This development is seen in the position of the Fonds de solidarité and Working Ventures among the top three largest venture capital institutions in Canada in 1994 (see Figure 3). Indeed, at the beginning of 1995, these funds, at $1.3 billion and $500 million in assets respectively, were the first and second largest overall (as well, at over $80 million, Working Opportunity is almost certainly among the ten or so largest institutions in Canada).Endnote 12
This trend is further observed in the share of aggregate market resources, by investor type. At the end of the 1980s, labour-sponsored funds accounted for less than 10 percent of capital under management. This period was characterized by a burgeoning Fonds de solidarité and its leveraging of an above average share of resources and disbursements for Québec. Within four years, the share of capital held collectively by the funds quadrupled to 31.5 percent or just under one-third of all resources (see Figure 4).
In terms of sheer size, this made the funds second only to private independent firms as an investor type in 1993. All indications are that this strong market position will most certainly advance in the years ahead. CLMPC analysis of 1994 statistics prepared for the Association of Canadian Venture Capital Companies (ACVCC) suggests that in a national market grown to nearly $5 billion, approximately $3.30 in every ten dollars of venture capital was held by labour-sponsored funds (see Figure 5).
Moreover, the funds are making a positive contribution to the market's organization and direction. For instance, a major problem in Canadian venture financing in the past has been the cyclical volatility of capital flows which undermines the quantity and quality of long-term venture-backed deals. By attracting a new source of resources - the savings of households - labour-sponsored funds have created large, relatively stable pools of equity.Endnote 13