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Canada great place for US Venture Capital investment

May 15, 2009

A report on Canadian venture capital (VC) opportunities for US investors has echoed many of the findings from the STIC report, praising Canada’s science and research environment and generous tax incentives.

The report cited a strong stem cell research architecture in Canada, citing Toronto’s stem cell community in particular. It points out that Canada’s VC community doesn’t have the large funds available in the US, and that Canadian companies are thus eager to do cross-border business. It saves its greatest praise, however, for Canada’s generous tax incentives for early-stage companies:

Canada has some of the most generous tax incentives you can get anywhere in the world,” said Miller Canfield attorney Jeffrey LaBine. “The numbers can be astronomical. In Quebec, for example, you can get a 60.5 percent tax credit. That has allowed Canada to do a very good job of building up its young companies.

So, we have great university research (“which will help build the pipeline of future companies” says one American VC representative), great tax incentives, great small companies – yet we do a poor job of innovation, according to the STIC report. Maybe it’s because not enough Americans are investing here…

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