Canada needs a method to help early-stage startups access pools of capital that are generally targeting larger companies to help develop national champions, Finance Minister François-Philippe Champagne said Wednesday.

In the closing fireside chat at Invest Canada, Champagne was interviewed by Benjamin Bergen, the Chief Executive of the Canadian Venture Capital and Private Equity Association, or CVCA, which hosted the conference in Halifax. The recurring theme of the minister’s talk was that investors around the world want to put money in Canada for many reasons, but mainly because this country offers trust and stability in an uncertain world.

Focusing on the innovation economy, he spoke several times of the importance of channelling more capital into small businesses and startups.

“We need to improve the pathway for startups to access capital, so we can build the next Canadian champions,” the minister told journalists following the discussion.

Invest Canada is the flagship conference of the CVCA, which is the country’s main association for private capital. Meeting in Halifax for the first time since 2007, the conference took place as the federal government has introduced several initiatives to encourage investment in the Canadian economy. These include a $1.75 billion pool of money to encourage more investment in startups and innovation-driven companies.

While $1 billion of that pool has been earmarked for the Venture and Growth Capital Catalyst Initiative, which will invest in large private VC funds, questions remain about how the government should spend the remaining $750 million. Officially, the government wants the money to go to “early growth” companies, seen by many as a vague term. The CVCA has called for it to be used to support major funding for growth-stage companies, while the National Angel Capital Organization has proposed a plan to support angel funding that targets pre-seed- and seed-stage companies.

When asked by a reporter where he thinks that $750 million portion should be directed, Champagne immediately said, “Early stage.” While that would seem he’s leaning toward the NACO plan for the money, one observer noted that “early stage” in the context of this discussion likely means Series A or B rounds, which would probably mean funding rounds of $5 million or more.

A few times in his speech, Champagne said small companies and startups desperately need capital to help them grow, but they are often asking for small amounts of money that fall below the thresholds of many investment funds. The country needs some way to channel these major sources of capital into the bank accounts of the startups that need funding, he said.

Through most of his speech, Champagne made the case for Canada’s growing attractiveness as a destination for international capital.

“There is a lot of private capital in various parts of the world that is genuinely interested in investing in Canada,” he said, adding that the country offers huge opportunities in such areas as energy, critical minerals, food, technology and defence.

Bergen noted that one economic file the Carney government has not yet acted on is tax reform and asked if there were plans for a royal commission on tax reform. Champagne responded, “I love commissions but I prefer action.” The government understands reforms are needed and it might be best simply to do them, he said.

However, he added that Canada’s marginal rate of taxation on investment is actually the lowest in the G7 group of major economies. What’s more, the government has already implemented some reforms such as improvements to the Scientific Research and Experimental Development program, known as SR&ED.