Seven Toronto daycares, initially planning to withdraw from the national $10-a-day child care program effective January 1st, have reversed their decision and will remain part of the subsidized system. These daycares, connected to the venture capital firm MVG Ventures, are also associated with Curious Caterpillars. Their initial decision to opt-out was a factor in the federal government's denial of Ontario's request to increase the participation of for-profit providers in the program, highlighting ongoing tensions between provincial growth ambitions and federal regulations.
The daycares' initial decision to withdraw raised concerns among parents and policymakers. A letter to parents from Sunnyside Day Care confirmed that by staying in the program, fees for all spots would remain at $478.50 per month. Holton Hunter and John McCallum, listed as directors of Sunnyside, had notified their decision to leave in the fall, only to rescind it later. The City of Toronto has confirmed that all seven daycares have officially retracted their opt-out notices.
“Dialogue was also initiated with the City of Toronto to discuss what options were available.” – Sunnyside
“With that in mind, we engaged in a series of further conversations with a variety of child-care professionals including government representatives and other daycare operators, both those who participate in (the $10-a-day program) and those who don’t,” – Sunnyside
Federal Minister Jenna Sudds had cited these withdrawals as a reason for not allowing more for-profit provider participation in Ontario, arguing that such moves could undermine the program’s objectives. Ontario maintains that limiting for-profit spaces hampers growth; Peel Region alone had to reject over 2,000 potential spaces due to their for-profit nature.
Josclyn Johnson, a prominent voice in the child care debate, expressed relief at the daycares' decision.
“It’s heartening to know that the owners seem to have come to that conclusion too,” – Josclyn Johnson
Johnson also highlighted the complexities introduced when private equity enters child care.
“Undoubtedly, there are many for-profit operators in Ontario and in other parts of the country that are in this because they care deeply about providing high-quality care for families, and they genuinely care deeply … but where there is venture capital, private equity, these are not necessarily operators who are here for the best interests of our children,” – Josclyn Johnson
Despite these challenges, Johnson remains optimistic about the future of affordable child care.
“I think better access to affordable child care is the best option for our entire community and society at large.” – Josclyn Johnson
MVG Ventures, linked to Teddy Bear Academy through registration by Holton Hunter, did not comment on their involvement. Their connection underlines concerns about venture capital's role in this sector.
