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Issues Surrounding Venture Capital, Initial Public Offering (IPO) and Post-IPO Equity Financing for Canadian SMEs

Prepared for:
Small Business Policy Branch
Industry Canada

Prepared by:
E. Wayne Clendenning & Associates

March, 2001

Table of Contents

Executive Summary
Introduction

The Nature and Significance of Equity Financing for SMEs

Section I – Venture Capital Equity Financing
Overview of the Venture Capital Markets in Canada and the U.S.
Issues Surrounding Venture Capital Equity Financing
Section II – Initial Public Offering (IPO) Equity Financing
Overview of IPO Markets in Canada and the U.S.
Issues Surrounding IPO Equity Financing
Section III – Selection of Advisors
Costs Factors
Specific Issues
Section IV – Post-IPO Equity Financing
Overview of Post-IPO Equity Financing
Regulatory Requirements
Size of Post-IPO Share Issues
Section V – Issues Surrounding Post-IPO Equity Financing
General Issues
Specific Issues
Conclusions
Appendix A – Statistical Overview of the Canadian Venture Capital Market

Appendix B – Statistical Overview of the U.S. Venture Capital Market

Bibliography



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