Government consulting on $400 million committed to VC

The federal government has launched a consultation process to determine the best ways to spend the $400 million it committed in the last Budget to stimulate the venture capital industry. Respondents have until July 27th to submit comments and suggestions to the Department of Finance on how the government can contribute to the development of a sustainable VC ecosystem, increase the number of successful companies by encouraging private-sector investments in early-stage capital, and develop a deeper pool of experienced fund managers. The government acknowledges that the current suite of industry support systems may not be achieving the desired result. The Canadian VC industry has experienced low returns, a decline in fundraising and an inability to attract institutional investors such as pension funds. The $400-million commitment is intended to target early-stage firms and follow-on investments by encouraging the creation of large-scale, private-sector led funds….