Oh please. VC funds across Canada have hundreds of millions of dollars they would love to invest, if only they could find fundable companies. If they go through that, there's more where it came from. There is no scarcity.
If anyone at the CVCA would like to name a fundable company in Ontario that can't find VC funds, please let me know and I'll be happy to put it in touch with some VCs desperately searching for deals.
Additional sources of funding are always welcome -- different sources have different funding criteria, and the more sources there are, the better a company's odds of finding investment dollars. As much of a farce as LSIFs are in some dimensions, at least they increase the number of sources of VC money. LSIF managers like GrowthWorks and VenGrowth provide additional feet on the street actively looking for and shaping investment opportunities. I don't see anything in this budget announcement to suggest that it will have a similar effect.
Pretending that there's a shortage of venture capital isn't helpful.