Appendix C (Continued):
3. How does the UK EIS/SEIS experience inform the analysis while respecting HMRC’s published data?
HMRC confirms sustained participation and relief rates (EIS 30%, SEIS 50%) and multi ‑ decade capital formation; where HMRC does not publish a single ‑ year ROI, the comparison focuses on participation, eligibility, and durability rather than ROI claims.
In brief: The benchmark relies on HMRC’s official uptake and reliefs, not unissued ROI figures.
4. What do the BDC 10 ‑ year IRR figures (11.7% and 10%) indicate about current conditions?
BDC reports a 10 ‑ year IRR of 11.7% for 2023, followed by communications highlighting a 10% 10 ‑ year IRR in 2024, illustrating recent performance pressure and the need to rebalance the capital continuum.
In brief: Both figures are BDC’s; the downward shift underscores the case for coordinated crowd ‑ in.
5. How should the NATO 5% by 2035 pledge be understood relative to earlier commitments?
The Prime Minister’s Office announced Canada’s alignment with a new NATO Defence Investment Pledge targeting 5% of GDP by 2035 (including dual ‑ use), updating the earlier 2% pathway and subject to periodic review.
In brief: The analysis reflects the PMO ‑ confirmed pledge that updates the 2% trajectory.
6. What is the status of Flow ‑ Through Shares for innovation, and how is it treated here?
Government has signalled intent to extend flow ‑ through to innovation sectors; design and legislation are pending, so it is treated as a complementary measure suitable for prudent piloting and staged implementation.
In brief: A complementary mechanism that supports capital momentum and recycling, not an alternative to supply or deployment measures.
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