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 greatest honor history can bestow is that of peacemaker.”
—Richard M. Nixon (1913–1995)
“History ... is, indeed, little more than the register of the crimes, follies, and misfortunes of mankind.
But what experience and history teach is this—that peoples and governments have never learned anything from history, or acted on principles deduced from it.”
—Georg Wilhelm Friedrich Hegel (1770–1831)
“The history of literature—take the net result of Tiraboshi, Warton, or Schlegel,—is a sum of a very few ideas, and of very few original tales,—all the rest being variation of these.”
—Ralph Waldo Emerson (1803–1882)