Comments on: OUR INDUSTRY IS ALIVE AND KICKIN’ – So lead, follow or get out of the way! http://www.vcrants.com/2009/04/our-industry-is-alive-and-kickin%e2%80%99-%e2%80%93-so-lead-follow-or-get-out-of-the-way/ Share the good, the bad and the ugly on the world of Venture Capital and Private Equity in Canada! Fri, 27 Aug 2010 09:47:25 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: sandra742 http://www.vcrants.com/2009/04/our-industry-is-alive-and-kickin%e2%80%99-%e2%80%93-so-lead-follow-or-get-out-of-the-way/comment-page-1/#comment-5605 sandra742 Wed, 09 Sep 2009 14:35:30 +0000 http://www.vcrants.com/?p=73#comment-5605 Hi! I was surfing and found your blog post... nice! I love your blog. :) Cheers! Sandra. R. Hi! I was surfing and found your blog post… nice! I love your blog. :) Cheers! Sandra. R.

]]> By: Chris Arsenault http://www.vcrants.com/2009/04/our-industry-is-alive-and-kickin%e2%80%99-%e2%80%93-so-lead-follow-or-get-out-of-the-way/comment-page-1/#comment-1730 Chris Arsenault Wed, 08 Apr 2009 19:37:59 +0000 http://www.vcrants.com/?p=73#comment-1730 Obama wants to change the tax brackets for VC & PE Carried Interest from Capital Gains to it becoming pure standard taxable income (thus increasing the taxation on carried interest, to be non-capital gains). As for Cdn following the US as regards to the "when" it becomes taxable... not sure Canada will follow the US! So for now, not so great, but we will see. In my view the Cdn government should first and foremost focus on resolving th Section 116 of the Tax Act - which is why many US Funds are Reluctant to Invest in Private Canadian Companies. Obama wants to change the tax brackets for VC & PE Carried Interest from Capital Gains to it becoming pure standard taxable income (thus increasing the taxation on carried interest, to be non-capital gains).

As for Cdn following the US as regards to the “when” it becomes taxable… not sure Canada will follow the US! So for now, not so great, but we will see.

In my view the Cdn government should first and foremost focus on resolving th Section 116 of the Tax Act – which is why many US Funds are Reluctant to Invest in Private Canadian Companies.

]]> By: Brian Sharwood http://www.vcrants.com/2009/04/our-industry-is-alive-and-kickin%e2%80%99-%e2%80%93-so-lead-follow-or-get-out-of-the-way/comment-page-1/#comment-1729 Brian Sharwood Wed, 08 Apr 2009 17:05:00 +0000 http://www.vcrants.com/?p=73#comment-1729 Chris, I hadn't seen that Obama was doing that. That should help the Canadian industry, no? It should even out the playing field because, as I understand it, Cdn VCs pay out on exit, but US don't, as long as they keep it within the fund. Am I understanding that correctly? Chris, I hadn’t seen that Obama was doing that. That should help the Canadian industry, no? It should even out the playing field because, as I understand it, Cdn VCs pay out on exit, but US don’t, as long as they keep it within the fund.

Am I understanding that correctly?

]]> By: Mark MacLeod http://www.vcrants.com/2009/04/our-industry-is-alive-and-kickin%e2%80%99-%e2%80%93-so-lead-follow-or-get-out-of-the-way/comment-page-1/#comment-1728 Mark MacLeod Wed, 08 Apr 2009 16:31:42 +0000 http://www.vcrants.com/?p=73#comment-1728 Great post Chris + thanks for the mention. I had meant to chime on the whole exchange over Mark's interview but was too busy. For better or worse we are definitely alive and kicking! Great post Chris + thanks for the mention. I had meant to chime on the whole exchange over Mark’s interview but was too busy. For better or worse we are definitely alive and kicking!

]]> By: Chris Arsenault http://www.vcrants.com/2009/04/our-industry-is-alive-and-kickin%e2%80%99-%e2%80%93-so-lead-follow-or-get-out-of-the-way/comment-page-1/#comment-1726 Chris Arsenault Wed, 08 Apr 2009 15:23:42 +0000 http://www.vcrants.com/?p=73#comment-1726 Thanks. Funny you mention your father's old issues: capital gains taxes for venture investments, President Obama is planing on attacking the current carried interest tax structure as capital gains. The impact will definitely be felt in Canada. So it will be a future discussion topic for sure. Meanwhile we have to make sure we continue to build a vibrant venture capital community and entrepreneurship ecosystem in Canada. Thanks.

Funny you mention your father’s old issues: capital gains taxes for venture investments, President Obama is planing on attacking the current carried interest tax structure as capital gains. The impact will definitely be felt in Canada. So it will be a future discussion topic for sure. Meanwhile we have to make sure we continue to build a vibrant venture capital community and entrepreneurship ecosystem in Canada.

]]> By: Brian Sharwood http://www.vcrants.com/2009/04/our-industry-is-alive-and-kickin%e2%80%99-%e2%80%93-so-lead-follow-or-get-out-of-the-way/comment-page-1/#comment-1724 Brian Sharwood Wed, 08 Apr 2009 14:01:43 +0000 http://www.vcrants.com/?p=73#comment-1724 Great article Chris. My rant was absolutely from my entrepreneurs perspective at this point in my career. I worked for a VC in Boston and one in New York, and my father was one of the leading merchant bankers in Canada. In short, I've grown up around this issue. My point was not specifically centred about the VC industry itself. Techvibes titled the article, and in my opinion, mistitled. I am more concerned about the ratio of funds from government going to supporting the industry and creating a 'ecosystem'. Ecosystems can be helped, but they are also created from entrepreneurs themselves. Look at Mesh, going on right now. Did government start that? My point was quite large sums of money are spent by agencies like MRI, OCE, MaRS, BDC, OMDC, and so on - fostering and deciding where money is going to be spent, with little sense of ROI. As one commenter on the Techvibes article points out, if I were putting my money in charity and so little funds made it through to the actual end-user, I'd be quite disappointed in my charity. This is my government funds, and I hope large amounts make it through to real entrepreneurs, less on admin. I'll give credit where it's due - and both the current MRI initiative and the Quebec Government's new fund should help push things in the right direction, and it also should help the VCs in getting extra return for their investments as their companies get 'bonus capital' to help them grow. It's great that this discussion is back centre stage. Perhaps one of my father's old issues, capital gains taxes for venture investments can be raised again? Great article Chris.
My rant was absolutely from my entrepreneurs perspective at this point in my career. I worked for a VC in Boston and one in New York, and my father was one of the leading merchant bankers in Canada. In short, I’ve grown up around this issue.

My point was not specifically centred about the VC industry itself. Techvibes titled the article, and in my opinion, mistitled. I am more concerned about the ratio of funds from government going to supporting the industry and creating a ‘ecosystem’. Ecosystems can be helped, but they are also created from entrepreneurs themselves. Look at Mesh, going on right now. Did government start that?

My point was quite large sums of money are spent by agencies like MRI, OCE, MaRS, BDC, OMDC, and so on – fostering and deciding where money is going to be spent, with little sense of ROI. As one commenter on the Techvibes article points out, if I were putting my money in charity and so little funds made it through to the actual end-user, I’d be quite disappointed in my charity. This is my government funds, and I hope large amounts make it through to real entrepreneurs, less on admin.

I’ll give credit where it’s due – and both the current MRI initiative and the Quebec Government’s new fund should help push things in the right direction, and it also should help the VCs in getting extra return for their investments as their companies get ‘bonus capital’ to help them grow.

It’s great that this discussion is back centre stage. Perhaps one of my father’s old issues, capital gains taxes for venture investments can be raised again?

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