Statement made on 13 May 2009 by Senator Art Eggleton
Hon. Art Eggleton:
According to a recent report by Canada's Venture Capital and Private Equity Association, the venture capital system in Canada is severely challenged. Between 2003 and the first three quarters of 2008, venture capital investment as a percentage of gross domestic product plummeted in Canada while investment rose sharply in the United States. This situation is nothing new. As the Standing Senate Committee on Social Affairs, Science and Technology pointed out in last year's report, entitled Mobilizing Technology to Canada's Advantage:
Canada's deficit in available venture capital funds compared with our competitors, particularly the United States, results in many small companies either failing, or being sold to foreign investors.
That report was supported by both sides of this chamber.
Venture capital is very important to the Canadian economy. It infuses much-needed private capital into early-stage, high-potential companies in the knowledge economy. That leads to new products and new jobs.
Will the government take action and work with firms to increase the availability of venture capital for Canadian entrepreneurs?
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