Prime Minister Stephen Harper has announced a plan to strengthen venture capital investment in Canada.

Under the plan, the government will aim to deploy $400 million to help increase private sector investments in the next seven to 10 years.

mi-harper-03824900

Prime Minister Stephen Harper held a press conference Monday to announce a plan to boost venture capital investments in Canada. The $400 million initiative was included in last March's budget. (Chris Young/Canadian Press)

The money was first announced in last March's budget.

The Venture Capital Action Plan will make available $250 million to establish new funds led by the private sector.

As well, up to $100 million will be made available to recapitalize existing large private-sector funds.

There will also be a $50-million investment in three to five existing high performing Canadian venture capital funds.

Harper made the announcement in Montreal today.

The prime minister says the key to Canada's global competitiveness depends on Canada's venture capital industry having the resources to be sustainable.