SCAN_logoTight.jpeg BLOGARHYTHMS>>> Ontario government as V.C.?

McQueen%2C%20Mark44X64.jpgPosted by Mark McQueen

What’s that well-worn phrase, “government’s shouldn’t pick winners and losers”? If you’re a purist, hold onto your chair. The press release is skinny on details, but the Ontario government has just announced a new $250 million fund that will, it appears, co-invest with “qualified venture capital funds and private sector investors. The fund would match small to medium private sector investments and receive an interest in companies it supports….” Starting in July. Of this year. The OVCF was launched 18 months ago it has yet to make a single formal investment announcement (see prior post “Did the Ontario Venture Fund finally pull the trigger?” March 16-09)…so a July 2009 first investment date is blindingly quick. Neither form nor structure are clear, and rather than take (or even seek) the advice of the Canadian Venture Capital & Private Equity Association and double-up on the Ontario Venture Capital Fund (see prior post “CVCA’s budget pitch to Ont. Premier McGuinty” March 17-09), the Province has decided to become a VC themselves. And no word about extending the runway for the LSIF funds, either (see prior post “The great LSIF myth” July 2-08). But there’s still time to see that in the upcoming budget. As pre-budget announcements go, this one makes sense to put out ASAP. Click here to read more of Mark's post.

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