Venture capital spending in Canada is still not back up to what
it was prior to 2008, according to a recent report published by the Organisation for
Economic Co-operation and Development (the
"OECD").1 The OECD found that Canada's
venture and growth capital spending in 2012 was down by about 20%
compared to 2007 levels.
Business loans in Canada were up during that time by about 5%
for SMEs and total business loans were up by about 14%. In
the US, business loans for SMEs were down by about 15% between 2007
and 2012, and, while venture capital spending during that period
was also down in the US, it was down by 5% less than it was in
Canada. Further, expansion and later stage funding in Canada
is back up to 2007 levels, however, seed, startup and other early
stage funding is not. The graph below highlights these trends.
While Canada is a good place for SMEs to obtain business loans,
it is lagging when it comes to raising venture capital. Access to
more early stage funding is essential for promising startups, as
well as for the development of an innovative economy.
Recognizing the difficulty for startup companies to obtain
venture capital, the Canadian federal government announced the
Venture Capital Action Plan ("VCAP") in January 2013,
discussed in more detail here. VCAP will make between $300 and $400
million available to various funds of funds over the next 7 to 10
years. The managers of those funds of funds will select the
recipients of funding based on various selection criteria.
1 The OECD is an organization headquartered in
France, with the primary goal of promoting "policies that will
improve the economic and social well-being of people around the
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).