What is ‘Labor-Sponsored Venture Capital Corporations – LSVCC’
A type of Canadian corporation created by a labor union that deals exclusively with providing venture capital. Unlike other venture capital corporations, LSVCCs are subject to tight regulations. The investment funds from LSVCCs are called labor-sponsored investment funds (LSIFs).
Explaining ‘Labor-Sponsored Venture Capital Corporations – LSVCC’
In Canada, LSVCCs, as a group, are the largest providers of venture capital. In fact, about 40% of venture capital is derived from LSVCCs. Canadian investors benefit from participating in LSIFs because not only are LSIFs eligible for RRSPs and other retirement plans, but they also yield both provincial and federal tax credits.
Further Reading
- The Changing Latitude: Labor‐Sponsored Venture Capital Corporations in C anada – onlinelibrary.wiley.com [PDF]
- Comparative venture capital governance: Private versus labour sponsored venture capital funds – books.google.com [PDF]
- Adverse selection and capital structure: Evidence from venture capital – journals.sagepub.com [PDF]
- Corporate finance and the governance implications of removing government support programs – www.sciencedirect.com [PDF]
- Public Policy and Venture Capital: The Canadian Labor‐Sponsored Venture Capital Funds – www.tandfonline.com [PDF]
- Venture capital and the structure of capital markets: banks versus stock markets – www.sciencedirect.com [PDF]
- Public economics gone wild: Lessons from venture capital – www.sciencedirect.com [PDF]
- Governmental venture capital for innovative young firms – link.springer.com [PDF]
- Government venture capital research: fake science and bad public policy – www.tandfonline.com [PDF]
