Yes, it's an issue that we see. In a sense, it's almost a natural kind of trend that you see. A lot of the market for Canadian enterprises is outside of Canada. Most of the companies that will get venture capital have to have a thesis that they have a global plan to succeed. We're a smaller economy, relatively, or a small market in terms of customers. In a sense, there's a big magnet in the U.S. You have huge pools of talent, huge pools of capital.
We need to tilt the balance when it comes to incentives to retain some of those components within our borders, whether that is talent or capital. Then, as government, you have many tools that are available to you. We've looked at things like SR and ED, for example.
There is a review ongoing. We're expecting some developments there. We're looking at maybe making some of these programs a little bit more targeted, making them specifically available for companies that are at a specific kind of growth phase. If you're at your third fundraise, for example, you're probably a flight risk already, and you probably already have a lot of American dollars in your investment. Targeting some companies that are successful, that are aligned with some of our priority sectors, would be clever policy.
Then there are things like incentives. Today we've talked about perhaps doing some tax incentives or redirecting some of these programs in a way that incentivizes those Canadian companies to stay. I do think that they're all valuable, but at the end of the day, the tone is from the top. You have to have a real strategy that makes Canada a very appealing place to build a business.
A lot of these entrepreneurs want to stay, but we continue, in a sense, to make it easier for them to make the decision to leave. That's really where the focus of our efforts has to be placed. For example, capital gains taxation—I know I say that over and over—is really, truly at the core of the risk-reward balance in our sector. You can tweak with some tax incentives, but at the end of the day, that is probably the strongest signal that you can send to the market.
For an entrepreneur or an investor to decide if they build a company or grow their company here, those are the kinds of questions that we're hearing every day.
Yes, it really has to be an almost more strategic approach for that.