Since the big meltdown of '01 the venture-capital community has had hard times almost everywhere - not only in Canada. The VC industry has wallowed for a few years but according to Jim Breyer, a partner with Accel Partners in Palo Alto, investment fundamentals are improving. Still, raising fund capital is tough especially for the smaller players.

With a new focus on quality investments VCs are finding out that the key to success is maintaining a generalist's approach. Partners need the skill to grasp the entire opportunity landscape from entertainment to nanotechnology to clean technology. Rob Chandra of Bessemer Venture Partners says, "It's not enough anymore to focus on one area if you are going to produce top-tier investment returns."

FInd out more about the comeback of venture capital in Roger Thompson's article for the Harvard Business School bulletin.