Early stage technology companies in Canada, including health IT, have quite a few opportunities for angel and seed stage investment. But an article in The Globe and Mail points to a chasm at the mid level stage. Venture capital firms positioned to spend $10 million to $20 million are relatively few and far between in Canada. That could signal more opportunities for investment by U.S. firms.
The article warns that the stage is set for a capital crunch. “When startups begin earning revenue in the millions and need growth funding, they can’t self-finance, the funnel narrows and fewer financiers are still in the ring.”
