A $5 million investment made by the Nova Scotia government in women-focused venture firm Sandpiper Ventures has created a stir in the province, with proponents on both sides arguing over the best way to invest in women.
Earlier this month, outgoing premier Stephen McNeil announced the Government of Nova Scotia would contribute $5 million to the $20 million fund Sandpiper is currently raising, which is focused on investing in women-led startups.
“Women’s issues deserve drastically higher investment across all parts of society.” – Jevon MacDonald, founder of Manifold
McNeil cited the disproportionate effect of the COVID-19 pandemic on women as motivation for the investment, creating a need to invest in women-led entrepreneurship. Some child care advocates have taken issue with that reasoning.
The public discussion has included not only child care advocates and organizations, but Nova Scotia NDP House Leader Claudia Chender, who has argued that the money is better spent elsewhere.
A number of child care advocates that recently spoke with the CBC pointed to a need for investment in child care in Nova Scotia, arguing its lack as one of the main reasons women have exited the workforce amid the pandemic, and that it remains a big obstacle to them returning. Some called for the $5 million contributed to Sandpiper to be spent on child care instead.
“To put it into a venture capital fund is not only out of touch with what parents need, it’s actually pretty insulting to all of the women in this province who run home daycare businesses,” said one such advocate, Hannah Munday, a former private daycare operator.
Chender has also spoken out publicly, both social media and with other media outlets, echoing those calls.
You know what would keep more women in the workforce than giving $5 million to a Venture Capital fund? Affordable childcare.
VC is great, women-led VC is great. It will not address the disproportionate impact of COVID on women. #nspolihttps://t.co/vOPMpm6AST
While the NDP House Leader said the acknowledgment of a gender divide emphasized by COVID-19 is positive, she questioned whether investment in the private sector and startups actually benefit Nova Scotians.
One organization, Solidarity Kjipuktuk / Halifax, an anti-capitalist group in Nova Scotia, put out a press release demanding that newly-appointed premier Iain Rankin rescind the $5 million, calling it a “corporate giveaway.”
Members of the country’s tech community have spoken out against such arguments, however, calling out the idea of pitting the two issues against each other. Members of Canada’s tech ecosystem have stepped in to argue that it should not be a question about investing in child care or venture capital, but both.
This isn’t an either / or,” wrote Jevon MacDonald, founder of Manifold and co-founder of tech community group StartupNorth, via Twitter. “Women’s issues deserve drastically higher investment across all parts of society.”
Michelle McBane, managing partner of women-focused VC fund StandUp Ventures, questioned whether the investment would have been a topic of discussion if Sandpiper did not have a women-focused investment thesis.
The province has contributed much more to male-led VC without criticism. It is not either/or, we need to support women’s innovation and women’s ideas AND provide access to high quality childcare. We need to start to see childcare as a collective issue not a women’s issue.
Speaking with BetaKit, Sandpiper co-founder and managing partner Rhiannon Davies lamented some of the criticism. She acknowledged the need to invest in child care and the barrier it still creates for women in the workforce, but noted the importance of investing in women-led innovation and entrepreneurship as another important way to empower women in the workforce. Davies went further, expressing frustration that child care was being pitted against investing in a women-focused VC fund as two women issues, calling child care a societal issue.
The COVID-19 pandemic has highlighted the child care issue across Canada, disproportionately pushing women out of the labour force.
A successful recovery from this labour diaspora is dependent on many factors coming together. The Ontario Chamber of Commerce noted last fall the need for flexible work arrangements, affordable child-care offerings and training for new jobs, calling them all key to helping women return to the workforce.
Investing in women-led businesses is another way to further economic freedom and empowerment for women. In recent years, a number of women-focused venture funds have popped up to do just that. In Western Canada, women-led group The51 is raising a fund to invest in female-led companies and McBane’s StandUp Ventures has been doing so since 2017. BDC’s Women in Technology Venture Fund is another such fund.
The Government of Canada’s Women Entrepreneurship Strategy also highlights the power of such investments on the economy, noting the potential to add $150 billion in incremental GDP in Canada by 2026.
Davies told BetaKit Sandpiper’s position is that there is a need for both investment in child care and venture capital in order to create overall structural improvements for women in the workforce.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
