Seed Investing is Less Risky
March 26, 2007 by Mark Evans
Filed under Business
One of my long-time frustrations with the Canadian venture capital business is the lack of support for early-stage start-ups, although every time I put forward this theory to a VC, they usually argue otherwise. Nevertheless, it’s my belief that not enough early-stage ideas get financed in Canada, which means the pool of later-stage companies never materalizes. Look at the dearth of Web 2.0 start-ups in Canada, who would kill for a $250,000 series A round. Fred Wilson (aka A VC and a venture capitalist with Union Square in New York) has an interesting theory that seed investing is actually less risky than later stage. It makes sense to me!
I can’t agree with you more. I work for an internet startup and searching for funds in Canada has gotten us NO WHERE! We have only had success in the US. They welcome you with open arms as long as you have your head on straight and present yourself properly.
Here in Canada they are so closed minded to new possibilities. It’s a real burden on our country. Why do you think you always head of a great internet startup from Canada that jumped ship? Because here we don’t support our own.
Mark, the risk averse problem is inherent across many Canadia industries. Just look at music, movies or trying to get a loan from a bank.
Always has been, always will be.
Best,
George