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What is a Labour-sponsored venture capital corporation?

Labour-sponsored venture capital corporation

A Labour-sponsored venture capital corporation is a type of Canadian corporation created by a labour union investing in small to mid-sized companies. LSVCCs are sometimes referred to as labour-sponsored investment funds (LSIFs) or simply retail venture capitals (RVCs).

Where have you heard about Labour-sponsored venture capital corporations?

The idea of Labour-sponsored venture capital corporations was first introduced in the Canadian province of Quebec in 1982. At the time, the province was in a recession, with the lack of capital in small and mid-sized companies causing numerous bankruptcies.

What you need to know about Labour-sponsored venture capital corporations.

Often abbreviated to LSVCC, a Labour-sponsored venture capital corporation is subject to tight regulations. As the name suggestions, LSVCCs must be sponsored by a labour union, with the idea of these corporations being to stimulate the Canadian economy and increase employment. In Canada, these corporations are the largest providers of venture capital, creating roughly 40%. Money invested in an LSVCC is distributed among a number of businesses. As these businesses tend to be new and small, they would be considered risky investments by themselves.

Find out more about Labour-sponsored venture capital corporations.

Explore similar terms to LSVCCs by reading our definition of venture capital.

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