Canadian tech companies have entered uncharted waters, with a range of factors threatening to produce a liquidity crunch for many of them.

For years, the tech sector enjoyed record volumes of venture capital investment fueled by low interest rates, an inflow of foreign and corporate investment, and the collective desire to create a vibrant tech ecosystem in Canada. As the economic tides have changed, with climbing interest rates and a looming recession, tech companies are facing an increasingly tough fundraising environment.

Introduction

Towards the end of 2020, while businesses were reeling from the challenges of grappling with a global pandemic, the end of the Brexit transition period and LIBOR transition, the Law Commission published a paper analysing the current law underlying intermediated securities - Intermediated securities: who owns your shares? A Scoping Paper.