Released on April 23, 2004
Saskatchewan's two labour-sponsored venture capital funds (LSVCF) continue to buck a national trend with increased sales.Capital raised by provincial pool funds under the Invest in Saskatchewan program grew by 14 per cent over last year. The two fund managers, Golden Opportunities and Crown Ventures, raised more than $21 million for the 2003 taxation year, an increase from $18 million raised for 2002.
The Invest in Saskatchewan program, launched in December 2002, encourages residents to keep their money at home by investing in labour-sponsored venture capital funds. The funds are invested in Saskatchewan-based small and medium-sized businesses that demonstrate potential for growth.
"Saskatchewan residents want to see their investments at work in the province," Industry and Resources Minister Eric Cline said. "It's a great program all around. The funds build companies and jobs and contribute to building a stronger economy."
According to a February 2004 report published by Macdonald and Associates, a Toronto-based firm that tracks Canadian venture capital companies, LSVCF investments in Canada have decreased annually since 2001. However, Saskatchewan LSVC activity has increased over the last two years.
To date, Saskatchewan's two pool funds have made a total of $32.5 million in total investments in 40 companies. In the last year they have made 10 new investments and nine follow-on investments for a total of $14.5 million.
Investors not only see their money grow locally, they are also eligible for a 35 per cent tax credit and RRSP deduction.
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For More Information, Contact:
| Bob Ellis Industry and Resources Regina Phone: (306) 787-8277 |