Labor-Sponsored Venture Capital Corporations (LSVCC)
What are Labor-Sponsored Venture Capital Corporations (LSVCC)?
How Do Labor-Sponsored Venture Capital Corporations (LSVCC) Work?
Labor-sponsoredissue labor-sponsored investment funds (LSIFs). Investors purchase shares of an LSIF, and the LSVCCs subsequently invest the proceeds in a range of high-growth, high-risk venture capital projects. LSVCCs are strictly regulated by the Canadian government, and all venture capital activities must meet specific requirements.corporations (LSVCCs)
For example, suppose Venture ABC is an LSVCC. ABC issues 1,000 shares of LSIFs at $2,000 each. It invests the $2 million ($2,000 x 1000 shares) with its entrepreneurial clients as venture capital. Venture ABC's LSIF shares fluctuate in value based on net gains or losses that its venture capital projects experience over time.