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>>But in some situations, raising $150M with government and institutional backers is easier than raising from traditional VC directly. Like a big government bac
by otoburb 6y ago
>>But in some situations, raising $150M with government and institutional backers is easier than raising from traditional VC directly. Like a big government backed initiative with all the flair, PR, announcements.
The >$150M raised, a good chunk sourced by the provincial government, is in a sense more "precious" because there's so little Canadian venture capital with low(er) risk tolerances floating around, resulting in yet further tightening of Canadian VC capital. The problem compounds itself.
- jariel 6y agoThe money came from Desjardins etc. because of the 'strategic' and 'nationalist' aspect of the investment. No VC - even American one's were going to invest in that kind of boondoggle up front at those valuations. So you're right when you say 'there isn't enough money' - at the same time, that's not the problem specifically here, and, frankly, good companies will get the money. There are big funds in Canada.