A new report from the Canadian Venture Capital and Private Equity Association (CVCA) shows that the Canadian VC industry is in decline. VC investment between 2003 and Q3/08 dropped by 35% compared to the US industry which increased 17% in the same period. "Fund raising is shrinking and the investment pace by Canadian funds is contracting," states the report. "The turmoil in financial markets which started in 2008 will only make the venture capital crisis more severe ... For the whole ecosystem, this is the worst time to run out of cash." Subsequent to the report's research, two key VC funds have suspended investor redemptions until market conditions improve. VenGrowth I and II and the Canadian Medical Discoveries Fund have frozen investments until later this year....