Comments on: The Challenge (and Opportunity) for Regional VCs http://www.vcrants.com/2009/05/the-challenge-and-opportunity-for-regional-vcs/ 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: Sankar Krishnan http://www.vcrants.com/2009/05/the-challenge-and-opportunity-for-regional-vcs/comment-page-1/#comment-2460 Sankar Krishnan Tue, 26 May 2009 15:56:10 +0000 http://www.vcrants.com/?p=80#comment-2460 Thanks for this article. It is amazing how many times we come across US Venture Capital as "Smart Capital" and Canadian VC as "survival capital" We should all work together to change this...........We work with VC's globally on all types of financial research...Sankar Sankar Krishnan Managing Director Adventity Inc sankar.krishnan@adventity.com 212-679-8610 Thanks for this article. It is amazing how many times we come across US Venture Capital as “Smart Capital” and Canadian VC as “survival capital”
We should all work together to change this………..We work with VC’s globally on all types of financial research…Sankar

Sankar Krishnan
Managing Director
Adventity Inc
sankar.krishnan@adventity.com
212-679-8610

]]> By: sdw http://www.vcrants.com/2009/05/the-challenge-and-opportunity-for-regional-vcs/comment-page-1/#comment-2183 sdw Mon, 11 May 2009 12:43:40 +0000 http://www.vcrants.com/?p=80#comment-2183 There's an implied assumption in these comments that there are enough lps that will back Canadian VCs who invest solely in Canadian start-ups. There aren't, except perhaps in Quebec. So if VCs can't sell a Canadian only investing strategy to their lps, then the point of my post is, what next? One would be to sell lps on investing in a venture capital strategy that builds a position in a broader market, with a blended portfolio that includes investments in US businesses (which have historically had better returns). I agree that a good local base would be ideal, but I think if the money doesn't respond to this philosophy, different tactics are required. There is a growing concenr that we as a nation cannot prove there is a critical mass of companies that might yield venture-capital returns. Time to turn the concern away from that with a different philosophy. There needs to be some shift if the industry is to unlock more money for VC funds. There’s an implied assumption in these comments that there are enough lps that will back Canadian VCs who invest solely in Canadian start-ups. There aren’t, except perhaps in Quebec. So if VCs can’t sell a Canadian only investing strategy to their lps, then the point of my post is, what next? One would be to sell lps on investing in a venture capital strategy that builds a position in a broader market, with a blended portfolio that includes investments in US businesses (which have historically had better returns).

I agree that a good local base would be ideal, but I think if the money doesn’t respond to this philosophy, different tactics are required. There is a growing concenr that we as a nation cannot prove there is a critical mass of companies that might yield venture-capital returns. Time to turn the concern away from that with a different philosophy. There needs to be some shift if the industry is to unlock more money for VC funds.

]]> By: Chris Arsenault http://www.vcrants.com/2009/05/the-challenge-and-opportunity-for-regional-vcs/comment-page-1/#comment-2132 Chris Arsenault Fri, 08 May 2009 16:08:53 +0000 http://www.vcrants.com/?p=80#comment-2132 Note: iNovia Capital was first an early stage investor in Collective Media in 2007 (right after the angel round). It's important for a VC fund to be somewhat of a reasonable size (to be successful)in order to not only do the small early stage deals but to also be able to participate and play a guiding role with the Company when entering the growth phases and related fund raising activities (not just product or technology development phases). Its all about the network. Working with people you trust, building relationships to expand your horizons, knowledge and expertise. We are all but small pieces of a very large and complex ever-changing ecosystem. Its important that we be open, that we share, that we communicate within our local communities and most importantly outside of it. Give, receive, build trust, understand what drives the other parts of the ecosystem. This is not an easy feat because its driven by very different objectives. Yet, a little openness and understanding can go a long way! Keep building, keep pushing, make it happen, build companies you believe-in, invest in entrepreneurs you trust, share knowledge, share the deal. Note: iNovia Capital was first an early stage investor in Collective Media in 2007 (right after the angel round).

It’s important for a VC fund to be somewhat of a reasonable size (to be successful)in order to not only do the small early stage deals but to also be able to participate and play a guiding role with the Company when entering the growth phases and related fund raising activities (not just product or technology development phases).

Its all about the network. Working with people you trust, building relationships to expand your horizons, knowledge and expertise. We are all but small pieces of a very large and complex ever-changing ecosystem. Its important that we be open, that we share, that we communicate within our local communities and most importantly outside of it. Give, receive, build trust, understand what drives the other parts of the ecosystem. This is not an easy feat because its driven by very different objectives. Yet, a little openness and understanding can go a long way!

Keep building, keep pushing, make it happen, build companies you believe-in, invest in entrepreneurs you trust, share knowledge, share the deal.

]]> By: Mark MacLeod http://www.vcrants.com/2009/05/the-challenge-and-opportunity-for-regional-vcs/comment-page-1/#comment-2130 Mark MacLeod Fri, 08 May 2009 15:42:27 +0000 http://www.vcrants.com/?p=80#comment-2130 At 7:31 AM, startupcfo said... You've hit on some of the big issues here. Its hard for Canadian VCs to get good quality deals. There are some exceptions, such as iNovia investing in Collective Media. Canadian VC has traditionally been early stage, providing our local companies with their A and sometimes B rounds. After that, companies goto the US to raise. I don't know what all the issues are, but think generally before you expand your foundation should be solid. That pithy truism applies in all cases, including having our VCs scour everywhere for deals. Make sure you have a solid foundation, good deal flow and good performance in your own backyard as a foundation. That creates the strength and ecosystem of entrepreneurs and other players needed to generate superior long term returns. At 7:31 AM, startupcfo said…
You’ve hit on some of the big issues here. Its hard for Canadian VCs to get good quality deals. There are some exceptions, such as iNovia investing in Collective Media.

Canadian VC has traditionally been early stage, providing our local companies with their A and sometimes B rounds. After that, companies goto the US to raise.

I don’t know what all the issues are, but think generally before you expand your foundation should be solid. That pithy truism applies in all cases, including having our VCs scour everywhere for deals.

Make sure you have a solid foundation, good deal flow and good performance in your own backyard as a foundation. That creates the strength and ecosystem of entrepreneurs and other players needed to generate superior long term returns.

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