Atlantic Canadian venture capital firm Sandpiper Ventures, which specializes in backing female-owned businesses, is one of five organizations nationally to receive a combined $25 million from the federal government via BDC and Innovation, Science and Economic Development Canada.

Managing partner Rhiannon Davies said in an interview the money will go towards a second fund that Sandpiper is currently raising, which will be larger than its $20 million SV Fund 1. The exact portion of the federal money that Sandpiper will receive is still being negotiated with BDC, according to a government spokesperson.

“We are so proud to be among the first all women-GP funds in Canada, investing in women entrepreneurs who bring very unique perspectives and unique insights, leading to more creative solutions and better businesses,” said Davies, speaking at a press conference Wednesday.

Founded by Davies, former Newfoundland and Labrador finance minister Cathy Bennett and public relations veteran Sarah Young, Sandpiper is the only one of the five funding recipients to be headquartered in Atlantic Canada. The others are BKR Capital and Ripple Ventures in Toronto, along with District Ventures Capital and The51 in Calgary.

All five funds are aimed at supporting underrepresented founders, and the recipients will be required to report back to government on their inclusion-related activities. A call for proposals for a second round of investments worth $25 million will remain open until Nov. 22. The money is being distributed under the Trudeau government’s Venture Capital Catalyst Initiative, or VCCI.

“VCCI requires all recipients, regardless of investment stream, to demonstrate their commitment to diversity and inclusion,” said Minister of Small Business Rechie Valdez. “This opens the doors that would been closed to women and minority-owned businesses.”