Ecosystem Approach ● Address the entire capital continuum rather than isolated segments ● Recognize the interdependence of funding stages from pre-seed through growth Private Sector Alignment ● Design policies that work with market forces rather than replacing them ● Focus on mobilizing private capital alongside public investment ● Encourage co-investment fund models—where government or institutional actors invest alongside private angels and seed-stage funds—as proven in regional examples such as Build Ventures in Atlantic Canada. Non-dilutive public funding programs (e.g., grants, subsidies) play a critical role in de-risking early-stage ventures, making them more attractive to both angel and institutional capital. Tax-Based Incentives for Angel Investment ● Consider federal-level tax incentives specifically targeting angel investors ● Evaluate models like the U.S. QSBS exemption and UK's SEIS/EIS programs Regional Balance ● Develop approaches to address geographic disparities in access to early-stage capital ● Support formation of angel networks in underserved communities and regions Without inclusive national programs, there is a risk of investment leakage—where investors in smaller provinces or local ecosystems reallocate capital toward perceived “stronger” opportunities in major hubs. Nationally harmonized incentives can reduce this disparity and retain capital locally. Long-Term Policy Stability ● Provide predictable, long-term policy frameworks to build investor confidence ● Avoid frequent changes to tax incentives and support programs Canada’s risk capital framework must be rooted in long-term thinking. Innovation returns follow exponential—not linear—curves, and policy must be calibrated to match.
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