U.S. Firms Driving Canadian Venture Capital

While there is good news in the money available to start-up companies there is a serious concern in the domestic VC sector. Last year Canadian firms raised only $1.19-billion compared to $1.64-billion in 2006. This downturn reflects the continued difficulty experienced by labour-sponsored funds. Labour-sponsored fundraising declined 18% last year hitting a low of $741-million. So while the news of VC investments is good, "we need strong Canadian investors if we want strong Canadian companies," says Rick Nathan, president, CVCA and managing director of Kensington Capital Partners. Ontario still remains the largest market for venture capital investment in Canada, representing 46% of all activity. Last year, the province received $937-million for 124 companies, which represents a 35% jump from 2006. Quebec investment totaled $648-million, representing 8% jump from 2006. Investment in British Columbia also increased a marginal 3% to hit $310-million. ... http://www.financialpost.com/small_business/story.html?id=303644

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