The Globe and Mail reported Monday that VC investments dropped in the third quarter. Thompson Financial and the Canadian Venture Capital and Private Equity Association claim that VC investment was down over 32 percent from the second quarter.

Notably, non-Canadian VC investment in our markets grew by 67 percent over a year ago. That's not surprising. Given that Canadian technology investments provide some of the best returns anywhere, outperforming their U.S. counterparts, what smart investor wouldn't want to pick up the opportunities local VC firms are all too willing to ignore.

Are we moving towards 1996 levels of VC investment? Will pulling the plug on Income Trusts result in more early stage investment in Canadian companies? We can only hope.