Venture capital investment in Canada dipped 2 per cent in the second quarter of 2011 on sluggish fund-raising activity, data showed Tuesday.
According to the report released by Canada’s Venture Capital & Private Equity Association (CVCA), VC invested across Canada totaled $328-million between April and June compared to $335-million invested the year before.
“After a period of steady, if moderate, expansion in VC invested, it is very concerning to see weaker dollar flows at this point”, said Gregory Smith, President of the CVCA and Managing Partner, Brookfield Financial. “Clearly there is demand coming from young, entrepreneurial businesses – a fact that is borne out by year-over-year growth in company financings – but this demand is not being met by an adequate supply of value-added risk capital.” added Mr. Smith.
If Canada’s venture capital market is ever to come back, the federal government will have to buck up and support it, argue some of the industry’s most respected investors. Their call is being made out of frustration, writes Globe Investor reporter Tim Kiladze. Read more about the demise of Canada's VC market here.
Bleak outlook for would-be entrepreneurs
“Imagine a small airstrip where single-seat planes head down the runway, get 100 feet into the air and crash back to Earth, joining a heap of wreckage that grows by the day. You'd think this might discourage people deciding to become a pilot,” writes John Bussey in this article for the Wall Street Journal.
The number cash-strapped small businesses in the U.S. right now -- with poor sales, lack of credit and fierces competition from abroad -- doesn't exactly inspire even the boldest risk-takers to take the entrepreneurial plunge. The bleak economic outlook indeed begs the question: will the damage done by the weak economy have a long-lasting effect, discouraging the next generation of entrepreneurs?
What you can learn from reality TV
What do Kim Kardashian, Kate Gosselin and 'The Situation' (Snooki, Pauly D., among others) have in common, besides being famous-for-being-famous reality TV stars? The answer: they've turned their celebrity (and seeming lack of talent) into high net-worth brands. In this post from Huffington Post, find out what entrepreneurs can learn from reality TV.
EVENTS AND KEY DATES
GrowLab Open House
Want to meet the five companies chosen for GrowLab's inaugural Fall program? Here's your chance. Today the Vancouver-based startup accelerator is hosting an open house in Gastown between 4 and 7pm. Learn more about the program here.
Brunch with The Honourable Jim Flaherty
On the morning of Monday September 12, the Durham Regional Chamber/Boards of Trade will be hosting Minister Flaherty. He will speak about Canada's solid economic performance, the challenges and potential dangers facing small businesses and the steps that are being taken to protect and grow the economy for the future. Sign up here.
EDITOR'S PICKS FROM REPORT ON SMALL BUSINESS
Food critic dishes on her Canadian dining magazine
In Part One of Talking to Entrepreneurs, Sara Waxman, award-winning restaurant critic and founder of DINE magazine, explains how she came up with the idea for her publication. Watch Part Two and Part Three.
FROM THE ROSB ARCHIVES
How to pick your ‘social media person'
It's one thing to come up with a strategic plan but it's another to actually designate someone to post on a regular basis. Once you understand the level of commitment, you can figure out the person who can handle the job. For small businesses, it may be the person most comfortable with writing and marketing, which could be anyone from the boss to the salesperson who happens to have a lot to say.
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