The 2016 Budget is just out and concerns from entrepreneurs and investors were heard loud and clear. Despite Trudeau's election promises to increase the taxation on stock options, the government has decided to not touch this innovation lever. “I heard from many small firms and innovators that they use stock options as a legitimate form of compensation, so we decided not to put that in our budget,” Finance Minister Bill Morneau told reporters. Asked if his government might increase options taxes in future budgets, he said: “It’s not in our plan.”

Similar to the US, startups and high-growth companies use stock options to offset expensive salaries in order to attract and retain high-caliber employees. At McRock, we are breathing a huge sigh of relief as a change to the stock option tax treatment would have instantly made Canadian tech companies unable to compete on the global stage.

Another piece of good news from the 2016 budget, was the reinstatement of the 15% federal tax credit for Labour-Sponsored Venture Capital Corporations (LSVCC). This is a u-turn in the previous government's plan to wind down the federal LSVCC tax credit. In provinces like Quebec, which still have an active Federal and Provincial LSVCC tax credit program, this ensures a return of investment capital to the innovation ecosystem. Congratulations to our LSVCC friends. This is a long time coming and a big win for the Canadian innovation eco-system.

Four years ago today a McRock star was born. On March 1st, 2012 we incorporated McRock. Four years later we would say things are going great. However, it took a ton of grit and perseverance to get us here and a little brain damage along the way.
 
As venture capitalists, we meet a lot of people who talk to us about quitting what they do today, to do something they are passionate about tomorrow. The reality is that many people let dreams remain dreams - they never take the leap into entrepreneurship. 

Occasionally we watch people actually go for it “all in”. For this we have the utmost respect. To prove we "get it" even as investors, we have documented our entrepreneurial journey. We did it so we would never forget and so that we could show our humility and appreciation for the path and lessons of an entrepreneur.
 
How do you start? That’s easy, you pick a simple task and you do it. Pick a name, create a logo, or rent an office – anything.
 
When do you start? Right now. If you have it in you, you start right now because there is no perfect time. Just big balls.
 
How do you keep going? It will get hard, tough, and seemingly impossible. Now this is the only question that real matters. And here is the only answer that matters - Passion & Grit.
 
Passion & Grit - the recipe for never giving up. Zero to hero stuff. Those that want it more, work harder and those that work harder eventually win. You can’t beat somebody that just won’t give up. Not to mention that the harder you work the luckier you get.
 
However the secret to greatness requires more than just perseverance against adversity. It requires a contagious level of energy and fun. This way you infect others along your journey.
 
Six years ago we recognized a massive new technology wave was coming – the Industrial Internet of Things or, as we call it, the IIoT. Four years ago we started McRock to get ready for it.  One year ago we succeeded to launch a venture capital fund. Today we have $65 million under management and we are just getting started. We are passionate about entrepreneurs and building companies. We are excited about how profoundly the world will change in the digital industrial era. We hope this might inspire you today - McRock On.