Canadian Prime Minister: $400M to Strengthen Canadian VC

I do not believe government should be in the business to fund VCs. Canada has several pension funds and mutual funds and most of then seem to be doing well; if American VCs can raise their funds from their pension funds, why do the Canadian VCs need a hand out from the government even while Canadian funds are actively participating in American Venture funds. Most likely the Canadian VCs who do receive government money under this program will do so because of their political connections and they will end up funding their cousins's start-ups.

This just takes money from taxpayers who won't see a dime of the upside and gives it to VCs so they won't have to risk a dime on the downside. Why is this a good idea?

Stephen Gordon has a good take on this: <a href="http://www2.macleans.ca/2013/01/14/stephen-harper-state-venture-capitalist/" rel="nofollow">http://www2.macleans.ca/2013/01/14/stephen-harper-state-vent...</a>

I will believe it when they start making money available, being an Ontario based business in the GTA owned by a white male non minority not in the middle of the sticks.... youre gonna be out of luck.<p>I went through no less than 50 funds available for companies in Ontario and didnt qualify for a single one. Yet, if I was in North West Territories and native... I would have millions at my disposal.

Is that a stack of greenbacks they are flipping through? :)