Venture capital seen tightening up

he economic crisis is one of credit and confidence. Companies face a double whammy: traditional financing - from banks - is difficult and venture capital dispensing crucial seed money has never been abundant in Canada at the best of times.

We asked professor Stewart Thornhill, executive director of the Pierre L. Morrissette Institute for Entrepreneurship at Richard Ivey School of Business at the University of Western Ontario to answer a few questions about the venture capital markets in Canada.

Q: What's happening in the Canadian venture capital industry in the context of the current financial crisis?