Sixty-six percent of Canadian respondents expect their industry to contract over the next five years, according to the 2010 Global Venture Capital Survey by Deloitte, Canada’s Venture Capital & Private Equity Association and other industry associations. However, a majority of VCs in China, India and Brazil are more optimistic and anticipate growth in the number of venture firms in their countries over the same period.

Are U.S.-based investors finding assets made cheaper by the global recession in Canada?

Yesterday, Bridgescale Partners, a Menlo Park, Calif.-based growth equity firm, announced it is expanding its focus and operations to include the Eastern United States and Canada. As part of this expansion, Bridgescale plans to open an office in Toronto this summer, and it is recruiting bodies for that office now.

“We view Canada as an area rich in attractive investment opportunities. With the support from the Canadian investment community, we intend to quickly duplicate the success we have had in Silicon Valley,” Robert Chaplinsky, managing director of Bridgescale, said in a prepared release.