VC investment continues downward trend

Canadian venture capital investment dropped 26% in Q3/08 compared to the same period last year, continuing a downward trend that's almost certainly going to accelerate once data covering the financial meltdown are reported for Q4. Just $372 million in VC was invested nationally in 123 companies in the quarter, down from $501 million in Q3/07. That brings the total for the first three quarters to just over $1 billion, down 33% from the first three quarters in 2007. Ontario received $163 million for 36 companies (off 43% from Q3/07) while 58 Quebec-based firms received $110 million. British Columbia was the relative bright spot, attracting $79 million to 17 companies, up 13% over Q3/07. The data were compiled by Thompson Reuters for the Canadian Venture Capital & Private Equity Association. The CVCA has developed a four-point commercialization support program to try to increase funding to high-growth small firms….