You would think it would be that simple, but you really need to look at it from the investor's point of view: What is my ROI if invest my money this way instead of that way? More unattractive investments won't help the tech startup community grow.

My suspicion[1] is that the thing that will really fix this is changing the way that investors are taxed on their capital gains and losses.

[1] Been a while since I lived in Canada, but IIRC capital gains and losses are not taxed like they are in the US.