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My Profile Top News Reuters top ten news stories delivered to your inbox each day. 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A government spokeswoman said the initiative will target companies in the clean technology, life sciences, and digital media and communications technology sectors. An official announcement is expected Wednesday afternoon. News of the plan comes about a month after a report that found that financing activity in Canada's venture capital market dropped to its lowest level in 12 years in 2008 as the economic downturn choked the flow of funds to small start-up companies. Venture capital financing is the lifeblood of many early-stage companies. Without investors willing to shoulder the relatively high risk associated with start-ups, such companies can flounder long before delivering a product to market. Last year, a total of C$1.3 billion in venture capital was invested, down from C$2.1 billion in 2007, according to the report by Canada's Venture Capital and Private Equity Association and news and data company Thomson Reuters. Aside from the drop in value of financings, the number of companies that received capital was also lower, falling to 371 from 412 in 2007. ($1=$1.27 Canadian) (Reporting by Wojtek Dabrowski; editing by Peter Galloway) © Thomson Reuters 2009 All rights reserved Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Dell unveils world's thinnest laptop also on reuters Blog: What has the average value investor been buying? Investors to Starbucks: Show me the savings Video Video: Bear Stearns: House of Cards More Technology News IBM in talks to buy Sun Microsystems Apple unveils App options in iPhone software peek Google updates Chrome Web browser to boost speeds Sun Micro takes on Amazon in cloud computing Marvel, startup ink online gaming deal More Technology News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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