History
The idea behind LSVCCs was first proposed in the Canadian province of Quebec in 1982. The province was in the midst of a recession and the lack of capital in small and mid-sized companies had caused numerous bankruptcies.
In response, the Quebec Federation of Labour proposed a "solidarity fund" at a provincial economic summit conference in 1982 to help the province create a locally-controlled healthy and sustainable economy. The intention was to lure venture capital to smaller Quebec firms.
This new type of fund slowly began to spread across the rest of Canada during the 1980s. But it wasn't until the late 1990s that LSVCCs became truly noteworthy outside Quebec, thanks in equal part to generous tax breaks from federal and provincial governments and attractive returns to investors. So far in the 2000s, returns have been less impressive, due in part to the bursting of the technology bubble. Unfavourable Government rule changes regarding LSVCCs have also been an important reason for this turn.
Labour-sponsored venture capital corporations, as the name suggests, must be "sponsored" by a labour unions. This sponsor is able to appoint members to the fund's board of directors (but not the investee's board of directors).
Read more about this topic: Labour-sponsored Venture Capital Corporation
Famous quotes containing the word history:
“The history of this country was made largely by people who wanted to be left alone. Those who could not thrive when left to themselves never felt at ease in America.”
—Eric Hoffer (1902–1983)
“Three million of such stones would be needed before the work was done. Three million stones of an average weight of 5,000 pounds, every stone cut precisely to fit into its destined place in the great pyramid. From the quarries they pulled the stones across the desert to the banks of the Nile. Never in the history of the world had so great a task been performed. Their faith gave them strength, and their joy gave them song.”
—William Faulkner (1897–1962)
“The history of men’s opposition to women’s emancipation is more interesting perhaps than the story of that emancipation itself.”
—Virginia Woolf (1882–1941)