Thursday, October 25, 2007

What's Next for VCs?

Trolling through the junior exchange listings in Toronto might give you a clue. Take a look at Echelon Capital, whose listing was accepted last month by Toronto's Venture Exchange. The shell company raised a minimal $300,000 to go out and look for a business to acquire. Some have predicted that the exchange will become (a) a good parking lot for old portfolio companies that can re-purposed in the public markets, by spinning off related businesses and (b) will give new life to funds whose management fees are running low. Time will tell.

The directors and officers of Echelon? The present and former partners of Mclean Watson, the Toronto VC behind Flonetwork and assorted other investments during the local dot-com boom. I don't know what their underlying strategy is, but you can be sure I'm going to watch with interest. Smart group of renaissance guys who ohave been known to enjoy both bow hunting and baroque music.

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