A panel of Canadian venture capitalists gathered to speak this week to discuss the gap in understanding between entrepreneurs and investors.
Wind Mobile CEO-turned-VC Anthony Lacavera said during the panel, organized by the Empire Club of Canada, that young Canadian entrepreneurs often possess “unrealistic expectation of values." However, VCs are also at fault for Canada's mediocre startup funding system: investors need to overcome the nation's "culture of risk aversion” to truly succeed, according to Lacavera.
Other panel members included John Ruffolo of Omers Ventures and Amar Varma of Xtreme Labs, who unanimously agreed that Canada's startup financing ecosystem is in need of improvement.
Of course—and the panel was not shy of pointing this out—that raising venture capital is merely one of multiple options, and not always the best one. “Venture capital is just one source of financing—and it’s the most expensive source of financing,” noted Ruffolo.