Canadian Prime Minister: $400M to Strengthen Canadian VC (opens in new tab)

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.

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.

It is not.

It is Steven Harper and Jim Flaherty privatizing profits and outsourcing costs to the people, business as usual.

Remember ~$2 billion dollars disappearing into thin air[1]? Well, I mean, there was the $2m fakelake[2], an unlawful prison[3], and a 'terrorist' was caught[4] (and released[5]) but I still think Canadians did not get their money's worth. Sonic cannon's manufacturers, on the other hand, made out quite nicely. Oh, Canada...

[1]http://www2.macleans.ca/2010/06/17/why-host-a-billion-dollar...

[2]http://www.cbc.ca/news/canada/story/2010/06/23/g20-fake-lake...

[3]http://www.cbc.ca/news/canada/toronto/story/2012/06/28/toron...

[4]http://www.torontolife.com/daily/informer/from-print-edition...

[5]http://www.cbc.ca/news/canada/toronto/story/2012/05/15/toron...

Venture capital largely gets spent on employee salaries. At worse, the money while it lasts will create good jobs - think of it as a Keynesian stimulus, something the Conservative government's not usually known for. At best, it jumpstarts a lot of legitimate growth, like Israel's 1993 Yozma plan.

I suspect most of the people in this thread are just grousing because they don't like their government, and therefore don't like anything it does. But Canada's been starved for venture capital for a long time, which has resulted in a lot of unnecessary brain drain. No program is guaranteed to succeed, but here Harper's doing something quite smart.

Stephen Gordon doesn't know what he's talking about. Take this, for example:

In a market economy, the excess demand for venture capital would be closed by a price adjustment: entrepreneurs would be obliged to accept smaller injections of capital, would have to offer more control of their firms, or some combination of the two.

This is only true if entrepreneurs have to stay entrepreneurs, have to stay in the Canadian market, and have to take venture capital, no matter how crap the deal. Since none of these things are particularly true, Canada ends up with fewer entrepreneurs, emigrating entrepreneurs, and entrepreneurs who simply do without and grow their companies more slowly - and none of those are particularly great for the Canadian economy.

Yeah they hand out million dollar bills to anyone who isn't white. It's happening everywhere and you're missing out. Boo hoo.

Get over your centre of the universe racism and make something of value.

Yeah, I don't know why you didn't secure funding because you're coming off as incredibly thoughtful and charming right now.

Why not move then? It's millions, man! Millions!

Martyrdom much?