BDC reported net loss $637.9M in FY 2023 for the VC program, compared to net income of $988M in FY 2022. One can look beyond BDC's own numbers for clues about the performance of Canadian venture capital.
Many questions about Canada Growth Fund (CGF) which will likely to further exacerbate existing government dominance by SDTC (Sustainable Development Technology Canada) and BDC, be short of it being able to attract a robust cohort of private sector investors to invest alongside it.
The five Superclusters came in for a fair amount of criticism for being long on promise and short on delivery: The Ocean Supercluster (OS) clearly failed to engage with capital providers, particularly in the VC industry.
Possible options to increase Canadian own VC supply and reduce reliance on foreign VC investments: removal of gate keeper, privatization of government owned VC entities, Canadian version of Business Development Company (BDC).
VC investments must be company centric and be measured on how much risk equity/quasi-equity capital the companies received from their investors. Secondary exit part of the overall funding round should never be included.
Richard Rémillard: Venture Capital Catalyst Initiative – Version 2.0: Needed or Not? VCCI-2 assumes that it is a needed program despite the world having undergone a 180-degree turn since 2013 (VCAP). Capital is likely to continue rushing into the venture space and a VCCI-2 may simply be redundant.