Foreign VC investment in Canada : Foreign venture capital investment in Canada

The study was designed to provide a high-level profile of a small number of foreign VC investors, including both those that do and do not invest in Canada, and of Canadian firms financed by foreign and domestic VC funding, so as to contribute to the development of an understanding of the types of factors influencing foreign VC investment in Canada and the advantages and disadvantages associated wi [...] Given that the US VCs are the most important VCs in the foreign investor sector for Canadian firms – all of the top 10 foreign VCs investing in Canada are American, it is worthwhile noting that VC investment in the US fell more sharply in the US over the 2000 to 2002 period than foreign VC investment. [...] It is likely that the concentration of foreign VC investments in larger deals is due in Average $ Invested per Financing large part to the fact that US VCs, the dominant foreign VCs investing in Canada, typically invest in larger deals than is the case in Canadian VC investments on US average. [...] This is most dramatic in Ottawa, where the share of total financing is more than 8 times the share of the population, and the share of foreign VC financing is more than 18 times the share of the population. [...] The rate is reduced to 10% if the recipient of the interest is a resident of the U. S. The CVCA is concerned that the withholding tax imposed on interest payments made to non-residents discourages U. S and other foreign lending institutions from making loans to Canadian companies thus increasing the cost of borrowing in Canada and reducing the pool of affordable capital available to Canadian compa