The 2022 Legislative Review of the BDC Act reaffirmed BDC’s role as a critical public-market actor focused on addressing capital market gaps. The review emphasized the need for BDC’s interventions to complement, rather than displace, private investors or parallel ecosystem actors. It also highlighted the importance of prioritizing underserved segments—such as early-stage companies, underrepresented founders, and geographically disadvantaged regions. BDC’s role uniquely complements private-sector capital by addressing market gaps that private investors find challenging, such as early institutional-stage investment or specialized sectoral funds. A concrete example includes BDC’s role as anchor investor in early venture funds, catalyzing additional private investment by signaling institutional confidence. These findings point to a compelling opportunity for policy innovation at the pre-institutional level. Strategic, investor-facing incentives—such as a national investment tax credit, capital gains rollover, or a flowthrough model for innovation—can expand participation, attract new capital, and ensure that early-stage funding is not confined to those with privileged networks or concentrated geographies. 6. Angel Investment in Canada Early Development (Pre-2000s) ● Informal Networks : Primarily through personal connections without structured organizations ● Regional Business Communities : Local business leaders provided capital in major urban centers ● Limited Recognition : Remained largely unrecognized as distinct asset class Organization and Growth (2000s-2010s) ● First Angel Organizations : Groups like Toronto's Maple Leaf Angels (2007) and Vancouver's VANTEC (1999) ● National Angel Capital Organization (NACO) : Founded in 2002 as industry association ● Provincial Tax Credit Programs : Several provinces introduced investor tax credits for angel investments Current Landscape (2010s-Present) ● Growth in Angel Groups : Over 45 angel groups operating across Canada by 2023 ● Angel Activity Data : $100-200M invested annually across 400-500 deals according to NACO ● Regional Ecosystem Development : Angel groups emerged across Canada, including smaller centers
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