Especially in the technology space, “picking winners” should be left to venture capitalists, not governments, said Jack Newton, who leads the B.C.-based legaltech company. Provincial and federal governments should focus on improving tax and immigration policy to attract company founders, he said at a Toronto Tech Week event. (The Logic)

Talking point: Newton, whose company was last valued at US$5 billion and which previously raised one of the biggest private investments in Canadian history—lamented that foreign investors outnumber Canadians on Clio’s cap table. He said that Canadian backers have historically favoured deals with a U.S. lead investor, and have tended to offer lower valuations and demand stricter downside protections. Clio isn’t the only company finding that foreign capital is the path to major growth. The Business Development Bank of Canada warned this week that startups have to rely too heavily on foreign capital, even as Prime Minister Mark Carney hopes to generate more foreign direct investment.