| Both Venture Capital and Angel investors worldwide | | | | lobbying to change Section 116 would be positive for |
| have been challenged to raise a significant amount of | | | | entrepreneurs in Canada and create world-class VC |
| money because of the challenging times world-wide. | | | | firms. |
| In Canada, raising money from outside the country | | | | With the current economic state entrepreneurs need |
| has been relatively challenging because of Section 116 | | | | to be able to access capital to grow their businesses |
| which makes tax treatment for United States | | | | in Canada. Changing the tax treatment for United |
| investors a time consuming affair. | | | | States to make it easier for Angels and Venture |
| In British Columbia, the BC Renaissance Capital Fund | | | | Capital investors to invest in Canadian businesses |
| has created pools of money to invest in venture | | | | could be very positive for entrepreneurs and business |
| funds. However, this VC has to invest a significant | | | | growth within Canada. |
| amount of the commitment back into companies | | | | Finding the money has always been a challenge and |
| from that province. | | | | now with the tightening of the belts worldwide it is |
| Canada is competing for capital and talent | | | | indeed more difficult. Section 116 tax treatment for |
| internationally. Administrative hurdles like Section 116 | | | | the United States investors should not be a time |
| give Canadian VC's hurdles to compete for capital | | | | consuming affair. The United States and Canada can |
| internationally. Canadian VC's traditionally invest their | | | | work together to stimulate our business economy if |
| money in their home region so the net effect of | | | | changes are made to Section 116. |