4.3 Conservative Scenario (0.1% wealth management allocation) Mobilizing just 0.1% of Canada’s approximately $2 trillion in wealth management assets—a figure supported by recent industry estimates and projections—would unlock $2 billion in investment. Based on job creation rates observed in comparable early-stage investment programs, this level of capital deployment could generate an estimated 6,000 to 8,000 new jobs. If this allocation were successfully scaled to a more ambitious 0.5%, Canada could realize substantially greater economic and employment impacts, potentially mobilizing $10 billion in investment and supporting tens of thousands of additional jobs. From a portfolio diversification perspective, a prudent allocation to early-stage Canadian investments typically ranges from 2–5% of an investor’s total assets. By encouraging even a modest 0.1% allocation across Canada’s wealth management industry, the system can efficiently channel significant private capital into high-growth sectors while maintaining sound risk management at the individual investor level. As more investors adopt this approach, the cumulative effect can catalyze transformative growth in Canada’s innovation economy, demonstrating how responsible, diversified investment strategies can scale up to deliver broad national benefits. Ongoing evaluation and adjustment will be important, given the dynamic nature of innovation ecosystems in a highly competitive global environment. 5. International Evidence International evidence from Israel and Estonia highlights the role of strong networks and institutional support in amplifying the impact of capital. International benchmarks underscore the transformative potential of well-designed early-stage capital policies. Israel, for example, mobilized $28,000 in venture capital per capita in 2021—28 times the US average—through a combination of robust public-private co-investment, targeted innovation authority programs, tax incentives for angel investors (Angel’s Law), and strong foreign investor participation. Estonia leads Europe with €1,056 in venture capital invested per capita and VC investment reaching 3.59% of GDP in 2022—figures enabled by its digital government, zero tax on reinvested profits, and a compact, highly networked ecosystem. Boasting more than 1,000 startups per million inhabitants, Estonia has produced an outsized number of €1 billion-plus companies and consistently attracts both local and international capital. The US Qualified Small Business Stock (QSBS) program, which allows investors to exclude up to $10 million in capital gains from federal tax, has significantly increased the attractiveness of early-stage investment and improved after-tax returns for investors. These examples highlight that coordinated, well-designed policy can rapidly transform a nation’s
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