Table 1: How Canada Compares Globally. While Canada has made meaningful progress, other countries are advancing faster through coordinated national strategies, leveraging tax incentives and public-private co- investment to scale innovation capital. These programs show what’s possible when public funding is used strategically to catalyze private risk-taking and reinvestment in key sectors. A unified capital strategy will ensure Canada keeps pace.
Tax Relief/Benefit Level
Eligibility Criteria
Co-Investment / Angel Networks
Jurisdiction
Type of Incentive
Proposed National Investment Tax Credit
30% investment tax credit; matching funds, co-investment structures; tax deferral on reinvested gains in strategic sectors
Canadian- controlled private corporations (CCPCs) focused on R&D and innovation
Proposed national support for angel mobilization; co- investment and structured vehicles to catalyze private capital at scale Co-investment via British Business Bank vehicles; prior support for angel syndicates via Angel CoFund SBIC leverages private capital with public guarantees; many states operate angel tax credits, matching programs National support for angel mobilization; co-investment for incubators, tech- transfer ventures, R&D consortia Startup Estonia supports angel networks, investor readiness
(NITC), Sovereign Capital Catalyst Initiative (SCCI), Strategic Capital Gains Deferral (SCGD), Entrepreneurial Capital Investment Program (ECIP) Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS); British Business Bank co- investments, Enterprise Capital Funds (ECFs), Future Fund: Breakthrough Qualified Small Business Stock (QSBS) exemption; Federal SBIC co- investment model; state- run angel tax credits / matching programs.
Canada
Early-stage startups; UK resident investors
SEIS: 50% tax relief; EIS: 30% tax relief
United Kingdom
Investments in qualified small businesses; must hold stock for at least 5 years Early-stage R&D or high-tech startups; qualifying domestic and international investors
Exclusion of up to US$10 million in
capital gains (federal tax)
United States
Tax credit equal to capital gains rate on investment (up to ILS 4M); matching grants and co-investment structures
Angels Law (tax credits for angel investors); Israel Innovation Authority co- investment model
Israel
All Estonian businesses reinvesting profits domestically
Zero corporate tax on reinvested profits; ecosystem support through Startup Estonia
No tax on reinvested profits
programs, early- stage ecosystem infrastructure
Estonia
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