The president of the Canadian Retail Venture Capital Association (CRVCA) has warned the Ontario government that if it doesn't restore the Labour Sponsored Investment Fund (LSIF) tax credit and create a new retail venture capital tax credit, the province's innovation agenda is at risk. The Ontario government announced in September 2005 that it would phase out LSIF tax credit. Testifying at Ontario's Standing Committee on Finance and Economic Affairs, Les Lyall, president of CRVCA and a senior VP with GrowthWorks impressed on members the current situation. "Total venture capital available in Ontario for early stage new deals decreased 92% between 2000 and 2006. And last year, only 41 companies received first time financing compared to 187 companies in 2000."

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