Government Operations committee  Sometimes it's easier to sell to foreign customers than to domestic customers because as Canadians we tend to be followers and not leaders. We've had numerous companies present to us where the CEO laments that he has to go stateside or elsewhere to demonstrate that the technology works, and then come home and sell it to domestic customers.

Government Operations committee  I didn't know when I could get it worked in. Thank you.

Government Operations committee  We certainly don't lag in entrepreneurship and the desire to grow successful entrepreneurs. This is not just a Canadian challenge. I was at a conference last week in Quebec City, where we update annually what's going on in the world of venture capital. Where we are having significant challenges is with the lack of venture capital, particularly in developed countries.

Government Operations committee  Mr. Wallace has heard presentations on initiatives that we've done at the finance committee over the years. In addition to direct investment by government, you have a couple of vehicles. You have BDC and EDC. They are active and can do more, particularly on the funding of funds.

Government Operations committee  I won't give you five reasons. I'll give you one comment, and it was based on the comments of the CEO of the firm that took advantage of this program when he attempted to explain to me that if the purchase by a government agency is based on the specifications that company provides, then that company is excluded from future sales to that department or perhaps other government departments.

Government Operations committee  I certainly understand where he is coming from. I haven't had direct involvement in that kind of a situation with one of the companies we're involved in, but I can appreciate clearly what he is recommending and supporting, for sure.

Government Operations committee  No, I'm not.

Government Operations committee  It certainly makes it more challenging from the perspective of an early-stage company.

Government Operations committee  I have a couple of comments. First of all, you're always looking for that first customer or reference customer. So yes, for sure it would strengthen the business case they would present to us. In addition, if the type of technology or product is focused on government agencies, whether they be security agencies or coast guards or DND, it's really important to be able to sell to your own home agencies, like the ones I just listed.

Government Operations committee  No, I'm not.

Government Operations committee  The only comment I would make is that you would really have to take a look at the structure of the membership of the CFIB. I don't know enough about it, but I'm not sure that many of their member companies would be companies that would necessarily sell to government. There are lots of Canadian manufacturers associations and other industry associations that would have members that would be applicable to this type of a program.

Government Operations committee  It's like a new company with a new product that it's trying to get into the marketplace. My understanding is that this is a fairly new initiative. It takes time to get the word out. You've got to put some resources behind that, in terms of marketing the program. Again, not to be critical, because I'm not sure what efforts have been made to date in promoting this particular program, but it doesn't happen overnight.

Government Operations committee  Thank you.

Government Operations committee  That wouldn't be a final determinant, but it would be extremely helpful if, in the presentation the firm makes to us, they can demonstrate conclusively that they have a reference customer. In an appropriate situation the reference customer might happen to be the government, whether it's DND or, in the case of the Newfoundland company, the coast guard.

Government Operations committee  Sure. I apologize. When you were asking me the question I was buying my friend here a drink, because I too was enthralled by the story and like the technology. Maybe he needs some investment. Afterwards I'll talk about the criteria and he can decide whether he's interested. On the sweet spot in our fund, you can't generalize, because various funds pick different aspects of the spectrum.