The purpose of the study is three-fold: (i) to demonstrate that governments at the federal and provincial levels are extensively involved in venture capital; (ii) to examine the reasons behind this activity and the consequences that flow from the plethora of agencies, programs and tax incentives that have mushroomed over the years; and (iii) to recommend ways in which government might better organ [...] In the 2016 budget, the newly elected federal The reason behind the variety of policy vehicles Liberal government re-established the tax credit has to do with the lack of certainty surrounding for investments in labour-sponsored venture capital the most effective approach to achieve the twin corporations (LSVCCs) – a tax credit that had been objectives of channelling more capital to high slated fo [...] Governments have also sought to assimilate Quite apart from the perceived deficiencies of the lessons from proximity to the US venture capital venture capital industry in particular and of the industry, the world’s largest and most successful 2 The website of the National Capital Venture Association in the United States lists close to 80 firms in its corporate venture group, compared with less tha [...] In that vein, I suggest that, in setting policy Accordingly, I suggest that governments disclose objectives and measures of success regarding their the investment mandates of the four funds-of- intervention in venture capital, governments make funds supported by the VCAP, including the target known: number of venture capital funds in which the • an outline of the conditions for exiting or for fund [...] In addition, which should contain details on: determining the magnitude of financial support to • the number of venture capital funds in which the venture capital would make it easier for Canadian funds-of-funds have invested, and the number, governments to gauge their overall commitment stage and sector of enterprises in which they, in to venture capital over time, as well as relative to turn, ha