The Canadian Retail Venture Capital Association (CRVCA), the voluntary association of retail venture capital funds, says it applauds the Harper government for its new Science and Technology (S&T) Strategy.

“This framework charts a new course for S&T in Canada and is a good piece of public policy,” says Les Lyall, president of CRVCA and senior vp of GrowthWorks. “As a significant supplier of venture capital in Canada, retail venture capital funds understand how important this policy is, and our Association applauds the government for taking this step towards improving Canada’s competitiveness in today’s global economy.”

CRVCA says retail venture capital funds are a critical component of Canada’s commercialization process. They hold a unique position by providing early and second stage financing to start-up companies and act as an irreplaceable bridge between “friends and family” and large institutional investors/IPO stage financing.

In 2006, retail funds accounted for 55% of all venture capital fundraising in Canada and provided 58% of all initial “seed” capital in the commercialization process.

As part of its new S&T Strategy, the government recognizes that in order to ensure a cutting edge, knowledge-based economy, Canada requires a deep pool of venture capital to help fund the commercialization process.

The CRVCA says it supports this position and looks forward to working with the government as it considers new and different approaches to stimulate the supply of venture capital in Canada.

“Canada must ensure it has an appropriate level of venture capital so the world class research and products it develops continue down the commercialization pathway to the marketplace,” says Lyall. “The CRVCA’s members are dedicated to supporting new and innovative businesses across Canada. We are encouraged by the government’s commitment to help foster more venture capital and look forward to working with them to achieve this goal.”

CRVCA is a volunteer-based association representing retail venture capital funds in Ontario. Its members have more than 600,000 shareholders and manage $2.7 billion in assets in more than 550 Canadian companies employing approximately 30,000 people.