Canada Doesn’t Always Need Another Government Fund
One of the strongest arguments for FTS-Tech is something we don’t talk about enough:
Speed.
A Globe and Mail feature first published in February and republished by PearTree Canada highlights what it calls the “velocity” of Flow-Through capital.
The existing system requires issuers to put capital into qualifying expenditures within prescribed periods. PearTree argues that this can move private money into actual economic activity faster than creating and administering a new government investment fund.
That matters for technology.
A startup doesn’t experience a capital shortage as a policy debate.
It experiences it as payroll.
A product launch.
A clinical milestone.
Another three months of runway.
A competitor getting to market first.
Capital that arrives two years from now may be useless to a company that needs it today.
That’s one reason FTS-Tech deserves serious consideration.
The model doesn’t require government officials to build a venture portfolio.
Government defines the rules.
The market identifies opportunities.
Private investors provide the risk capital.
Companies put that capital to work.
Flow-Through Shares already demonstrate that Canadian tax policy can create a direct connection between an investor incentive and qualifying economic activity.
That’s not merely a mining lesson.
It’s a capital-formation lesson.
And Canada’s technology startups could use one.
Read the original PearTree / Globe and Mail feature
Read the FTS-Tech proposal and Add Your Voice
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