The Ontario government has made encouraging policy initiatives that help bring innovative high-tech applications to market more efficiently, according to the group representing retail venture capital industry.

The budget released Thursday was well-received by the Retail Venture Funds Association.

The budget released contained far-reaching initiatives that will help the province’s entrepreneurs, scientists and researchers develop and market new technology here instead of other jurisdictions, the RVFA said.

The measures include the proposed investment of $715 million in investments to support innovation, encouraging the development of new products and services, and recognizing the important role innovation plays in Ontario’s economic prosperity.

“This past year has been tough on Ontario workers, but it’s also been tough on venture capital investors and the start-up firms that rely on them,” said RVFA board member John Varghese, managing partner of VentureLink Funds. “The result has been that many early-stage technology companies have not been able to gain access to capital pools at a critical time in their development. The budget measures will help instil confidence in our tech sector and motivate venture capital investors to start investing in innovative Ontario companies again.”

The RVFA is hopeful that the Ontario government will build on measures in the budget and allow investors in its Labour-Sponsored Investment Funds to continue to claim a partial tax credit on their investment.

“Retail venture capital funds are the fuel that will power the Ontario government’s innovation and commercialization agenda outlined in Finance Minister Dwight Duncan’s speech. Venture capital is critical in creating high-paying engineering, research and technology jobs, and will help establish a 21st-Century economy based on knowledge, advanced skills and innovation,” Varghese said.

IE