Ebb & Flow

Canadian law has made it very difficult for U.S. venture firms to invest in Canadian biotechs, a problem that has frustrated undercapitalized startups for years. That could be remedied under a provision of the proposed federal budget, which the House of Commons is expected to pass within the next week.

U.S. venture firms investing in Canadian companies currently have to set up alternative investment vehicles like exchangeable share structures to avoid the onerous alternative under which the U.S. firms would need to obtain clearance certificates from each LP, disclosing their identity and treaty status...