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Databox

  • In 2009, Canadian firms secured less than 40 per cent of the dollars brought in by their U.S. counterparts.
  • Last year, Canadian VCs raised the lowest level of funding recorded since before the tech boom.

Video

Opening Canada to U.S. Venture Capital Investment

Opening Canada to U.S. Venture Capital Investment

President of Canadian Advanced Technology Alliance John Reid interviews Tom Houston, Managing Partner Fraser, Milner Casgrain LLP.

Topics: The Future of Venture Capital in Canada

Rob Hyndman
Technology Business Lawyer based in Toronto.

One of my favourite Sopranos characters once told Tony Soprano that he was at the "precipice of an enormous crossroads." It's beginning to feel like that in Canadian venture capital. The Canadian Venture Capital Association recently released 2009 data indicating that deal activity was at its lowest level since the mid-1990s. This is not a uniquely Canadian phenomenon, but the drought in new venture financing has seemed longer and drier in Canada than elsewhere. In some sectors, earlier-stage investors have become more visible, but what was once concern in the industry is now escalating to alarm, as more players ask what is to become of the Canadian innovation economy.




Ballot Box

Will Canadians benefit from eliminating restrictions against foreign investment?

Yes 71%
No 29%

Low Times for VC - Thumbnail Image
The Canadian venture capital industry is in danger of disappearing. Does anyone care enough to save it?
Original
Co-founder, Brightspark Capital.
Don’t Fear the Startup - Thumbnail Image
We need venture capital funds willing to risk $100,000 on an idea.
Original
Co-founder, Fixmo.
Creating a Venture Culture - Thumbnail Image
Canadian entrepreneurs need to take responsibility for their industry, not blame others for its failures.
Original
Creative Technologist and Technical Marketer.
Sustaining the Startup - Thumbnail Image
If the Canadian venture capital industry wants to survive, it needs to start producing returns.
Original
President, StartupCFO Enterprises.
A VC Ecosystem - Thumbnail Image
An entrepreneur with an idea and an investor with cash does not a successful venture make.
Original
Managing Partner, iNovia Capital inc.
A Necessary Contraction - Thumbnail Image
The venture capital industry is finally shrinking down to a workable size.
Original
Investor, Speaker, Writer, Media Guy, and Entrepreneur.
Startup Nation - Thumbnail Image
To ensure a healthy environment for innovation in Canada we have to secure growth and new value creation.
Original
Vice-President, New Ventures, Rogers Communications Inc.
VC Market Failure - Thumbnail Image
There are a number of reasons why the Canadian venture capital industry is sputtering, but there are also solutions.
Original
Founder and President, Ideon Media Inc.