Based on data from the ACVCC's annual profile, CLMPC research estimates that the fund contribution to the number of new and follow-on venture investment - totalling over 400 in 1994 - was 15 percent. In dollar terms, the contribution was even more substantial. Second only to private independent firms, the share of labour-sponsored funds of $460 million invested in 1994 was 28 percent (see Figures 7 and 8). Furthermore, the funds were a critical source of increased aggregate venture investment in 1994, as compared with 1993.^{Endnote 16}

Again, this position will certainly advance in forthcoming years as upwards of fifteen new and emerging labour-sponsored funds begin launching investment portfolios. In fact, as of the second half of 1995, the Crocus Fund and six of the newest Ontario funds (e.g., the Canadian Medical Discoveries Fund) were approving early initiatives at a brisk pace.

Beginning with the Fonds de solidarité, labour-sponsored funds have adapted a set of policies, programs and structures for the purpose of reinforcing effective venture investing, as outlined earlier. For instance, most funds conduct a strategy of wide diversification of investment portfolios to balance risk. CLMPC research has discovered that, as a result, several funds, such as the Fonds de solidarité and Working Ventures, finance a wide variety of business initiatives, including start-ups, early stage development projects, acquisitions, turnarounds and restructuring deals. This approach, though common today, is at odds with historical trends whereby start-up and early stage targets received a smaller share of resources than, say, mid-market deals (e.g., expanding, mature firms).^{Endnote 17}

Another illustration of prudent policy is the long-term shareholding of some funds. For instance, individual investors keep their shares in the Fonds de solidarité until the age of retirement. Where such policies translate into actual long-term transactions, it is likely that certain labour-sponsored funds are among the most patient investors in the venture capital market. Fund shareholding of lengthy duration - say, above five years - also contributes to overall market stability, as investment patterns are closely linked to secure pools.

On average, the leading funds tend to have investment project lifespans of between four and nine years. Some funds may well stay with certain investee firms even longer. The Fonds de solidarité, for example, will often support individual rescues and restructurings for ten years or more.

Moreover, while labour-sponsored funds will locate, negotiate and structure deals on their own, frequently where other venture capital institutions will not go, they are also disposed to leveraging financial syndication. For instance, the Fonds de solidarité has for several years conducted extensive co-investments with Québec-based institutions, such as the Caisse de dépôt et placement, as well as institutions overseas (e.g., the fund occasionally co-invests with French institutions). The early investments of Working Ventures and Working Opportunity also give evidence of joint activity with venture capital institutions and other equity partners, both domestic and international.