Welcome To 1995

Today the CVCA released its latest report highlighting the state of venture funding in OHANL—the short story is that it stinks! We’ve written about this situation in prior posts and it seems the news will not improve soon. If you are a startup and looking for venture money be prepared for some very hard slogging, numerous dead ends and the brush-off in most meetings. We’re pulling for you.

2009-Q3 Update

In the report the CVCA released yesterday they highlighted that the state of Canadian VC funding is worst it has been in 14 years. This is a reality that will not surprise the majority of start-ups and VC players in the market. Their report hit up front and center;

…VC activity in Q3 2009 was the weakest recorded in 14 years. Furthermore, dollars invested at the end of the first nine months of the year, totaling $682 million, was 36% shy of the $1.1 billion invested at the same time in 2008. This suggests that final 2009 outcomes might well slip below the $1.0 billion-dollar mark for the first time since 1995.

CVCA Recommendations

The association had some specific recommendations for the Canadian government to consider;

  • establish and grow fund of funds structures
  • make improvements to the SR&ED tax credit program
  • improve the incentives for corporations to invest in venture capital funds
  • actively promote investment in Canadian venture capital funds as part of the offset agreements that are negotiated with major government contractors
  • improve measures be taken to improve the attractiveness of venture capital to retail investors.

Some ideas worth considering.

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