Labour-sponsored venture capital funds: Time for a reassessment

Labour-sponsored venture capital corporations (LSVCCs) programs have been around since the early 1980s and have not been significantly modified despite major changes in the financing environment for small and medium businesses which was their raison d’être. Creation of these entities was justified on the grounds that small companies had problems in obtaining financing, due in particular to an inadequate supply of capital that focused on this type of business. Many arguments can be made for re-examining this type of intervention, which has been suspended or called into question in several other provinces.

Links of interest

Media Release: Investments in labour-sponsored funds: the tax credits are unjustified

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