INCREASED ACTIVITY IN VENTURE CAPITAL FUNDS

Released on March 20, 2003

This RRSP season, Saskatchewan residents chose to see their investments work at home by contributing more to labour-sponsored venture capital funds (LSVCFs).

Capital raised by Provincial pool funds under the Invest in Saskatchewan program grew by 37 per cent over last year. Saskatchewan's two LSVCF managers, Golden Opportunities and Crown Ventures, raised more than $16 million for 2002, an increase from $12 million raised for 2001.

The Invest in Saskatchewan program, launched in December 2002, encourages Saskatchewan residents to invest in labour-sponsored venture capital funds. These funds are then invested in Saskatchewan-based small and medium-sized businesses.

"This renewed activity demonstrates that the people in Saskatchewan have confidence in the strength of our economy," Industry and Resources Minister Eric Cline said. "Local established businesses will expand and create more jobs because of access to increased capital. The funds will grow and everyone will prosper."

According to Macdonald and Associates, a Toronto-based firm that tracks venture capital companies across Canada, Saskatchewan was the only province in Western Canada to experience stepped-up LSVCF investment activity this past year. The other provinces saw an overall reduction in disbursements and financings.

The March 2003 Macdonald report also indicated that after several years of near flat industry activity, the trend lines were positive for 2002. Twenty-four Saskatchewan-based firms secured $47 million in investment by the end of December, representing a gain of more than three times the $14 million invested in seven companies in 2001. The growth is attributed to the emergence of new, locally headquartered investor groups and funds.

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For More Information, Contact:

Bob Ellis Industry and Resources Regina Phone: (306)787-8277 Email: rellis@ir.gov.sk.ca