[manishsharan]

I do not believe government should be in the business to fund VCs. Canada has several pension funds and mutual funds and most of then seem to be doing well; if American VCs can raise their funds from their pension funds, why do the Canadian VCs need a hand out from the government even while Canadian funds are actively participating in American Venture funds. Most likely the Canadian VCs who do receive government money under this program will do so because of their political connections and they will end up funding their cousins's start-ups.

[arikrak]

It's true that long-term the government shouldn't be investing, but it can sometimes help to get things going. Israel was successful in this regard - it gave some funding in the 90's and then got out of the way. The questions is if Canada really needs that same boost.

[pokoleo]

Is having a boost the wrong thing to do? In any case, it strengthens the country's economy, if spent correctly.

[ekianjo]

That's the point, the government is completely clueless how to make good choices on the market. All this kind of government intervention in specific areas is the root of bubbles.

[canadiancreed]

I'm hoping that it's not a national version of the PMP program that PEI had (and may still have) a few years ago, and will be spread out to those needing funding instead of folks that know the right people. But you're right it's got that slightly fishy smell to it. Guess the only way we'll know for sure is if we see all the money flowing into Conservative held ridings and/or associates. It'd be great for my current employer (startup out in the middle of nowhere in a Conservative riding that is getting government grants), but it's not the way it should be done.