Venture Capital is at a 16-year low (Views: 5798)
Tue, 17 May 2011
For the second year running, a PwC report on emerging Canadian software companies found angel investment was the primary source of funding for such firms. Based on results from over 100 Canadian CEO’s, venture capital only accounted for 8% of received financing within the industry. This can be compared to 53% who said individual investors or “angels” were their primary source of new funding. This presents the Canadian tech industry with a problem with regard to competing internationally. The report goes on to say that the amount of venture capital available in Canada has been steadily declining since the tech bubble burst in 2001. It currently stands at a 16-year low. The financial post reports venture capital investing in Canada, as a percentage of GDP, continued to lag VC invested in the U.S. by half in 2011. A key factor in the year-over-year drop was a relative shortage of major new venture capital partnership closings, according to Canada’s Venture Capital & Private Equity Association (CVCA).
Leave a comment
Please complete empty fields.
