The Ottawa Business Journal has some bad news for you if you are an early-stage company looking for venture investment in Ontario. Turns out that 2007 will be about the same as 2006 - dry, dry, dry.

Most technology observers feel that the local venture capital community will continue to support their maturing portfolio companies in anticipation of exit opportunities, while shying away from new, riskier investments until they achieve some good returns.

"Based on historical funding levels (other than the bubble or an anomalous Q2 2005), my expectation would be to see investment on the order of $200 million-$250 million in 2007," said Ottawa Capital Network manager Dave Scollon.

"I haven't seen any fundamental shift in momentum that would lead me expect otherwise."

We've talked at length over the last year why the Canadian venture market is so abysmal for early-stage companies. Suffice it to say, we are not California or even British Columbia.

Want some good advice? Develop products in a sector that will allow your young company to bootstrap its way to funding that great R&D project. Then, go west and find financing there. DO NOT SPEND MUCH TIME AND EFFORT searching for capital in the Ontario market. Odds are that if you do look here, you'll be disappointed and miss opportunities to make money other ways.

Those are the facts, just the facts. The early-stage funding wheel will come around again but it will not be this year. Until it does, build your company and prepare an exit strategy.