Canadian venture capital (VC) investment shows no sign of pulling out of its long downward spiral, according to depressing new data from Thompson Reuters. For Q3/09, VC investment across Canada totaled just $191 million, down 51% from the same period in 2008. VC investment for the first three quarters of 2009 stands at $682 million, raising the possibility that disbursements for 2009 will fall below $1 billion for the first time since 1995 — a 14-year low. Q3 data show that investment in Ontario-based companies is the hardest hit, with just 424 million flowing, a staggering decline of 87% from Q3/08 when $179 million was invested. Ontario accounts for just 13% of national investment, compared to 42% for all of last year. The picture for VC fundraising is even worse, falling to a record low of $65 million in Q3 or half of what was committed in Q3/08. Future investment in the technology sector is expected to erode even further in the coming years unless corrective action is taken. The Canadian Venture Capital and Private Equity Association (CVCA) says response to the crisis must be quick and decisive and is calling for a blue-chip panel to develop a road-map for Canada's technology industries as part of a comprehensive innovation strategy. Other CVCA recommendations include improvements to the SR&ED tax credit program, more funds of funds, incentives for companies to invest in VC funds and making VC funds part of offset agreements with major government contractors….