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A change to Canadian tax law has made it significantly easier for foreign companies hoping to invest in Canadian startups. According to the Washington Post, the new law will likely lead to increased U.S. venture investments in Canadian startups "and make Canada less of a leper colony for tech entrepreneurs".

"The change allows foreign investors in most Canadian startups to avoid "literally hundreds of pages of documents" to be filed and processed on a sale of a startup, sometimes by each limited partner in a venture fund.designed to spur U.S. venture investments in Canadian startups and make Canada less of a leper colony for tech entrepreneurs.The change allows foreign investors in most Canadian startups to avoid "literally hundreds of pages of documents" to be filed and processed on a sale of a startup, sometimes by each limited partner in a venture fund."

"The change allows foreign investors in most Canadian startups to avoid "literally hundreds of pages of documents" to be filed and processed on a sale of a startup, sometimes by each limited partner in a venture fund. That burden meant that most venture firms simply ignored the Canadian market, says Deloitte:A 2007 survey by Deloitte and Canada's Venture Capital & Private Equity Association (CVCA) of 528 VCs from around the world found."

"I predict that over time this farsighted tax legislation will help propel Canada's extraordinary technology into global industry leadership in numerous markets, and will likely be viewed in the future as a defining moment for the Harper government in Canadian innovation," says Stephen Hurwitz, a partner at U.S. law firm Choate Hall & Stewart.That may be a bit optimistic, but the tax change is a nice start."

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original source Washington Post