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Canadian VCs should invest more in the US

May 28, 2012

Nobody should start a VC fund in Canada today unless they want to work as hard or harder than any startup founder they will fund.  It is no longer a job for ex-bankers and management consulting dropouts. The job is hard, mostly thankless, and more competitive than ever.

Great conversation on StartUp North and other posts about the role of VC in Canada. Central to the argument is that life is getting more competitive in Canada for the best deals, with top Canadian companies heading south for funding. So Canadian VCs need to hustle more to get in with the best companies.

I agree, I would add that they need to hustle more outside of Canada.

With changes in the law, it is even easier for US VCs to head north for some shopping. My view is that VCs should follow suit and like start-ups, should start heading south for deals.

Rightly or wrongly, Canadian psychology is that you can’t be successful in Canada unless you’re successful first in the US. If Canadian VCs had some killer US-based deals in their portfolios, they would undoubtedly get more cred (and experience, and know how, and contacts etc.) that would serve them well in Canada.

Why is the Ontario Teacher’s Pension Plan considered an awesome world class investor? Because they are an awesome world class investor.

VCs should learn from the Teachers.

» Canadian VCs are being cut loose, and that’s a good thing | StartupNorth.

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One Comment
  1. Been thinking this for a while. Glad to hear it from someone much smarter than I.

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