SMALL BUSINESS BRIEFING: Billionaire calls for national startup funding program: SEAN STANLEIGH at the Globe and Mail
June 6, 2012
Vicious circle’ cited as a trap
Sir Terry Matthews, founder of Mitel Corp. and Newbridge Networks Corp., has teamed up with the Canadian Advanced Technology Alliance lobby group to call for the creation of a national venture capital strategy, according to a post on the CATA website.
Interested readers can obtain A Venture Capital Blueprint for Canada by e-mailng a request to firstname.lastname@example.org.
“Unless we take this opportunity to rethink Canada's approach … we will not have achieved much more than a short-term fix to the VC sector, perpetuating the classic ‘vicious circle' within which both our VC industry and tech sector industries are now trapped,” Mr. Matthews and CATA said in a news release.
Among the key recommendations in the blueprint:
-- Ottawa should choose a private VC firm to set up and manage an investment portfolio.
-- The Business Development Bank of Canada (BDC) should place the money with top VC funds across Canada based on a bidding process.
-- Canada’s program should be modelled after Israel's Yozma initiative, which is credited with helping that country rank only behind Silicon Valley as the largest VC market in the world.