BetaKit

The two Canadian cities rising in Startup Genome’s global ecosystem rankings

Alex Riehl — Mon, 19 Jun 2023 09:00:10 +0000

Welcome to BetaKit’s startup stories of the week! Here, you will find the week’s most important news, features, and editorials published on BetaKit.

If you prefer this update hit your inbox every week, make sure to subscribe to the BetaKit Newsletter using the form at the bottom of this page.

Latest Funding, Acquisitions, and Layoffs

VAN – Vanhack – $3M (read more)
VAN – GameOn – $1.7M (read more)
CGY – Kibbi – $1.1M (read more)
CGY – OneVest – $17M (read more)
TOR – Micharity – $7M (read more)
TOR – Ontario Genomics unveils eight startups receiving $150K (read more)
HFX – QuickFacts – $1.13M (read more)

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The BetaKit Podcast

APPLE'S VISION PRO WON'T MAKE THE METAVERSE HAPPEN

"They're trying to invent the next product category—that's what they want to do. They want to have some sort of hardware to push into the future. They just haven't convinced me that this really is the future yet."

Apple just announced the most impressive—and expensive—AR/VR/MR device ever made. But who is the device for and how will they use it? MobileSyrup editor-in-chief Patrick O'Rourke joins to answer these questions fresh off of strapping Apple's spacial computer to his face.

THE COLLISION CONVERSATION IS A MICROCOSM FOR CANADIAN TECH

Is Collision staying in Toronto (and for how much)? Is Collision coming to Vancouver? Why are Canada’s governments paying foreign companies to compete against local events? Are we a branch plant innovation ecosystem? Do we secretly believe we can’t do it ourselves?

People across Canada are asking questions about Collision. The answers say a lot about Canadian tech.

Subscribe to B|K: The BetaKit Newsletter

The post The two Canadian cities rising in Startup Genome’s global ecosystem rankings first appeared on BetaKit.

Apple’s Vision Pro won’t make the metaverse happen

Douglas Soltys — Sun, 18 Jun 2023 19:39:34 +0000

On this podcast, we talk Canadian tech and tech from a Canadian perspective.

Sometimes that means hourlong discussions based on monthslong investigative reporting on the future of Collision and what it means for the Canadian tech ecosystem. Sometimes it’s just, ‘Hey, Apple launched a new thing’.

“They’re trying to invent the next product category. They want to have some sort of hardware to push into the future. They just haven’t convinced me that this really is the future yet.”

But not just any thing. It’s a thing that you strap to your face—and it costs $3,500 USD!

Joining us to understand Apple’s vision of the future is Patrick O’Rourke, MobileSyrup editor-in-chief and longtime friend of the pod. He just got back from WWDC, Apple’s worldwide developer conference, where he did, in fact, strap the Vision Pro to his face.

It’s clear from early reports from Patrick and others that Apple has produced the most impressive—and expensive—AR/VR/MR device ever made. But who is this device for?

There’s certainly a subset of Apple customers who—like the latest Dyson device—will pay a premium for the brand association. And there are some with the disposable income to pursue the isolated, WALL-E-like future this device implies. But that’s still just our current, isolated present—just strapped to your face.

So if Apple is counting on third-party developers to define the core proposition of the Vision Pro, all the company has really produced is the world’s most expensive dev kit.

And exactly what hardware or feature does the Vision Pro offer beyond currently-available AR/VR devices that have prevented developers from building those experiences already?

Did Apple just purchase an anchor store in the metaverse’s dead mall?

Let’s dig in.

The BetaKit Podcast is sponsored by Goodlawyer.
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The BetaKit Podcast is hosted by Douglas Soltys & Rob Kenedi. Edited by Kattie Laur. Sponsored by Goodlawyer. Feature image courtesy Bradley Bennett, via MobileSyrup.

The post Apple’s Vision Pro won’t make the metaverse happen first appeared on BetaKit.

Tribe Network launches $20-million VC fund to invest in early-stage stage businesses led by people of colour

Charles Mandel — Fri, 16 Jun 2023 21:34:40 +0000

Tribe Network is launching Tribe Ventures, a venture capital fund that will invest in pre-seed and seed-stage businesses led by racialized founders. The purpose of the fund is to level the playing field for entrepreneurs who have traditionally faced systemic barriers when accessing capital, according to the Tribe Network.

The $20-million fund will seek out racialized founders building high-growth technology companies, and will focus primarily on entrepreneurs based in Canada. However, some 15 percent of the fund will be reserved for international investment in Africa.

“For years, Black business communities have faced significant barriers to accessing traditional avenues for growth and support.”
—Mary Ng,
Minister of Small Business

Tribe Network said it is currently in the process of raising the fund, and throughout June and July will host events in Halifax, Toronto, Montreal, and Calgary to engage investors and racialized founders.

Alfred Burgesson, CEO and founder at Tribe Ventures, told BetaKit that Tribe Network hadn’t raised anything yet, but was looking toward a number of sources and had some soft commitments.

Burgesson said the fund intended to approach the Venture Capital Catalyst Initiative and from the Social Finance Fund. The former is a federal government initiative to increase the availability of capital for Canada’s high-potential innovative firms, including those in the life sciences sector and for entrepreneurs from underrepresented groups, such as women and racialized communities.

The federal government also operates the Social Finance Fund, which has given three fund managers $400 million to invest over the next five years. The investments will go toward existing or emerging social-finance investors, which raise money from investors to make social finance investments, use innovative and complementary strategies to sustainably grow the social finance market, and expand flexible financing opportunities for social purpose organizations.

Burgesson said they are also in discussions with provincial governments as to how they might support the fund.

Tribe Network wants to close the fund at the end of the year, and hopes to begin investing in early 2024. In the Canadian market, deal sizes will range from $150,000 to $300,000 over the 10-year life of the fund.

The African market will see deal sizes of $150,000 to $200,000. “Our team has strong connections in Africa,” Burgesson said, explaining why Tribe Ventures intends to invest there. “It’s an emerging market. We also believe that it’s a strong opportunity for Canada to position itself as a global HQ for some of the emerging talent that’s coming out of Africa.”

Tribe Network launched in 2020, aiming to create an entrepreneurship and innovation hub for entrepreneurs identifying as Black, Indigenous, and People of Colour (BIPOC).

A study conducted in 2022 found that Black entrepreneurs received less than one percent of venture capital funding in the United States,” according to TechCrunch.

“[Africa] is an emerging market. We also believe that it’s a strong opportunity for Canada to position itself as a global HQ for some of the emerging talent.”
—Alfred Burgesson,
CEO, Tribe Ventures

“Based on the data and what we know, racialized founders are consistently underserved, underfunded and underestimated in the venture capital ecosystem,” Alfred Burgesson, CEO and founder at Tribe Ventures, said in a release.

“The genesis of Tribe Ventures is to address this imbalance and build capacity for these founders.”

Mary Ng, the federal minister of small business, export promotion and international trade, said the same thing in 2021 at the launch for the first round of applications from the Black Entrepreneurship Ecosystem Fund. At the time, she stated: “For years, Black business communities have faced significant barriers to accessing traditional avenues for growth and support and this includes a lack of access to capital, resources, and other opportunities.”

Tribe Network’s fund somewhat mirrors BKR Capital’s. BKR Capital, formerly known as Black Innovation Capital, closed an additional $4.5 million CAD in 2022 for its venture capital fund focused on Black tech entrepreneurs in Canada.

The close comes in addition to the $6.4 million BKR Capital secured last year from lead investor BDC Capital, and RBC, Globalive Capital, and Telus Ventures.

BKR Capital aims to back 18 Canadian tech companies founded by Black entrepreneurs over the next four years. BKR Capital also increased its target fund size to $20 million from its initial $10-million goal.

The post Tribe Network launches $20-million VC fund to invest in early-stage stage businesses led by people of colour first appeared on BetaKit.

Startup Train returns as Startupfest 2023 announces over $300,000 in prizes

Charlize Alcaraz — Fri, 16 Jun 2023 16:28:34 +0000

Startupfest, a celebration of startups in Montréal, has announced the return of its train service, Startup Train, as well as over $300,000 in prizes.

Taking place from July 12 to July 14, Startupfest has revealed several major attractions this year, including investment prizes for startups and an express train for attendees to get to the event from the Toronto area.

In partnership with Toronto-based law firm Fasken, Startupfest is bringing Startup Train back this year, so attendees coming from the Greater Toronto Area can board a direct train to Montréal alongside other corporate staffers, mentors, investors, and founders.

Startup Train passengers will depart from Union Station in Toronto on July 11, the day before the event. They will embark on five to six hours of travelling, arriving at Gare Centrale in Montréal.

There are also several opportunities for entrepreneurs attending StartupFest to secure funding.

Here are the cash prizes and awards up for grabs at StartupFest this year.

Best of the Fest

Worth $100,000, the Best of the Fest investment prize is open to all startups in attendance, with no pre-registration required.

Startups will have until 5 p.m. on Thursday, July 13 to deliver their pitch to the investor judges. The $100,000 contribution is an investment from up to 10 angel investors.

Judges for Best of the Fest include BoxOne Ventures co-founder Arvind Ramanathan, 0MC Capital principal Jason Van Gaal, and Element AI co-founder Anne Martel.

Toronto-based space company Magnestar won the Best of the Fest award at last year’s Startupfest event.

Women in Tech

The Women in Tech prize will award one female-led startup with a $100,000 investment. It will be presented by The Firehood, an angel network that focuses on supporting women in the technology sector.

StartupFest and The Firehood’s definition of a “female-led” startup is a startup with the most senior member of the executive team identifying as female.

For a chance to win, startups need to register, be on site, and pitch to a panel of judges. Some of the judges include The Firehood co-founders Danielle Graham and Claudette McGowan.

Sherbrooke, Québec-based cleantech company Permalution was named the winner of this investment last year.

Black Entrepreneur

Black entrepreneurs attending Startupfest this year have the opportunity to win $100,000 through the Black Entrepreneurship Investment Prize.

This prize is presented by Rep Matters in partnership with FACE, Groupe 3737, and Tribe Network. Like the Women in Tech award, the $100,000 for Black entrepreneurs is an investment from up to 10 angel investors.

Some of the judges for this prize include Groupe 3737 co-founder Frantz Saintellemy, as well as League of Innovators’ executive director Melissa Allen.

The Grandmothers’ Choice Award

The Grandmothers’ Choice Award features a panel of judges who are grandmothers, which will include the mom of Shopify president Harley Finkelstein, among others.

Like Best of the Fest, this award is open to all startups registered and attending the event. Participants have until 3 p.m. on the last day of Startupfest to pitch to the grandmothers.

Montréal-based Azimut Medical, which is developing an intelligent belt that can detect falls and automatically deploy airbags, won the Grandmothers’ Choice Award last year.

Impact prize

Presented by Fonds de solidarité FTQ, the Impact Prize will provide a $25,000 bursary to a startup with “the most promising impact.” This prize is only open to startups based in Québec.

Student Entrepreneur

Front Row Ventures is providing $50,000 for the Student Entrepreneur prize at Startupfest this year. This prize is only open to Startupfest attendees working on a startup with at least one co-founder currently enrolled at a Canadian university.

The post Startup Train returns as Startupfest 2023 announces over $300,000 in prizes first appeared on BetaKit.

Synthetic biology startup Ardra is brewing up big plans with its fermentation technology

Charles Mandel — Fri, 16 Jun 2023 11:00:02 +0000

At the end of last year, fermentation startup Ardra Bio found itself in trouble. The startup is working to develop ingredients for the natural flavours, perfume, and cosmetics industries by fermenting natural sugars. Ardra says these are free of the harmful residues found in standard petroleum-derived synthetic ingredients. Sounds like a win, right?

But one of Ardra’s manufacturing partners had gone bust, taking a large cash deposit with them. Its second-choice manufacturer was slowed due to a COVID-19 wave in China. And the broader venture market looked to be brewing up a pronounced downturn.

“[Precision fermentation] is going to change manufacturing.”
—Pratish Gawand, Ardra

Yet Pratish Gawand, co-founder and CEO of the Toronto-based company, remains optimistic that Ardra can turn things around, and that good things can happen if you just give them enough time to mature.

Still, the challenges were many. Fermenters are in short supply globally, which is why the Toronto-based startup found itself dealing with a fermentation company in the Netherlands.

Gawand explained to BetaKit that for the startup to even book a batch for fermentation, it had to plan four to six months in advance. And if something went wrong with that one batch, they wouldn’t be able to do anything again for months. “Smaller companies just don’t have that liberty to wait it out,” Gawand said.

Ardra had scheduled a fermentation batch for November 2022, but the week before the run, the Dutch company filed for insolvency. “We had no idea they were going through financial strain,” Gawand said, sounding still shocked. “They did not tell us.”

Ardra had extended the money for the test batch, and lost the advance in the bankruptcy. One batch costs $100,000, Gawand said. “We’re talking about big numbers here, at least from a startup point of view.”

Despite the setback, Gawand is optimistic. By his own admission, the startup has run into a series of unfortunate events that has caused it to miss milestones and potentially weaken investor confidence.

The startup has lost a substantial amount of its capital, and while it recently gained a new contract manufacturer to aid it in producing its next batch of precision fermentation, it’s not a partnership kindly looked upon by everyone.

But if private capital has proven wary of the company, the federal government and one of the provinces has embraced its core idea.

As Ardra has navigated the pitfalls of a technology startup, Ontario Genomics, an innovation not-for-profit organization, and the federal NRC Industrial Research Assistance Program (IRAP) have stepped in to provide some badly needed support in a number of different ways. IRAP has even moved beyond its mandate to assist Ardra.

While Ardra’s story is unique, it also points to some of the structural challenges in the emerging precision-fermentation space.

Founded in 2016 and currently employing 11 people, Ardra aims to use technology to help cure companies of their dependence on petroleum, which currently forms the dominant base for such things as food ingredients and textiles.

“It’s going to change manufacturing,” Gawand said.

With that in mind, Ardra forged ahead and found a Chinese partner company to work with on a test batch. This time, Ardra didn’t have to wait six months to get a batch done, but some challenges persisted.

Ardra began work with its Chinese partner in December 2022, but as a COVID-19 wave engulfed China, the country and all of its businesses ground to a stop, posing logistical challenges.

“We could not go visit [or] do our due diligence on them,” Gawand recalled. He noted that communication was also challenging as well.

Working with a Chinese company came with another risk: investors looking askance at Ardra’s choice of partner. Precision fermentation is new enough that not too many investors understand the technology, according to Gawand. He pointed out that relatively few Canadians are involved in manufacturing businesses in the startup space.

“Investors here typically follow, they don’t lead,” Gawand opined. “They don’t understand the technology and the business.” Rather, the Canadian investors prefer to follow other investors who understand the business, and those tend to be in the United States, he added.

But Ardra found buy-in from US investors difficult to attract.

[Canadian] investors typically follow, they don’t lead.
—Pratish Gawand, Ardra

Gawand noted that when it came to manufacturing in China, political aspects also came into play. He said US investors would rather support manufacturing in the US, so they won’t buy into Ardra because it’s dealing with China. Then it becomes difficult to find investors in Canada, because they look to invest after Americans do.

“Eyebrows go up when we say we’re manufacturing in China, and that’s why,” Gawand said.

According to the firm, Ardra creates its ingredients by fermenting natural sugars, which are free of the harmful residues found in petroleum-derived synthetic ingredients. The products the startup is developing include leaf-aldehyde, a flavor and fragrance ingredient that is naturally present in many plants. Leaf-aldehyde has a spicy odour, but in small concentrations it smells and tastes like green apple. Leaf-aldehyde is used in flavour formulations to recreate green apple, berry and citrus flavours.

Another Ardra product is butylene glycol, a widely used ingredient in moisturizers, face masks, acne creams, shaving gels and more. It has excellent moisturizing properties, and helps other active ingredients absorb into the skin.

Ardra’s technology is based on the emerging field of synthetic biology. The startup designs and recreates biochemical pathways within benign industrial microorganisms, and cultivates these microorganisms in controlled fermenters to produce ingredients using sugars as raw materials.

Ardra claims its products offer a significant cost and sustainability advantage. Additionally, since the ingredients do not use botanical raw materials, their supply is stable and devoid of seasonal variations.

To develop fermentation processes, Ardra uses proprietary tools and techniques including computational algorithms to predict and design biochemical pathways and purification techniques to ascertain that the ingredients to consistently meet industry standards.

All that sounds good and fine, but when it came time to scale up, Ardra began to run into problems. When it comes to research and development, startups use fermenters that hold between five and 10 litres. But as they grow, they need to scale up the process, Gawand explained, and larger fermenters are needed.

The cost of fermentation grows along with the size of the fermentation tanks. Fermenters at breweries or wineries are typically 1,000 to 5,000 litres. Commercial-scale fermenters can reach 100,000 litres, or more depending on the product.

For a small startup like Ardra, the challenges can begin to look insurmountable.

“A lot of different types of investors cannot support it,” Gawand said.

Even so, Gawand said Ardra’s focus is on scaling up, and that it wants to produce enough to demonstrate that its process works at scale. But given that Ardra was supposed to have proven that last year, there’s a lot of strain on the startup, Gawand admitted, because the milestones are missed and he’s not able to demonstrate to investors that the company’s goals are achievable.

“It’s a tough challenge,” he said. “A tough time to raise financing. The reason we missed the timeline is because we relied on these external contract manufacturers. We could not have anticipated they would go bankrupt.”

To date, Ardra has raised between $3.5 million and $4 million. The startup characterizes its first round as an accelerator round, and the second as a pre-seed. Currently, Ardra is working toward a seed round. Largely, the money has gone towards supporting the development of its work.

However, Gawand said Ardra is concentrating on scaling up one particular product at the moment, and out of the last round of investment, formed a strategic partnership with a US-based company. This company is supporting the development work, and will become global distributor of the yet-to-be-disclosed product once it’s fully commercialized.

But when Gawand names Ardra’s biggest supporters, he points to the public sector, including Ontario Genomics and IRAP. Despite IRAP’s mandate to support work within Canada, when Ardra explained the company needed to look further afield for manufacturers, “They were open to [supporting] our work abroad, and that really helped us,” Gawand said.

The Next Generation Manufacturing Canada cluster also provided pilot funding, and, according to Gawand, provides one of the few grants that supports capital purchases, enabling the startup to buy equipment.

This helps make Ardra independent of the contract research groups it’s had to deal with, and moves things along more swiftly while protecting the startup’s intellectual property, he said.

Over at Ontario Genomics, Bettina Hamelin, president and CEO, told BetaKit that her organization provided Ardra over $350,000 in non-dilutive funding through a number of different vehicles.

Beyond that, though, Ontario Genomics has hosted the startup at its national conference every year, and in the last month, took Ardra along on a trade mission to the Netherlands. “We’ve invested a lot in Ardra,” Hamelin said.

Hamelin called Ardra a “perfect fit” with the agency’s vision and mission. Ontario Genomics leads the application of genomics and synthetic biology-based solutions across key sectors of the economy. She acknowledged that more infrastructure is needed, and said a gap exists when it comes to the bio-manufacturing for non-health applications.

“That’s where we’ve been pushing government and industry to invest more,” Hamelin said.

During the trade mission to Holland, Hamelin said she learned that Canada is not alone when it comes to scaling up precision fermentation. She called it a global challenge and a global opportunity. “I just think it’s so important that we do this, so that we can really lead the economy in that regard,” Hamelin said.

At the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) Louis Gorgenyi, the bioproducts sector team lead, called fermentation an emerging space much like AI. He noted that Ardra is an IRAP client, but declined to state the exact amount IRAP had provided.

Gorgenyi did say that a number of individual companies are looking at fermentation, and that those were some of the spaces where IRAP was looking for interest in collaborators setting up research facilities, or engaging with Canadian small and medium-sized enterprises (SMEs) to develop technologies or scale up.

For its part, as Ardra has evolved its various fermentation projects, it’s cobbled together a patchwork of funding from whatever it can get. It received over $149,000 in 2022, for example, to develop a synthetic process to generate an iron-rich, complex molecule called heme, which is found in animal blood. Heme provides a core element of the taste of meat.

Ardra was able to produce animal-free heme by precision fermentation, and claimed to have active requests for larger sample amounts from several major flavour companies. With funding from AcCELLerate-ON, a regional agriculture competition supported by Ontario Genomics, Ardra planned to reach pilot-scale for heme production, validation of their key ingredients by these potential customers, and to establish a clear path to market.

A couple of months later, Ardra raised another $250,000 from Next Generation Manufacturing Canada (NGen), the industry-led organization behind Canada’s Global Innovation Cluster for Advanced Manufacturing. The money was in support of a $500,000 project led by Mediphage Bioceuticals, Inc. in collaboration with Ardra.

The partners will develop engineered industrial microorganism platform strains aimed to support both companies’ proprietary biomanufacturing processes, including Ardra’s natural ingredients used in the food industry.

As Ardra continues its almost quixotic quest to develop its fermentation technology, Gawand said new companies in the sector are springing up, and interest in the field has grown in the last couple of years.

Previously, a handful of companies pursued fermentation. As of 2022, according to the Good Food Institute’s 2022 Fermentation State of the Industry Report, the number of companies focused on fermentation of alternative proteins had reached 136.

As well, in early 2023, nine precision fermentation companies co-founded the Precision Fermentation Alliance, which will focus on regulatory engagement and consumer messaging.

And investment in fermentation reached $842 million across 89 deals, according to the Good Food report.

Given the continuing rise in fermentation, the question remains: Is Ardra’s troubled journey unique, or has Canada failed to see the opportunity in the technology?

But Gawand, ever hopeful, said that generally in the industry, there’s momentum.

“I’m optimistic,” he said, “Things will move forward.”

The post Synthetic biology startup Ardra is brewing up big plans with its fermentation technology first appeared on BetaKit.

H|T: The Healthtech Times – Twig Fertility secures funding, Bunnii shuts down

Alex Riehl — Fri, 16 Jun 2023 09:00:29 +0000

The Healthtech Times is a weekly newsletter covering healthtech news from Canada and around the globe.

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Rhino Ventures leads Twig Fertility’s $8 million Series A to improve fertility experience with tech (BETAKIT)

Toronto-based fertility clinic Twig Fertility aims to fill the gap in fertility care with its newly raised $8 million CAD Series A funding.

The funding will support its growth plans, including the development of its proprietary healthtech platform which will use personal health and demographic data to optimize each patient’s treatment plan and work toward their family-building goals.

Founder of Sexual Wellness Startup OneTaste Charged With Exploiting Abuse Victims (BNN BLOOMBERG)

The founder of sexual wellness education startup OneTaste, Nicole Daedone, and its former head of sales, Rachel Cherwitz, were charged with engaging in a yearslong conspiracy to manipulate victims of past sexual trauma and abuse into providing forced labor.

“Under the guise of empowerment and wellness, the defendants are alleged to have sought complete control over their employees’ lives, including by driving them into debt and directing them to perform sexual acts while also withholding wages,” Brooklyn US Attorney Breon Peace said in a statement.

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AlayaCare founder, Alberta Innovates and Strata Health Solutions executives honoured at e-Health Conference (BETAKIT)

Adrian Schauer, founder and CEO of AlayaCare, is one of three healthtech executives honoured with the award of Top Digital Health Executive for 2023 at the e-Health 2023 Conference and Tradeshow held in Toronto.

GetHarley, a skincare telehealth and consultation platform, raises $52M (TECHCRUNCH)

GetHarley, a platform that connects consumers with skincare clinicians and related products, has raised $52 million in a round of funding led by existing investor Index Ventures.

Part of GetHarley’s business model involves selling skincare products as part of a personalized plan, catering to specific individual factors.

Here’s how Canada’s top 10 cities rank in the global startup ecosystem (BETAKIT)

Though Canada maintains the rank of fourth place among 100 countries in StartupBlink’s global index for 2023, the report found that regions within the country experienced significant changes in the last year.

Helium Health gets $30M, backed by AXA IM Alts and 23andMe’s Anne Wojcicki (TECHCRUNCH)

Helium Health, the African startup that provides software-as-a-service tools, financing and insights for healthcare providers and public health organizations, has raised $30 million in Series B funding.

The news is coming three years after the Lagos-headquartered health tech secured a $10 million Series A and 18 months following a rare Africa-GCC deal involving UAE-based healthcare provider-patient interaction platform Meddy.

FemTherapeutics raises $2.5 million CAD to address pelvic floor disorders with custom vaginal prosthetics (BETAKIT)

Montréal-startup FemTherapeutics has raised has raised a $2.5-million CAD to improve pelvic medicine. By combining artificial intelligence, cloud computing, and 3D printing, the company is developing customizable gynecological prosthetics.

Fertility startup Bunnii shutters after failing to secure funds (AXIOS)

New York-based fertility planning startup Bunnii shut down this week after failing to secure funding, CEO Meredith Brunette tells Axios.

Bunnii's demise is reflective of the challenges facing the nascent women's health tech sector, where funding could see a bust before it had a chance to boom.

York University partners with OneEleven to launch joint venture studio for new tech MBA degree (BETAKIT)

York University’s Schulich School of Business is partnering with Toronto-based tech hub OneEleven to establish a joint venture studio.

The venture studio will match students with member companies from both OneEleven and Schulich’s startup communities, who will complete pro bono product and fundraising analysis for select startups.

Carbon Health is already using AI to write patient records (STATNEWS)

Primary care tech startup Carbon Health is using artificial intelligence to listen in on patient appointments and automatically write up near-complete notes within minutes, directly in its own electronic health record software.

Carbon has raised about $750 million in venture funding, including $100 million earlier this year, and has been developing the AI-based health record software over the past few months.

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The post H|T: The Healthtech Times – Twig Fertility secures funding, Bunnii shuts down first appeared on BetaKit.

Someone built a guide to all the Collision afterparties

Charlize Alcaraz — Thu, 15 Jun 2023 20:41:15 +0000

A group of Toronto-based individuals and organizations have made a masterlist of the afterparties that coincide with the three-day Collision tech conference.

Erdos Ventures founder Michael Liu, along with tech hubs AceDAO and TechTO, put together a comprehensive community-driven list of the different kinds of events surrounding Collision ahead of the tech conference taking place from June 26 to June 29. By press time, the list counts 57 events.

The afterparties vary in terms of activities; from networking events to mixers, and concerts to breakfasts.

Here is the interactive map that visualizes the locations of the disparate events throughout Toronto. The map is powered by Chicago company Vennity, which provides a platform for creating gamified NFT experiences in the real world.

While compiling this list, Liu said that the team collaborated directly with businesses, event hosts, and community members to ensure “all of the most exclusive events are included as well.”

The afterparties vary in terms of activities; from networking events to mixers, concerts, and breakfasts. Some of the events on the list are completely free, meaning people can attend without a Collision conference pass. Others require tickets to be purchased or are invite-only.

Collision is now in its third year in Toronto (fifth, counting the virtual conferences held in 2020 and 2021, during the height of COVID-19 pandemic). This year was originally supposed to be Collision’s last showing in the city. However, BetaKit has reported on efforts to bid for the tech conference to either stay for another year in Toronto, or perhaps move to the west coast in Vancouver in 2024 or beyond.

Featured image from Vennity’s map.

The post Someone built a guide to all the Collision afterparties first appeared on BetaKit.

Canada invests $25 million in a new program to address barriers for 2SLGBTQI+ entrepreneurs

Charlize Alcaraz — Thu, 15 Jun 2023 16:52:53 +0000

As Pride month events are underway, the Government of Canada is investing $25 million to establish an entrepreneurship program focused on supporting 2SLGBTQI+ business owners.

Administered by Canada’s 2SLGBTQI+ Chamber of Commerce (CGLCC), the 2SLGBTQI+ Entrepreneurship Program is meant to address the barriers that 2SLGBTQI+ entrepreneurs face in growing their businesses and build a more inclusive economy for the more than 100,000 2SLGBTQI+-owned and –operated businesses in Canada.

CGLCC was formerly called the Canadian Gay and Lesbian Chamber of Commerce. Though it has since rebranded, the organization retained the acronym from its previous name.

In 2019, only 0.5 percent of all funding for startups went to LGBTQ+ entrepreneurs.

The acronym 2SLGBTQI+ is what the government and CGLCC use to refer to people that identify with the following communities: 2S for Two-Spirit people, lesbian, gay, bisexual, transgender, queer, and intersex.

Entrepreneurs who identify as 2SLGBTQI+ often experience added obstacles in growing their businesses due to discrimination against their identities.

CGLCC and Deloitte conducted a survey in 2021 and it found that 20 percent of 2SLGBTQI+ entrepreneurs said they face business problems because they were members of the community. One of the top issues cited was difficulty accessing financing.

A 2019 index by StartOut found that only 0.5 percent of all funding for startups went to lesbian, gay, bisexual, transgender or queer+ entrepreneurs.

This new federal 2SLGBTQI+ entrepreneurship program aims to support 2SLGBTQI+ entrepreneurs by providing capital, business advice, resources, and mentorship.

The 2SLGBTQI+ Entrepreneurship Program is made up of three main components. One is the Business Scale-up program, which will provide funding to strengthen the capacity and program delivery of the CGLCC.

Specifically, the federal government said that the Business Scale-Up component will help implement a national mentorship program, enhance access to corporate procurement opportunities, support 2SLGBTQI+ businesses in becoming “export ready,” and develop a pilot for delivering loans to 2SLGBTQI+ entrepreneurs.

Another part of the 2SLGBTQI+ Entrepreneurship program is the Ecosystem Fund, which will fund other organizations across the country with the goal of increasing their capacity to support 2SLGBTQI+ entrepreneurs.

Thirdly, the CGLCC will partner with an academic institution in establishing the Knowledge Hub to address gaps in knowledge and data. The CGLCC has not disclosed further details regarding this partnership.

Established in 2003, the CGLCC’s vision is to promote economic growth and prosperity for 2SLGBTQI+ businesses. The CGLCC offers several resources as part of this mission, such as supplier diversity certification, mentorship, global trade opportunities, and capacity-building and development opportunities.

Featured image courtesy Unsplash.

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Micharity targets US expansion for its charitable fundraising platform with $7 million Series A

Josh Scott — Thu, 15 Jun 2023 10:00:43 +0000

After establishing a strong presence in Canada and experiencing years of comfortable, capital-efficient growth, Toronto-based Micharity has raised its ambitions.

Micharity sells fundraising and customer relationship management (CRM) software to small-to-medium-sized non-profits in the health-care, education, faith, and arts and culture spaces. To date, the software startup has amassed a customer base of 4,200 organizations, most of them Canadian.

Verstra Ventures’ Matan Hazanov called the software landscape for non-profits “a historically underserved and underdeveloped market.”

Now, armed with $7 million CAD in Series A funding from INcapital Ventures, GreenSky Ventures, and Verstra Ventures, Micharity co-founder and CEO Rob Nour said Micharity is ready to accelerate its growth and tackle the United States (US) market.

“Generally speaking, over the past, we were growing anywhere between 25 to 30 percent year-over-year,” Nour told BetaKit in an exclusive interview. “We want to be able to reach a point where we can triple [or] quadruple [the business], and to do that we needed a capital infusion.”

Micharity’s all-equity Series A round, which closed earlier this month, included $1 million in secondary funding to the firm’s founders and came at a $27-million pre-money valuation. The startup plans to use this capital to support its US expansion and product development plans, which include integrating more automation and predictive analytics into its platform.

Nour founded Micharity in 2016 alongside a trio of software engineers: CTO Avo Muradyan, head of design Farhan Siddique, and head of engineering Sergiy Stupnytskyy.

The group set out to build an “all-in-one” solution after noticing a gap in the fragmented software landscape for non-profits, which Verstra Ventures managing director Matan Hazanov described in a statement as “a historically underserved and underdeveloped market.”

While more competition in the non-profit tech space has emerged since Micharity first launched, Nour claimed that COVID-19 has weeded out some other firms and led to consolidation across the sector. Among companies that remain, Nour believes that Micharity’s client-led approach, ease-of-use, and affordable price point differentiates the firm’s platform.

GreenSky partner Neil Peet said that GreenSky was impressed by the consistent growth that Micharity has achieved since its inception, with minimal external funding.

“We are excited to see what they are able to accomplish with sufficient capital to invest in their team on the sales and technology side,” Peet told BetaKit.

Prior to its Series A financing, Micharity bootstrapped before raising a total of only $960,000 in 2019 from the Ontario Centre of Innovation and Brown Capital.

According to Nour, Micharity has been profitable since its early days, and has always taken care to balance growth and efficiency due to the sector it serves.

“We were always growing at a certain point, but also conservative in terms of how we spend our money,” said Nour. “At the end of the day, we work with non-profits.”

To date, this approach has served Micharity well as it has navigated the COVID-19 pandemic and now the tech correction and economic downturn, which have hit many non-profits hard.

“The [Micharity] team is incredibly strong and resilient, working together through some challenging situations, and without taking on any additional capital,” Peet said.

For his part, Peet believes Micharity is well-positioned to make good on its plans to grow south of the border and move into new markets. “When you have a robust product, with customers who love the platform, and a negative churn rate, you are well positioned to grow into new markets across Canada and the US,” he said.

In 2021, Micharity generated almost $4 million in revenue. Last calendar year, the startup surpassed $5 million. Nour is hopeful that the company’s US expansion will help it reach $8 million or $9 million in revenue in 2023.

Over the longer term, Nour sees room for Micharity to expand overseas. The CEO also identified potential for the startup to leverage the tech it has built and expand into new areas beyond non-profits, such as political fundraising.

Feature image courtesy Micharity.

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Toronto-Waterloo, Vancouver, and Montréal hold the fort as Calgary and Ottawa rise in Startup Genome’s latest global ecosystem rankings

Josh Scott — Thu, 15 Jun 2023 10:00:35 +0000

According to Startup Genome, Canada’s biggest tech startup ecosystems have maintained their positions from 2022, while two emerging cities have improved their standing.

Per Startup Genome’s 2023 report, which covers up to the first half of 2022, Toronto-Waterloo, Vancouver, and Montréal were the only Canadian startup ecosystems to crack Startup Genome’s top 40 global rankings, with all three finishing in the same place as last year. Once again, Toronto-Waterloo, which Startup Genome groups together, was Canada’s top-ranked startup ecosystem, placing highest at 17, followed by Vancouver and Montréal, which came in at 30 and 40, respectively.

Toronto-Waterloo, Vancouver, and Montréal held their positions from 2022, while Calgary and Ottawa rose slightly.

Meanwhile, a duo of smaller cities rose slightly on Startup Genome’s emerging ecosystems list: Calgary cracked the 51-60 range for 2023 (up from 61-70) and Ottawa featured in the 71-80 range—an increase from 2022 when it came in between 81 and 90.

Per Startup Genome’s latest report, since most of them fell in the organization’s 2022 rankings, three of these five Canadian startup ecosystems have defended the fort, and two have even gone on the attack.

Startup Genome’s latest annual report closely aligns with StartupBlink’s recent analysis in terms of how it ranks Canada’s top five startup ecosystems. However, per StartupBlink, some emerging ecosystems—including Ottawa, Kitchener, and Québec City—saw stronger gains.

Founded in 2016, Startup Genome is a San Francisco-based policy advisory and research organization focused on evaluating startup ecosystems. Startup Genome’s startup ecosystem rankings are based on six factors: performance, funding, connectedness, market reach, knowledge, talent, and experience.

The organization’s 2023 report is based on startup activity that took place before or during the first half of 2022. Startup Genome derives its data from interviews with over 100 experts, its startup ecosystem survey, Dealroom, Crunchbase, and PitchBook, as well as a network of local partners, including accelerators, incubators, startup hubs, and investors.

Ranked at 17 overall among global ecosystems, Toronto-Waterloo ranked particularly well in terms of funding, connectedness, and talent and experience. The region also posted relatively strong scores in the funding and market reach categories, but was dragged down a bit by its very poor knowledge ranking.

Meanwhile, Vancouver, in spot 30, posted its strongest results in the performance, funding, and connectedness categories, and weakest in market reach and knowledge. At 40, Montréal secured low scores across the board.

For its part, Calgary was buoyed by relatively strong funding, connectedness, and talent and experience scores, and hurt slightly by its low market reach and knowledge rankings. Startup Genome’s Ottawa finds were slightly different, as the city nabbed quality results on the connectedness, knowledge, and talent and experience fronts, alongside weak performance, funding, and market reach scores.

According to Startup Genome, Canada produced 15 unicorns in 2022, “largely from the rapidly growing hubs of Toronto-Waterloo, Vancouver, and Montréal.” This marked only a slight decrease from the 18 that were anointed in 2021.

As far as top startup ecosystems overall, Silicon Valley, New York City, and London defended their positions as one, two, and three, respectively. However, this year there was also some new blood in the top five, as Boston and Beijing were replaced by Los Angeles and Tel Aviv.

Feature image courtesy Unsplash. Photo by Matthias Mullie.

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Kibbi, a job-finding app for newcomers created by a newcomer, raises $1.1 million CAD

Charles Mandel — Thu, 15 Jun 2023 10:00:12 +0000

The way Hong Phuc Nguyen tells it, she was raised to become an entrepreneur. She was born into a woman-led family business, and recalled her first job was selling fish sauce in plastic bags in a small coastal town in Vietnam from the age of five.

“Naturally, this upbringing sparked my passion for business and has helped me appreciate teamwork, humility, curiosity, and hard work, she said.

“I came at the worst time to immigrate in the world. I didn’t know Canada.”

Certainly, the founder of Kibbi, an online job board for immigrants and accompanying app, would bring all of those attributes to her professional journey. Nguyen recently closed $895,000 CAD in an oversubscribed pre-seed round for Kibbi.

Additional investments from Alberta Innovates, IRAP and other grants pushed the raise up to $1.1 million CAD. The51, Viewpoint Investment Partners, a few angels, and family and friends invested in the round.

The origin story of Kibbi begins in 2019, when Nuguyen fled to Canada amid protests over China’s repression in Hong Kong. Nguyen and her husband — who is from Calgary — had been living in Hong Kong, where they met at the University of Hong Kong while she was pursuing an MBA.

“I came at the worst time to immigrate in the world,” Nguyen recollected. “I didn’t know Canada. The coldest I had been was plus-18 degrees.”

Nguyen and her husband moved to Calgary, where the temperatures often drop to minus 30 degrees in the winter. She struggled with the language.

“When I came here I had to learn [the phrases] Tim Hortons and Safeway, let alone BetaKit,” Nguyen laughed.

More seriously, they landed in Canada during the full lockdown over the COVID-19 pandemic. Job interviews were virtually non-existent. According to Nguyen, at the peak of the labour shortage in 2021, many immigrants were still struggling to find work. As for Nguyen herself, she had $30,000 CAD in savings to survive on.

That’s when Nguyen decided to start Kibbi. From the start, she found she faced the barrier typical to newcomers who are also founders: access to capital.

She said many immigrants can’t get a bank loan because they haven’t had a chance to build credit or a credit score in Canada.

“And if we go to look for equity, we don’t know anybody,” Nguyen laughed. To raise her first $150,000, Nguyen said she pitched everybody from her friends to her dentist.

Originally called GetBizzy, Kibbi was founded initially to help Vietnamese newcomers find jobs in Calgary despite the labour shortage during the peak of the pandemic. The Kibbi app gains its name from the Israeli concept of ‘kibbutz’ communities, or intentional agricultural communities. Nguyen describes the app as an entry-level job listing platform with a mission to redefine the job-search experience for newcomers.

At the same time, the app is meant to help small businesses get the support they need to operate, by redesigning how ads for available jobs are listed and shared. The app lists jobs visually on a map. That enables newcomers to avoid, for example, a one-hour bus ride to work and instead apply to businesses in their neighbourhood. Or single moms can see who is hiring near their daycares, or young people can apply for part-time jobs near school and home, Nguyen pointed out.

The Kibbi app lists jobs visually on a map and translates posts into 60 languages.

Nguyen claims that Kibbi is the first multilingual job portal in the market, translating job listings into 60 languages. It rates the English fluency required for each job, giving newcomers—especially basic English speakers—the confidence to apply and enter the workforce.

The startup has partnered with more than 50 employment agencies and nonprofits across the country. They include Mosaic Employment and Settlement Services, and the Independent Contractors and Business Association (ICBA) of British Columbia. Through the partnerships, Kibbi helps the agencies place their clients and members into jobs through different models. With the ICBA, for instance, Kibbi’s job app is a membership benefit. Currently, Kibbi claims it has 6,000 registered job seekers as users.

Over at The51, Judy Fairburn, a fund managing partner, had praise for Kibbi as she explained why the fund invested in the startup.

“The51 is impressed by Kibbi’s innovative platform and personalized user experience that enables Canadian newcomers to apply for jobs in their own language, while also meeting the needs of employers. It alleviates a barrier for unlocking the drive, skills, and economic potential of individuals that come to this country to make a living and difference.”

Platform Calgary, an independently operated hub for startups and innovation, provided Kibbi with several kinds of assistance, ranging from non-diluted grants from Alberta Innovates, to help setting up a partnership with Manpower Alberta, Mina Demian, a startup advisor with Platform Calgary, said.

Demian said the “brilliance” behind Kibbi was not only does the startup have a great founder, but strong geo-spatial technology that aligns refugees and newcomers with services and jobs they can access in their neighborhoods.

Demian praised Nguyen’s “remarkable traction,” and her ability to meet the needs of both newcomers and the service industry in a way that is “really addressing a huge gap in the market.”

Nguyen calls herself a non-technical founder. She took her idea to her personal Facebook and LinkedIn accounts, and put a call out asking if anyone had app-development experience. One of her friends from high school, who was now working as a full-stack developer, replied, liked the idea, and said he’d help out.

“I just reached out to immigrant groups on Facebook, social media, to see who would jump on the ship,” Nguyen said. She managed to attract several people with tech experience who were working outside of the field. Kibbi’s UX/UI/graphic designer was working at a dollar store in Toronto; its product manager was studying for a master’s degree in Quebec; and the startup’s front-end developer was an Uber driver. Currently, Kibbi has nine employees.

As Nguyen forges ahead with her mission, which she said is to unlock opportunity for cross-sector collaboration to support newcomers and advance the local economy, the newcomer from Vietnam said one thing has become obvious to her since relocating to Canada. “If I can make it here,” Nguyen said, “Anyone can.”

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R|T: The Retail Times – Shopify uses new weapons in battle against patent trolls

Alex Riehl — Thu, 15 Jun 2023 09:00:51 +0000

The Retail Times is a weekly newsletter covering retail tech news from Canada and around the globe.

Subscribe to R|T using the form at the bottom of this page to ensure you don’t miss out on the most important retail tech news every week!

Shopify plans to “aggressively pursue” ID of funders in cases against “patent trolls” (BETAKIT)

After battling patent trolls for years, Shopify has announced plans to fight back by seeking to uncover the identity of people and organizations funding patent trolls suing Shopify.

TikTok Seeks $20 Billion E-Commerce Business Despite US Setback (BNN BLOOMBERG)

ByteDance Ltd.’s TikTok aims to more than quadruple the size of its global e-commerce business to as much as $20 billion in merchandise sales this year, banking on rapid growth in Southeast Asia, according to people familiar with the matter.

TikTok is working to expand sales in the US and Europe too, though those markets make up a small portion of the $20 billion goal, the people said.

POWERED BY: TECHNATIONAddressing Canada’s talent gap in the tech industry boils down to removing the barriers for equity-deserving groups

The Advanced Digital and Professional Training (ADaPT) program is a cost-free digital and professional skills development initiative that bridges the employment gap. It equips students in their final semester and post- secondary graduates with in-demand skills for entry-level tech roles.

ADaPT supports a diverse group of talent from varied educational backgrounds, with 79% of participants identifying as belonging to at least one equity-deserving group. Backed by 70+ hours of intensive training, the program exposes participants to tech career pathways.

The ADaPT program is funded by the Government of Canada’s Future Skills Centre and led by Toronto Metropolitan University’s Diversity Institute in collaboration with TECHNATION Canada.

To support future talent in thriving tech careers within Canada’s changing job market and become an ADaPT employer, find out more here.

Saskatoon startups Rivercity, 7shifts team up to enhance food temperature monitoring for restaurants (BETAKIT)

Rivercity Innovations (RCI) has launched the integration of its cold chain monitoring sensors and software with 7shifts, which provides a restaurant team management platform.

In this partnership, RCI will deliver its temperature monitoring services to 7shifts’ more than 40,000 clients.

India’s open e-commerce network expands to B2B transactions (TECHCRUNCH)

The Indian government-backed open e-commerce network has been expanded to facilitate business-to-business (B2B) transactions — months after enabling transactions between consumers and merchants over the open network protocol and widening its reach to the mobility sector.

The Indian government established ONDC as a nonprofit firm in 2021 to “democratize” digital commerce in the country.

Here’s how Canada’s top 10 cities rank in the global startup ecosystem (BETAKIT)

Tim Hortons to launch credit card through mobile rewards app (TORONTO STAR)

Tim Hortons is launching a Neo Financial powered credit card that can be used through its mobile app, the latest move into an increasingly competitive rewards space.

Tims Financial is a new division of Tim Hortons that will offer a no-annual-fee Mastercard as a result of Neo Financial's bet on embedded finance.

York University partners with OneEleven to launch joint venture studio for new tech MBA degree (BETAKIT)

York University’s Schulich School of Business is partnering with Toronto-based tech hub OneEleven to establish a joint venture studio.

The venture studio will match students with member companies from both OneEleven and Schulich’s startup communities, who will complete pro bono product and fundraising analysis for select startups.

Curri nabs $42M for its construction-focused last-mile logistics platform (TECHCRUNCH)

In 2018, Matt Lafferty and Brian Gonzalez co-founded Curri, a tech platform focused on last-mile logistics for the construction industry to help distributors save on operational costs, convert more sales, and solve inefficiencies in construction along the way.

Investors are evidently drawn to the concept, pouring $42 million into Curri’s Series B round that closed recently.

Shopify facing $130-million lawsuit for alleged attempts to slash post-layoffs severance pay (BETAKIT)

Shopify is facing a $130-million class action lawsuit for allegedly breaching severance pay contracts by tens of thousands of dollars with recently laid-off employees.

Exclusive: Giannis Antetokounmpo and family invest in Candy Funhouse (AXIOS)

Two years ago, NBA star Giannis Antetokounmpo posted two TikTok videos of himself unpacking a giant box of candy. On Tuesday, he announced that he's investing in the company that sent it

Blatant tech frauds run amok on the biggest online marketplaces (ARSTECHNICA)

Online retailers like Amazon and Walmart host third-party sellers with extensive, competitively priced electronics selections.

But for years, those marketplaces have served as playgrounds for fraudulent sellers who list products with deceptive performance claims or pose a physical threat to customers.

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Shopify partners with Volt to offer open banking solutions (but not in Canada)

Charlize Alcaraz — Wed, 14 Jun 2023 22:15:28 +0000

Shopify is partnering with United Kingdom (UK)-based FinTech startup Volt to offer open banking capabilities that Canadians can’t take advantage of amid seemingly endless delays in implementing this country’s open banking framework.

As part of this partnership, Shopify merchants across Europe and Brazil can offer Volt’s “pay-by-bank” checkout solution, which allows customers to settle funds almost instantly with real-time account-to-account payments.

“Unless something dramatic changes, Canada can expect to be relegated to the sidelines within 10 years.”

According to Volt, which provides open payments systems in the UK and Brazil, this integration with Shopify will also be extended to additional countries over the coming months, namely Australia in the fourth quarter of this year.

“Open banking is experiencing hockey-stick growth around the world because it’s faster, easier and more secure compared to incumbent payment methods,” said Matt Komorowski, Volt chief revenue officer, in a statement. “It’s a digital solution for the digital age, and we’re delighted to be bringing it to Shopify’s impressive merchant base.”

Neither Shopify nor Volt made mention of launching this feature in Canada (BetaKit has reached out to both companies for comment). Notably, the solution is only available to countries that have regulated open banking frameworks, where Canada lags behind.

Canada is currently developing a real-time rail (RTR) system meant to modernize the country’s core payments infrastructure, allowing for payments to be sent and received within seconds. This is made possible through an open banking system, which allows financial data to be shared between banks and third-party service providers, such as FinTech startups.

The progress in implementing Canada’s RTR system has been sluggish, however, with the initiative being delayed several times.

Payments Canada, the organization leading Canada’s RTR efforts, announced yet another delay in implementing the system on Tuesday. The system was initially slated to launch in 2022, and was delayed to an intended launch in mid-2023.

In a statement, Payments Canada attributed the setback to “current delivery delays, unrelated to the exchange technology components.” The delay announcement also coincides with the initiative’s second review in recent months.

Who is running this thing?!? Like who is the single threaded owner here?

— Harley Finkelstein (@harleyf) June 13, 2023

As the future of the RTR system gets blurrier, and no open banking update in the recent federal budget, leaders in Canada’s FinTech sector have become increasingly jaded regarding the prospects of open banking becoming a reality in the country.

When reached for comment on the most recently announced RTR delays, Koho CEO Daniel Eberhard noted that Shopify and Volt are unlikely to attempt offering a similar solution in Canada because the framework still isn’t in place.

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Cohere is the highest ranking Canadian startup on Bessemer’s top 100 deeptech companies

Charlize Alcaraz — Wed, 14 Jun 2023 18:53:02 +0000

Toronto-based Cohere is the highest-ranking Canadian startup in Bessemer Venture Partners’ list of top 100 “deep technology” companies.

Cohere, a competitor of ChatGPT creator OpenAI, is one of four Canadian companies included in the first edition of this list, ranking 41st place overall. It joins Vancouver startup Nexii (48th), Burnaby’s Svante Technologies (54th), and fellow Toronto firm Xanadu (92nd).

Oracle announced a partnership with Cohere following its $270-million USD Series C round last week.

Bessemer created the “XB100” list in partnership with XPRIZE, a non-profit foundation that hosts public competitions meant to encourage technological development to benefit humanity.

This list is meant to highlight the most promising startups developing “deep technologies,” which Bessemer refers to as “technology that was science fiction in the past but is reality today; it pushes the boundaries of human capability through novel research and directed commercialization.”

Deep tech, or deep technology, refers to companies with a business model based on high-tech innovation or significant scientific advances. It often includes artificial intelligence, robotics, blockchain, biotech, and quantum computing.

Founded in 2019, Cohere helps developers and businesses build products with natural language processing (NLP) technology. Its large-language models can be used to power interactive chat features, generate text for product descriptions, and perform content moderation, among other functions.

With its generative artificial intelligence (AI) capabilities, Cohere competes against players like Microsoft-backed OpenAI and Google-funded Anthropic, which each closed major funding rounds this year. For its part, Cohere recently secured $270-million USD in Series C funding.

Cohere raised its Series C round from a group of investors that include some of the world’s largest tech firms, such as Nvidia, Oracle, and Salesforce Ventures.

Following the raise, Oracle announced a partnership with Cohere to develop generative AI services for organizations.

Other Canadian startups included in the list have also raised sizable funding rounds in the past year.

Nexii, which designs and manufactures low-carbon buildings and products, raised $45 million CAD in July 2022, which raised the startup’s valuation to $2 billion CAD.

Towards the end of last year, in December, carbon-capture tech provider Svante raised a $318-million Series E round with Chevron’s clean energy division, Chevron New Energies, as its lead investor.

Quantum computing company Xanadu announced the closing of a $100-million Series C round in November 2022. That raise brought Xanadu’s valuation to $1 billion USD, making it Canada’s latest unicorn at that time.

Featured image courtesy Cohere.

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Automotive software maker LeddarTech inks SPAC deal to go public on Nasdaq

Josh Scott — Wed, 14 Jun 2023 16:09:56 +0000

Québec City-based automotive software provider LeddarTech has reached an agreement to merge with Prospector, a publicly-traded special purpose acquisition company (SPAC) led by former Qualcomm executives.

LeddarTech builds systems that help autonomous vehicles understand their surroundings. This SPAC deal, which is expected to close by the fourth quarter, gives LeddarTech a $348-million USD pro-forma equity valuation. Once it is complete, LeddarTech expects to become listed on the Nasdaq under the symbol LDTC.

LeddarTech CEO Charles Boulanger said this SPAC deal will provide LeddarTech with the capital and resources “to take the company to the next level.”

With the agreement, which comes about 16 months after LeddarTech closed $140 million in equity Series D funding and debt, LeddarTech is set to secure fresh capital and go public via SPAC at a time when the private fundraising and conventional initial public offering (IPO) markets have frozen over.

LeddarTech CEO Charles Boulanger said in a statement that this deal will provide LeddarTech with the capital and resources “to take the company to the next level.”

LeddarTech anticipates that the transaction will deliver up to $66 million in gross proceeds, including as much as $23 million from the Prospector trust account, and $43 million in convertible private-placement financing from a group that includes FS Investors and Investissement Québec. With funding obtained through this deal, LeddarTech plans to commercialize its first embedded software solutions and expand its product offerings.

In a statement, Boulanger hailed the agreement as an “important milestone” for LeddarTech, and claimed it will make the company “one of the rare public companies in the pure-play [advanced driver-assistance systems/autonomous driving] software space.”

Prior to this deal, LeddarTech explored private financing and an IPO before determining that a SPAC was a more “structured” and “predictable” route, Boulanger told Bloomberg.

Founded in 2007, LeddarTech develops environmental-sensing solutions for autonomous vehicles and advanced driver-assistance systems. Within this space, LeddarTech claims it has “a strong early-mover advantage.”

Over the past seven years, LeddarTech claims it has worked on low-level sensor fusion and perception, filing 150 patents and securing 80, covering “foundational technologies” like signal acquisition, perception, and sensor fusion.

“During my tenure at Qualcomm, I experienced the tremendous value that can be created when innovative companies with foundational technologies disrupt industries,” Prospector CEO and former Qualcomm president Derek Aberle said in a statement. “We believe LeddarTech has the potential to do just that.”

Aberle is expected to become chair of LeddarTech’s board. Boulanger, who has led LeddarTech since 2013, intends to retire as CEO once the SPAC transaction is complete, remaining with the firm as a special advisor and a member of its board of directors. Frantz Saintellemy—LeddarTech’s president and COO—is expected to succeed Boulanger as CEO.

The SPAC deal remains subject to customary closing conditions and approval from shareholders and the Superior Court of Justice of Québec.

Feature image courtesy LeddarTech.

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Water sampling, agtech startups among Ontario Genomics’ first cohort for BioCreate program

Charlize Alcaraz — Wed, 14 Jun 2023 15:25:21 +0000

Ontario Genomics, a research organization funded by the provincial and federal governments, has unveiled the eight startups taking part in the first cohort of its BioCreate program.

Of the group of eight, three startups in BioCreate’s inaugural group come from Toronto. Hamilton, Burlington, Oakville, Kitchener, and Kingston each had one representative in the cohort.

Here are BioCreate’s first round of recipients:

AIMA Laboratories (Hamilton)
Index Biosystems (Burlington)
Kraken Sense (Oakville)
Ceragen (Kitchener)
BioFect Innovations (Toronto)
Genecis (Toronto)
Liven Proteins (Toronto)
Performance Plants (Kingston)

Each startup will receive $150,000 from Ontario Genomics, which companies have to match with a $100,000 minimum contribution. Participants will also go through 18 months of mentorship and gain access to infrastructure for their technology and business development.

The startups participating in this cohort are developing genomics technologies for a variety of industries, spanning from healthtech to foodtech, agtech and cleantech.

Genomics is a branch of biotechnology concerned with applying the techniques of genetics and molecular biology to the genetic mapping, sequencing, and data analysis of complete sets of genes.

Kraken Sense, for example, is developing technology that aims to sample any water source to identify bacteria and viruses in real-time. Meanwhile, Performance Plants’ solutions are focused on helping growers produce crops that are “climate change-resistant.”

As the companies go through BioCreate, they will also work with one or more BioCreate partners and Ontario Genomics’ BioCreate team to develop a pitch deck to present at the investor showcase at the end of the program.

Ontario Genomics’ partners include Waterloo-based business hub Velocity, Synapse Life Sciences Consortium, Toronto Metropolitan University’s Science Discovery Zone, and Cleantech Commons.

Created in 2000, Ontario Genomics is mandated to support innovators across the province that are developing genomic technologies in the health, agricultural, and environmental sectors.

Ontario Genomics launched the BioCreate program in October 2022 with an $11.6-million budget. The program is funded in part by the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

Applications are open for the second cohort of the BioCreate program until June 30. Ontario Genomics said it aims to have two cohorts this fall.

Featured image courtesy Kraken Sense.

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Collision whispers, new AI officer, fundraising landscape the talk of Vancouver Startup Week 2023

Douglas Soltys — Wed, 14 Jun 2023 10:00:12 +0000

Vancouver Startup Week (VSW), a volunteer-run tech event, finally returned to its in-person format for the first time since the COVID-19 pandemic.

The event ran from June 2 to June 9 at various locations across downtown Vancouver. The vibes were postive: event venues were often visibly packed and noisy as attendees chatted, giving the week a boisterous feel.

Event locations were scattered around the city, while the BCIT Tech Collider and Good Co. Granville played host to a number of featured events.

Although it can mean a lot of rushing around for attendees, organizers believe the spread-out nature of the event adds to its charm.

“A big focus of Vancouver Startup Week is networking and meeting others,” said VSW co-chair Vivian Lago. “Having events at different spaces around town allows for a change of scenery that helps promote organic conversations and relationships to form, while enjoying our city during walks from one venue to the next.”

Partner companies stepped in to host events under the VSW umbrella. Notable partners included RBCx, Ernst & Young, Osler, Fasken, Innovate BC, Switchboard Public Relations, and Boast.ai.

VSW sets itself apart from larger tech events like Startupfest and Collision by its community-driven model; events are organized by members of the Vancouver tech and startup ecosystem and managed by a team of volunteers headed by VSW co-chairs Katty Wang and Vivian Lago.

The more tech conferences, the merrier?

Buzz about the future of Collision was a hard-to-miss undertone at this year’s iteration of VSW, particularly with the organizers of SAAS NORTH announcing a homegrown alternative in Vancouver amid the uncertainty around Collision’s future in Toronto. BetaKit’s reporting has revealed an emerging behind-the-scenes effort to get the conference to consider Vancouver as its future home.

“Let’s make sure we keep Collision in Canada. And whatever it takes to keep it in Canada, we’ll be supportive.”
– Mayor Ken Sim

Following his VSW fireside chat with Launch Academy’s Ray Walia, BetaKit asked Mayor Ken Sim if he was working to pitch Collision coming to Vancouver. Mayor Sim responded: “I think the primary goal here is let’s make sure we keep Collision in Canada. And whatever it takes to keep it in Canada, we’ll be supportive.”

Sean Verret, a partner at Ernst & Young and VSW panelist, was excited by the idea of more tech conferences coming to Vancouver, whether international or homegrown.

“Anytime a conference like Collision comes anywhere, it’s going to spur lots of innovation, lots of great conversation, and it’s going to help feed the economy. So, bringing Collision here would be a great opportunity for the city and for the province,” Verret said.

He said he was also supportive of the alternative prospect of a new, local tech conference focusing on the western provinces or just B.C.

Lago echoed the sentiment.

“Vancouver needs more large-scale conferences that our local entrepreneurs and businesses can take advantage of and to attract international guests and investors to our world-class city,” she said, adding there is room for more than one major event “as long as organizers communicate and work to collaborate and complement each other for the benefit of the community.”

Vancouver to hire chief AI officer, AI expert approves

At a fireside chat, Mayor Sim touched on a number of topics, including promoting Vancouver’s standing among technology-focused cities and shepherding AI development at the municipal level.

To that end, Ken Sim announced Vancouver would be looking to hire a Chief AI officer. When asked by BetaKit about his thoughts on this development, AI expert Gary Marcus responded, “I mean probably, every major jurisdiction is going to need to [hire a Chief AI Officer] soon.”

Raising capital in 2023: “we are at the precipice of a recession”

Spring Activator, a Vancouver-based accelerator focused on impact investing, hosted the first event of the conference at BCIT’s Tech Collider titled: “Welcome to Vancouver: Raising Capital in 2023.”

“We are at the precipice of a recession… we haven’t seen any IPOs this quarter in Canada.”

The potential impacts of the slowdown in venture—with deal volume in BC dropping to a three-year low at the start of 2023—were top of mind, despite the idea floated by some market watchers on social media that early-stage funding may fare better than might be expected in a downturn.

In an interview after the panel, Spring managing partner Olivia Hornby said, “We are at the precipice of a recession… we haven’t seen any IPOs this quarter in Canada… we’re seeing down rounds, we’re seeing bridge loans… and it’s slowly trickling down [to seed and pre-seed].”

Davina MacPhail, Spring’s investment director, did note, however, that the impact venture space is slightly more sheltered because of the recent amount of capital raised from LPs and the sheer quantity of dry powder potentially available for startups that fit impact theses.

Calls for Canada’s cleantech sector to respond to disruption by US Inflation Reduction Act

RBCx and Ernst & Young collaborated to saturate VSW’s schedule with multiple panel offerings. One of the main takeaways from these panels were insights into the US Inflation Reduction Act and its impact on the north american cleantech sector.

As part of a panel moderated by RBCx VP Dean Chamberland, Ernst & Young partner Sean Verret offered this hot take.

“Nobody can match what the USA has done with their IRA program. It’s not matchable; there’s just not the capital available” Verret said in regards to clean energy credits.

He went on to detail how one client aims to save billions through this act, while other organizations are looking to move to the United States, both lured by enormous savings potential outlined in the IRA.

“It’s hard to compete… And I’m not sure in Canada we have a real response right now,” he said.

Feature image courtesy Vancouver Startup Week. Inset image courtesy Mayor Ken Sim.

The post Collision whispers, new AI officer, fundraising landscape the talk of Vancouver Startup Week 2023 first appeared on BetaKit.

A|I: The AI Times – Microsoft is moving top AI experts from China to Canada

Alex Riehl — Wed, 14 Jun 2023 09:00:45 +0000

The AI Times is a weekly newsletter covering the biggest AI, machine learning, big data, and automation news from around the globe.

If you want to read A|I before anyone else, make sure to subscribe using the form at the bottom of this page.

Cohere announces $270-million USD Series C from Inovia, Nvidia, Oracle, Salesforce (BETAKIT)

Toronto-based artificial intelligence startup Cohere, which competes against ChatGPT creator OpenAI, has closed $270 million USD in Series C financing to fuel enterprise adoption of generative AI.

Nvidia's CEO Jensen Huang claimed that Cohere has already made “foundational contributions to generative AI,” adding that the company’s service will help businesses globally harness the tech’s capabilities.

Microsoft to move top AI experts from China to new lab in Canada (FINANCIAL TIMES)

Microsoft is moving some of its best artificial intelligence researchers from China to Canada in a move that threatens to gut an essential training ground for the Asian country’s tech talent.

Those with knowledge of the decision described it as a response to heightened political tensions between the US and China, as well as a defensive manoeuvre to stop top talent from being poached by domestic tech groups desperate for AI researchers to develop domestic versions of OpenAI’s ChatGPT.

EvenUp raises $50.5 million in Clio-backed round for AI that turns raw files into legal documents for personal injury lawyers (BETAKIT)

EvenUp, a startup established by three founders who finished their studies in Canada, aims to even the playing field in personal injury settlements with a recently closed a $50.5 million Series B.

The startup offers a generative AI product that can turn raw files such as medical records, bills, and police reports, into legal documents for injury lawyers.

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Europe wants platforms to label AI-generated content to fight disinformation (TECHCRUNCH)

The European Union is leaning on signatories to its Code of Practice on Online Disinformation to label deepfakes and other AI-generated content.

The commissioner said the EU wants labels for deepfakes and other AI generated content to be clear and fast — so normal users will immediately be able to understand that a piece of content they’re being presented with has been created by a machine, not a person.

Vietnam’s FPT and Quebec’s Mila renew three-year strategic partnership, vow to practice responsible AI (BETAKIT)

Vietnam-based FPT and Quebec-based Mila announced the renewal of a three-year strategic partnership that will see the two organizations explore collaboration on artificial intelligence (AI) research models, while promoting responsible AI.

14 Charts That Tell the Story of AI Right Now (NEWCOMER)

Newcomer made 14 data visualizations to make sense of what’s happening in the AI space right now from funding to GitHub repositories.

Meta plans to put AI everywhere on its platforms (AXIOS)

Meta CEO Mark Zuckerberg announced a plan to employees on Thursday that will see it put generative AI text, image and video generators into its flagship products, such as Facebook and Instagram.

Here’s how Canada’s top 10 cities rank in the global startup ecosystem (BETAKIT)

Apple’s Journal app needs to read the room (THE VERGE)

The Verge's Victoria Song writes her concerns around Apple's "half-baked" decision to integrate machine learning into its recently unveiled journalling app.

York University partners with OneEleven to launch joint venture studio for new tech MBA degree (BETAKIT)

York University’s Schulich School of Business is partnering with Toronto-based tech hub OneEleven to establish a joint venture studio.

The venture studio will match students with member companies from both OneEleven and Schulich’s startup communities, who will complete pro bono product and fundraising analysis for select startups.

Nvidia’s AI software tricked into leaking data (FINANCIAL TIMES)

A feature in Nvidia’s artificial intelligence software can be manipulated into ignoring safety restraints and reveal private information, according to new research.

The ease with which the researchers defeated the safeguards highlights the challenges AI companies face in attempting to commercialise one of the most promising technologies to emerge from Silicon Valley for years.

The post A|I: The AI Times – Microsoft is moving top AI experts from China to Canada first appeared on BetaKit.

Rollout of Canada’s Real-Time Rail payment system delayed again as project undergoes second review this year

Josh Scott — Tue, 13 Jun 2023 22:13:21 +0000

Payments Canada has announced that the launch of the country’s forthcoming Real-Time Rail (RTR) payment system has been delayed once more.

The organization cited “current delivery delays, unrelated to the exchange technology components,” adding that it is also conducting another review.

“To understand and mitigate any future delays in the remainder of the program, Payments Canada, with full support from our Board of Directors and regulators, is undertaking a targeted review of risks identified in the delivery of the RTR,” noted Payments Canada in a June 13 announcement shared on the organization’s website.

“Payments Canada recognizes that timelines have shifted … and acknowledges the implications of delays to the payment ecosystem.”

This marks yet another delay for the RTR system, which Payments Canada first promised to deliver in 2022, before rescheduling its launch to mid-2023. It also represents the initiative’s second review in recent months, following a third-party delivery assurance review that concluded during Q1 and focused on “program management, people, and process.”

“Payments Canada recognizes that timelines have shifted since the RTR program was launched and acknowledges the implications of delays to the payment ecosystem,” stated the organization.

Canada is currently developing an RTR system meant to modernize the country’s core payments infrastructure that will allow for payments to be sent and received within seconds. These efforts are being spearheaded by Payments Canada, a non-profit organization that reports to the Government of Canada.

Interac has been selected as the RTR’s exchange provider, Mastercard’s Vocalink was chosen as its clearing and settlement solution provider, and Tata Consultancy Services has been tasked with integrating the system.

A number of different industry stakeholders have previously called into question the delays in the RTR system and the introduction of open banking in Canada. Last year, Fintechs Canada executive director Alex Vronces described both to BetaKit as “disastrous” for the Canadian FinTech sector, calling the 2022 RTR delay “disappointing” but also “not a surprise.”

“Things have been absurd from the get-go,” he added. “We’ve asked banks to invest in and build a payment system that their competitors will use to compete with them.”

Per Payments Canada, this latest review will take approximately three months, after which the organization expects to provide “an action plan for the path forward.” Though vendor delivery activities will continue during this time, Payments Canada will “suspend or shift the focus of some RTR program activities” while the review is executed.

Feature image courtesy Mohamed Hassan via Pixabay.

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Dapper Labs makes investment in Web3 gaming company GameOn

Charlize Alcaraz — Tue, 13 Jun 2023 20:24:24 +0000

Vancouver-based Web3 game developer GameOn has raised $1.7 million in funding from Lightning Capital and Dapper Labs for its own gaming platform for digital collectibles, PLAYN3XT.

Of the $1.7 million, digital-asset investment firm Lightning Capital provided $1.2 million in a series of convertible notes. Dapper Labs’ contribution came in the form of a non-dilutive grant from its $725-million Flow Ecosystem Fund, which invests in developers building apps and games on Dapper Labs’ Flow blockchain.

Dapper Labs has made several investments through the Flow fund since its launch last year. This includes JUKE and NFT Genius, two American companies also in the digital collectibles space.

The amount that Dapper Labs contributed was not disclosed. Subtracting Lightning Capital’s portion, $500,000 makes up the rest of the funding.

GameOn’s product team was previously led by Santi Jaramillo, former head of sports at Dapper Labs and creator of NBA Top Shot.

According to GameOn, the funding will be used to further develop its PLAYN3XT gaming platform, which is powering a game for collecting digital fighters called Karateka.

Founded in 2018 by CEO Matt Bailey, GameOn builds games, predictive gaming, and fantasy sports products for companies. It is a publicly-traded company, listing on the Canadian Securities Exchange and the OTCQB Venture Market in 2021.

GameOn’s PLAYN3XT platform allows sports and gaming fans to own and use their digital collectibles through interactive gameplay. Some of its users include the likes of NBCUniversal, the Women’s National Basketball Association (WNBA), and Dick’s Sporting Goods.

In Karateka, for example, users can play with their digital fighters for a chance to win prizes related to Karate Combat, a sports league for professional combat. Prizes could include VIP tickets to shows, joining the broadcast booth with commentators, fighter meet-and-greets, and signed merchandise, among others.

GameOn’s team comprises experienced leaders across the sports, media, and gaming industries. Its product team was previously led by Santi Jaramillo, former head of sports at Dapper Labs and creator of NBA Top Shot. Jaramillo left GameOn in 2022 to join Ioconic, a venture studio based in the United Kingdom.

Prior to creating GameOn, Bailey had a sales and marketing career in sports business. He previously worked for brands like the Brooklyn Nets and Barclays Center.

Under Bailey’s leadership, he said GameOn has secured more than $6 million in funding. He said this investment from Lightning Capital and Dapper Labs, which he called “Web3 powerhouses,” is a nod to GameOn’s team, product, and business.

With this raise, Bailey added that GameOn is “aggressively honing in on major league [intellectual property] acquisition that will return scaled profitability.”

GameOn previously received funding from Polygon Studios in 2021 as part of a partnership. In that deal, Polygon would fund 50 percent of GameOn’s ongoing product development costs.

GameOn also received an undisclosed amount of non-dilutive funding from the HBAR foundation in March 2023 to help launch Karateka on the Hedera network, which presents itself as a faster and more secure alternative to blockchains.

Featured image courtesy GameOn.

The post Dapper Labs makes investment in Web3 gaming company GameOn first appeared on BetaKit.

Following Alberta launch, insurtech QuickFacts raises $1.13 million CAD to expand across Canada

Charlize Alcaraz — Tue, 13 Jun 2023 17:17:19 +0000

Halifax-based QuickFacts, which provides competitive intelligence for insurance brokerages, has raised $1.13 million CAD in pre-seed funding as it plans for its Canada-wide expansion.

QuickFacts launched in Alberta in May, and plans to use the funding to support its growth throughout Canada and beyond.

Jeff Barsalou, co-founder and chief revenue officer of QuickFacts, told BetaKit that the financing, which is a convertible debt, was raised in a “rolling close,” starting in February, with a final close in May.

QuickFacts says it is making it much easier for brokers to access underwriting knowledge.

Sandpiper Ventures, which invests in women-led tech companies, led the funding. Other contributors include Killick Capital, as well as a number of angel investors, such as former Carta Worldwide CEO Paul Hill, and former managing director at Marsh Canada Neil Mitchell. Both Women’s Equity Labs in Toronto and Vancouver also invested, including their members Julie McGill, Lori Oliver, and Miriam Mowat.

Since it received the first portion of this funding round in February, QuickFacts claims it has grown its team from 10 employees to 16, hiring people in development, insurance, and marketing roles.

According to QuickFacts, its new hires helped the startup extend its market reach into Western Canada. Previously, QuickFacts was only available within Ontario and Atlantic Canada.

Barsalou co-founded QuickFacts with Christy Silvestri, the company’s president and CEO, who had been a broker for nearly two decades. Silvestri said most of her career was spent answering underwriting questions, which was so time consuming it interfered with her management tasks.

“So, we went and built the software I wanted as a broker and manager,” Silvestri said. “The industry is seeing a shortage of experienced brokers and a shift to remote work, so QuickFacts is making it much easier for brokers to access underwriting knowledge.”

QuickFacts’s platform aggregates insurance-carrier underwriting information for brokerages, compiling it into a single searchable database that compares carrier information. The company claims its software can help a standard brokerage with 25 users save an average of $140,000 per year in “wasted productivity,” or the equivalent of two-full time brokers’ salaries.

Launched in September 2022, QuickFacts said it has over 40 brokerages and 800 active brokers using its software.

After raising this funding, QuickFacts has made several plans to pursue growth. In addition to its searchable database, the startup will offer its solution for insurance-specific workflows this summer.

QuickFacts said it will also start adding functionalities for the commercial market in the fall. The company said it has also partnered with insurance carriers in the United States and United Kingdom for its growth plans in 2024.

Following its Alberta launch, Barsalou told BetaKit that the startup is proceeding to Saskatchewan, then Manitoba, British Columbia, and Québec.

Featured image courtesy QuickFacts.

The post Following Alberta launch, insurtech QuickFacts raises $1.13 million CAD to expand across Canada first appeared on BetaKit.

Wealth management startup OneVest raises $17 million CAD Series A

Charles Mandel — Tue, 13 Jun 2023 13:00:33 +0000

OneVest, the startup that offers what it calls a wealth-as-a-service platform, has raised $17 million CAD in Series A funding.

OMERS Ventures led the round, with participation from existing investors Luge Capital, Panache Ventures, AAF Management, FJ Labs, and new investors Fin Capital, Pivot Investment Partners, and Deloitte Ventures.

This latest raise places total investment to date in OneVest at $24 million CAD. The raise closed in early June.

The Calgary and Toronto-based startup intends to use the funds to accelerate the company’s growth, expand into the United States market, and for other general corporate purposes. OneVest will be expanding its team across multiple departments, including enterprise sales, business operations, product, and engineering. Currently, the startup has 35 employees, but said it expects to double in size by the end of 2023.

The startup plans to announce new enterprise partnerships soon with Schedule 1 Canadian banks and large wealth-management firms.

OneVest’s model is to offer a “wealth-as-a-service” platform to a range of different customers, including consumer FinTech companies, credit unions, traditional banks, and wealth management firms. It partners with companies and operates as the back end for various FinTech services and claims it helps companies launch those products more easily and quickly.

Founded in 2021 by Amar Ahluwalia, Jakob Pizzera, and Nathan Di Lucca, OneVest claims that using its platform, financial institutions can seamlessly integrate and configure various components of wealth-management offerings for their customers, based on their specific needs and requirements. It also allows enterprises to automate and streamline administrative and office functions, which currently rely heavily on manual processes.

Ahluwalia told BetaKit that the entry into the US could take place within the next year.

“The expansion would be a continuation of our strategy, providing financial institutions with a leading wealth-management technology platform that enables them to expand their product capabilities, enhance distribution, and streamline front, middle, and back-office operations while extending innovative investor and advisor experiences,” he said.

Ahluwalia claimed US enterprises were already showing a strong interest in OneVest and its services.

Laura Lenz, a partner with OMERS Ventures, said the fund believes the market has been primed for a new infrastructure player in the wealth management and FinTech space to emerge for some time. She noted that having had a two-year investment relationship with the startup’s founders and their team, Lenz said that OMERS knows they are “best in class.”

“And the data reinforces our view,” she said. “They have consistently been able to sign new customers at an accelerating pace. It is clear there is a need in the market, and they are meeting it.”

According to Ahluwalia, OneVest has dozens of enterprise clients, including a number of financial institutions. He said over the coming weeks, the startup will announce new enterprise partnerships with Schedule 1 Canadian banks and large wealth-management firms.

OneVest began forging partnerships in 2022, teaming up with Neo Financial to help manage that startup’s investment portfolios, and joining forces with corporate-credit startup Caary and FinTech Nuula to launch what the latter called it super app in Canada. Nuula has since been acquired by US-based Nav Technologies following the collapse of its Series A round this past January.

Nuula claims its app helps small business owners track their cash flow in real time, aids them in monitoring financial and commercial metrics, and allows them to track customer sentiment, including online ratings and reviews.

Caary’s corporate credit card is offered in the Nuula app to Canadian customers, while OneVest is providing personalized investment portfolios within the app.

Nuula said it would move ahead with the super app combining Nuula’s technology with Caary and OneVest.

The post Wealth management startup OneVest raises $17 million CAD Series A first appeared on BetaKit.

Applications are open for Google’s startup accelerators for women and Black founders

Charlize Alcaraz — Tue, 13 Jun 2023 12:00:35 +0000

Google has opened applications for its Black Founders and Women Founders startup accelerator programs.

The deadline to apply for the Women Founders program is on July 25, while the Black Founders program is taking applications until August 2.

Canadians were the minority in the 2022 cohorts for both programs.

According to Google, it will select twelve startups from across North America for each program, which are both three-month, virtual bootcamps. Participants will receive mentorship and technical project support, as well as attend workshops focused on product design, customer acquisition, and leadership development.

The American tech giant launched both the Women Founders and Black Founders programs in 2020. Though the program for women has been available to both Canada and the United States (US) since its inception, the accelerator for Black entrepreneurs was first made available in the US, then extended to Canadians a year later.

In the previous cohort for women founders, three Canadians were selected to participate among a group of 12. They were Blossom Social Emaww, and MedEssist. The program for Black founders saw the same amount of Canadians last year, comprising Node, Beam.city DNA, and HumanSquad.

Though Canadians were the minority in the 2022 cohorts for both programs, compared to their counterparts in the US, it is an improvement from past representation. For example, the 2021 installation of the Black Founders cohort only had one Canadian company, which was Toronto-based Mommy Monitor.

Google launched its first Canadian accelerator in Kitchener-Waterloo in February 2020. It has opened several other programs to Canadian companies since then, such as those focused on Climate Change and building on cloud computing services.

For past accelerators, Google typically launches the pilot in the US then extends it to Canadians. In April, however, Google did the reverse.

Google launched its accelerator program for cloud-native startups in Canada in 2021. After another year of offering the program exclusively to Canadian companies, Google expanded it to the United States this year, citing “strong demand” for accelerators focused on cloud services.

Featured image courtesy Google for Startups.

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S|W: The SaaS Weekly – Instabase notches $2 billion valuation on the back of AI

Alex Riehl — Tue, 13 Jun 2023 09:00:18 +0000

The SaaS Weekly is a weekly newsletter covering major SaaS news from Canada and around the globe.

Subscribe to S|W using the form at the bottom of this page to ensure you don’t miss out on the most important SaaS news every week!

GSoft secures $125-million CDPQ investment to pursue growth through acquisitions (BETAKIT)

Montreal-based GSoft, which provides software solutions for employee experience, has secured a $125-million investment from Caisse de dépôt et placement du Québec (CDPQ) to pursue more acquisitions.

GSoft's first acquisition was of Quebec City learning management system company, Didacte, in February and was followed by a significant period of growth.

Startup Instabase Notches $2 Billion Valuation, Incorporates New AI (BLOOMBERG)

Business services startup Instabase Inc. has raised a new round of funding of $45 million that doubles its valuation to $2 billion, a deal buoyed by the company’s use of new generative artificial intelligence tools in its suite of corporate products.

Saskatoon startups Rivercity, 7shifts team up to enhance food temperature monitoring for restaurants (BETAKIT)

Rivercity Innovations (RCI) has launched the integration of its cold chain monitoring sensors and software with 7shifts, which provides a restaurant team management platform.

In this partnership, RCI will deliver its temperature monitoring services to 7shifts’ more than 40,000 clients.

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Byju’s to lay off ~1,000 employees (THE MORNING CONTEXT)

India’s largest edtech company, which was valued north of $22 billion in its last funding round, is on course to fire around 1,000 people.

The last mass layoffs happened in January this year, when the company let go of around 5,000 people.

Here’s how Canada’s top 10 cities rank in the global startup ecosystem (BETAKIT)

Former ByteDance Executive Claims Chinese Communist Party Accessed TikTok’s Hong Kong User Data (THE WALL STREET JOURNAL)

A former executive at ByteDance, the parent company of the hit video-sharing app TikTok, alleges in a legal filing that a committee of China’s Communist Party members accessed the data of TikTok users in Hong Kong in 2018—a contention the company denies.

York University partners with OneEleven to launch joint venture studio for new tech MBA degree (BETAKIT)

York University’s Schulich School of Business is partnering with Toronto-based tech hub OneEleven to establish a joint venture studio.

The venture studio will match students with member companies from both OneEleven and Schulich’s startup communities, who will complete pro bono product and fundraising analysis for select startups.

Managed cybersecurity provider Blackpoint Cyber reels in $190M from investors (SILICON ANGLE)

Blackpoint Cyber, a startup that provides managed cybersecurity services using an internally developed software platform, has raised $190 million in fresh funding.

The main highlight of the company’s product portfolio is an MDR, or managed detection and response, service. The service allows MSPs to have Blackpoint Cyber monitor their corporate customers’ infrastructure for breach indicators.

PSG makes investment in Hostaway to expand its vacation-rental software amid travel rebound (BETAKIT)

Growth equity firm PSG has provided Toronto startup Hostaway, which provides software for managing short-term and vacation rentals, with $237.7 million CAD ($175 million USD) in growth financing.

Sources indicated to BetaKit that this has led PSG holding a majority ownership stake in Hostaway, but Hostaway declined to confirm.

GitLab shares rocket 31% as software vendor boosts forecast, announces generative A.I. plans (CNBC)

GitLab shares rose 31 percent on Tuesday after the provider of code-deployment software notched a loss that was narrower than analysts expected while reporting an improved full-year forecast.

Sid Sijbrandij, GitLab’s CEO, said more revenue could come from a generative artificial intelligence add-on that will cost $9 per user per month when billed annually.

Vrify secures $6 million Series A to help attract mining investment (BETAKIT)

Vrify, a mining communications startup, has announced a $6-million Series A raise that the company hopes will drive market expansion and updates to its technology platform.

Mining companies use Vrify’s 3D visualization technology and 360-degree mining site virtual tours to refine communications and help attract and secure investments.

Pigment secures $88 million for its business planning tool that will make you forget about Excel (TECHCRUNCH)

Paris-based startup Pigment has raised a Series C round of $88 million to take on Microsoft Excel and offer a business planning platform that works better than products from enterprise software behemoths, such as Oracle or SAP.

Reddit to Lay Off About 90 Employees and Slow Hiring Amid Restructuring (THE WALL STREET JOURNAL)

Social-media company Reddit is laying off roughly 90 employees and slowing hiring as it restructures key parts of its business, such as the controversial decision to charge third-party apps to use its API, ahead of its IPO.

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Tech talent-sourcing network VanHack secures $3 million for global expansion

Charlize Alcaraz — Mon, 12 Jun 2023 20:26:35 +0000

VanHack, a Vancouver-based tech talent sourcing network, has secured a $3-million investment from Texas-based B2B software venture fund Golden Section. According to Golden Section, it will work with VanHack to expand its global presence.

Driven by the rising adoption of digital technologies, Fortune Business Insights estimates the global online recruitment market to reach a valuation of $30.87 billion by 2030. With backing from Golden Section, VanHack aims to take part in this opportunity for growth with an international expansion.

Founded by Ilya Brotzky in 2015, VanHack’s software features proprietary AI matching algorithms to improve the efficiency of the hiring process for technical professionals.

VanHack’s vision is to create a “borderless world by empowering tech talent worldwide.”

VanHack uses AI and its team of recruiters send out candidate profiles to its partner companies such as SkipTheDishes, Booking.com, Rogers, and Deloitte. When a candidate is selected for an interview through VanHack, they can work with its interview advisor specialists to prepare. This includes getting information about the hiring company and conducting mock interviews, among other supports.

In addition, VanHack’s platform offers personalized career coaching, salary trend insights, and training resources.

VanHack claims it has grown to over 400,000 members across more than 100 countries since its inception. The organization said it has helped more than 1,000 tech professionals get hired in Canada and the European Union.

Ultimately, VanHack’s vision is to create a “borderless world by empowering tech talent worldwide,” according to Golden Section. Beyond its platform and services, the network has also launched several petitions to address the shortage of tech talent in Canada.

Last year, VanHack launched a petition urging the government to remove the Labour Market Benefits Plan (LMBP), which is part of the application for the Global Talent Stream, a federal program that allows skilled workers to get a work permit within two weeks of applying. In this petition, VanHack claims omitting the plan from the application will simplify the process. The LMBP outlines the worker’s commitment to activities that will benefit the Canadian labour market.

VanHack also called for the launch of the Global Talent Stream through a petition in 2016.

VanHack had mostly been bootstrapped up until this point. It previously raised $120,000 from Techstars in 2017.

After securing this funding, Golden Section said that VanHack will “strengthen” its sales and marketing initiatives as it pursues growth. Brotzky told BetaKit that VanHack aims to double the number of people hired through its platform to 2,000 hires.

On June 14, VanHack will be hosting a speed interviewing day for women in tech who are skilled in Javascript.

Featured image courtesy VanHack.

The post Tech talent-sourcing network VanHack secures $3 million for global expansion first appeared on BetaKit.

Canadian app Apollo to shut down amid user protest against Reddit API pricing

Charlize Alcaraz — Mon, 12 Jun 2023 17:12:06 +0000

Apollo founder Christian Selig announced the forthcoming closure last week. In a statement made in the r/Apollo subreddit, or online community on Reddit, he noted the high costs of continuing to run Apollo and the short transition period that Reddit offered to third-party app developers. Selig, who is the only developer working on Apollo, is based in Halifax.

Selig said he would have to pay Reddit $2 million per month, or over $20 million per year, to continue Apollo.

More than 6,000 subreddits are going dark this week, making themselves closed for non-community members, to protest Reddit’s new developers fees and the potential loss of third-party apps because of this decision.

In April, Reddit announced significant changes that would be coming to its API. Notably, it is moving it to a paid model for third-party applications that require large-scale capabilities, like Apollo.

With the new changes, developers would be charged $12,000 per 50 million API requests. Selig said this would present a “large cost” to Apollo, likening it to Twitter’s recent move towards “outstandingly high API prices.”

With Apollo’s current usage, Selig claims he would have to dole out $2 million per month, or over $20 million per year.

Each API request represents one action completed with Reddit, such as upvoting, downvoting, commenting, loading posts, loading subreddits, checking for new messages, and blocking users, among others.

The $2-million estimate is “not an exaggeration,” according to Selig, who said the number is based on the seven billion API requests that Apollo made just last month.

Selig, a former Apple intern, launched Apollo in 2017 with the goal of creating an app for Reddit that would look like a product Apple itself had built. The platform competes with Reddit’s own mobile app and is designed to provide a better user interface for iOS users.

Apollo is a free app, though it offers two paid options, Pro and Ultra, that offer additional capabilities to users. The app has about 1.5 million monthly users, of which 50,000 are paid, Selig noted.

As Selig noted, Reddit is implementing its paid model for APIs after Twitter introduced its API price structures in March, which has been publicly criticized for pricing out third-party app developers like researchers, emergency-alert services, and others.

Twitter offers three different tiers for enterprises. The cheapest version gives access to 50 million tweets and is priced at $42,000 per month. In a year, that would amount to just north of half a million: $504,000.

Twitter’s paid API is just one of several new revenue channels that Elon Musk introduced to the social media platform since he purchased it last year. Musk has acknowledged he overpaid for Twitter, which he acquired for $44 billion, and is now reportedly worth one-third of the purchase price.

Reddit’s new paid API policies could be an effort to optimize its cash flow, as well as it braces for the impact of the downturn in the tech sector.

Last week, Reddit slashed its workforce by five percent and reduced its hiring plans, following a trend of tech companies laying off employees to cut costs in a difficult fundraising environment.

Featured image courtesy Apollo.

The post Canadian app Apollo to shut down amid user protest against Reddit API pricing first appeared on BetaKit.

AI prompting Is the new coding for kids

Douglas Soltys — Mon, 12 Jun 2023 10:00:35 +0000

When I was in school, computer science was an elective course that focused mainly on teaching kids the basics of how to code. It was definitely a less popular option than taking music or phys ed. and when I entered the technology industry full time in the early 2000s, I kicked myself for not loading up on tech courses (as many of you likely did).

The good news is that basic coding is now a required part of curriculums around the world. The bad news is that it’s all far too little, far too late.

The good news is that times have changed: basic coding is now a required part of the curriculum in school districts around the world, and after-school programs that teach Python, game design, and robotics are completely common. The bad news is that it’s all far too little, far too late—and a focus on coding is woefully behind the times. We are now at the precipice of a long-predicted era in technology, in which artificial intelligence and machine learning will disrupt everything we know and understand about the relationship between humans and computers. For education leaders, this moment—the tipping point of AI innovation and adoption across all job sectors—requires a radical rethink, focused on developing authentic machine learning literacy for students of all ages. And as tech entrepreneurs, you have a vital role to play in kick-starting this revolution.

At its core, literacy around the use of all forms of AI, particularly generative AI, comes down to understanding prompt engineering. Technocrats will see this as obvious, but in mainstream education, this is still a nascent concept—and it’s causing school and system leaders’ heads to spin. But I get it: as the pace of change increases exponentially, it’s logical for them to wonder whether investing time and resources into a major shift in tech skill development is really worth it. When I hear this from education leaders (and I hear it all the time), this is what I tell them (and I encourage you to do the same): understanding how, when, and why to prompt an AI engine is not just a tech skill—it’s a life skill, one at which today’s students must become adept.

Unfortunately, the current dominant narrative about AI in many schools is that it threatens academic integrity. But if the goal of education is to prepare students for the world they are set to inherit, this change must happen now; according to the recently released 2023 edition of the World Economic Forum’s Future of Jobs Report, more than 85 percent of organizations cite increased adoption of new and frontier technologies and broadening digital access as the trends most likely to drive transformation.

Major media outlets, meanwhile, are falling over themselves to declare prompt engineering as the next big job opportunity—in April, for example, Time reporter Nik Popli described it as a career that “pays six-figure salaries and doesn’t require a degree in computer engineering, or even advanced coding skills.” All this buzz has also given rise to scores of fly-by-night companies advertising “bootcamps” in AI prompt engineering, designed to appeal to those already in the market for a (new) job. Education, though, often moves at a different pace, which explains to some degree the defensive reaction of many educators who worry about the risks of opening the doors to AI in their classrooms. In my organization’s work in schools and districts, we have already seen exciting new pilot programs and initiatives take root, and though much of the focus tends to be on using machine learning to automate thankless tasks (of which there are many in the world of education), I’ve witnessed some exciting direct-to-student initiatives as well.

So here’s my call to arms: as job creators, innovators, and—in many cases—parents, tech entrepreneurs have a vital role to play in leading schools through this change. Here are three important messages you can take directly to education leaders.

AI prompting and machine learning literacy is the new coding. Now is the time to ensure that young people have authentic opportunities to build their understanding of how to use AI effectively—not just in tech courses, but across the entire curriculum.

Prompt engineering is an exercise in critical and analytical thinking. This is important for two reasons. First, presenting AI as a tool to develop well-known skills provides a “softer landing” for a slow-to-change sector like education. Second, these are the skills job providers are calling out for the most; guess which two skills were rated to be of greatest importance in the 2023 Future of Jobs Report? Learning how to use AI effectively is a golden opportunity for students to solve real problems and build critical thinking skills.

This is just the tip of the iceberg. As transformative and disruptive as ChatGPT has been in the past six months, we know there is so much more to come. Shifting to a growth mindset now around emerging technologies lays the groundwork for other major advancements to come—including infinitely more complex machine learning, not to mention widespread automation, quantum computing, and beyond.

I started Future Design School to address pressing needs in education—and shifting to focus on developing AI skills is absolutely critical at this moment. Innovative people (like BetaKit readers) are lighting the way, and education must innovate accordingly. You are already wagging the dog, so I encourage you to wag even harder! The demand you’re generating for these skills is indeed being heard, and the louder it gets, the more we will all accomplish and the better Canada will be situated in this quickly changing economy.

Learn more about Future Design School’s innovative work around AI in education. Email team@futuredesignschool.com to book a meeting with a member of our senior leadership team or message Sarah directly on Twitter: @sarahprevette.

The post AI prompting Is the new coding for kids first appeared on BetaKit.

F|T: The FinTech Times – SEC sets sights on crypto firms Binance and Coinbase

Alex Riehl — Mon, 12 Jun 2023 09:30:42 +0000

Welcome to the FinTech Times, a weekly newsletter covering the biggest FinTech news from around the globe. If you want to read F|T before anyone else, make sure to subscribe using the form at the bottom of this page.

Interac appoints Jeremy Wilmot as new president and CEO (BETAKIT)

Canadian payment services provider Interac has announced that Jeremy Wilmot is taking over from Mark O’Connell as the company’s president and CEO, effective August 1.

O'Connell has helmed the company since 2006, led it through its 2018 restructuring, and plans to advise through the transition before retiring at the end of October.

SEC’s Gary Gensler Had Crypto in His Sights for Years. Now He’s Suing Binance and Coinbase. (THE WALL STREET JOURNAL)

In his two years running the Securities and Exchange Commission, chairperson Gary Gensler or his staff met with cryptocurrency exchanges that were seeking special exemptions from the laws governing the rest of Wall Street dozens of times.

Now the SEC is unleashing a barrage of enforcement actions against crypto’s biggest middlemen, Binance and Coinbase, in a fight that has existential stakes for the companies and could define Gensler’s legacy.

As crypto markets consolidate, Bitbuy debuts new staking offering (BETAKIT)

Even as one major crypto trading platform, Binance, indicated it was exiting the Canadian market, Bitbuy Technologies has moved to introduce more crypto offerings.

Bitbuy, a subsidiary of WonderFi Technologies, said June 2 that it would begin adding Cardano, a public blockchain platform, to its staking services.

POWERED BY: TECHNATIONAddressing Canada’s talent gap in the tech industry boils down to removing the barriers for equity-deserving groups

The ADaPT program is funded by the Government of Canada’s Future Skills Centre and led by Toronto Metropolitan University’s Diversity Institute in collaboration with TECHNATION Canada.

To support future talent in thriving tech careers within Canada’s changing job market and become an ADaPT employer, find out more here.

How a $13 Billion Fintech That Angered Jamie Dimon Won Over Banks (BLOOMBERG)

Over the past decade, Plaid’s digital pipes have enabled 1 in every 3 people with a US bank account to connect it to the app or service of their choosing. What’s next for Zach Perret’s $13.4 billion company?

BC regulator suspends ex-Blok Technologies CEO, CFO from investment market for misrepresenting 2018 share sale (BETAKIT)

Per the BCSC, ex-Blok CEO Robert Earle Dawson and ex-Blok CFO David Malcolm Alexander have separately agreed to suspensions after Blok failed to disclose that it would retain less than 18 percent of an announced $5.4 million private placement in 2018.

Crypto.com to Close US Institutional Service Amid SEC's Crypto Crackdown (DECRYPT)

Cryptocurrency exchange Crypto.com said Friday that it will wind down its institutional service for American clients on June 21.

The Singapore-based digital asset platform added that it made the decision due to "limited demand from institutions in the U.S. in the current market landscape."

Here’s how Canada’s top 10 cities rank in the global startup ecosystem (BETAKIT)

With LayerZero, Vancouver's Bryan Pellegrino goes all in (THE LOGIC)

The former pro poker player and AI whiz has ‘no regrets’ about launching US$3B crypto startup. Vancouver-based LayerZero raised $120 million USD at a $3 billion valuation at a time when venture capital funding for tech startups was slowing down—and the collapse of investor FTX had rendered the very survival of the sector uncertain.

Fintech firm Tingo's shares slump as short-seller Hindenburg takes aim (REUTERS)

Tingo Group shares halved in value on Tuesday after short-seller Hindenburg Research criticized its founder and alleged that the fintech firm had "fabricated" its financials.

Hindenburg also said Tingo was an "exceptionally obvious scam" and called out founder Dozy Mmobuosi's claims of having developed "the first mobile payment app in Nigeria."

York University partners with OneEleven to launch joint venture studio for new tech MBA degree (BETAKIT)

York University’s Schulich School of Business is partnering with Toronto-based tech hub OneEleven to establish a joint venture studio.

The venture studio will match students with member companies from both OneEleven and Schulich’s startup communities, who will complete pro bono product and fundraising analysis for select startups.

Tim Hortons to launch credit card through mobile rewards app (TORONTO STAR)

Tim Hortons is launching a Neo Financial powered credit card that can be used through its mobile app, the latest move into an increasingly competitive rewards space.

Tims Financial is a new division of Tim Hortons that will offer a no-annual-fee Mastercard as a result of Neo Financial's bet on embedded finance.

Informal Systems raises $5.3 million in first funding round
(THE BLOCK)

Toronto-based Informal Systems raised $5.3 million to support its work as a core developing team in the Cosmos ecosystem.

Informal Systems has helped build vital technology such as Interchain Security, a way for blockchains to lean on the Cosmos Hub for its security, rather than running their own sets of validators.

The post F|T: The FinTech Times – SEC sets sights on crypto firms Binance and Coinbase first appeared on BetaKit.

Three Canadian cities ranked in the global top 50 startup ecosystems

Alex Riehl — Mon, 12 Jun 2023 09:00:41 +0000

Welcome to BetaKit’s startup stories of the week! Here, you will find the week’s most important news, features, and editorials published on BetaKit.

If you prefer this update hit your inbox every week, make sure to subscribe to the BetaKit Newsletter using the form at the bottom of this page.

Latest Funding, Acquisitions, and Layoffs

SF – EvenUp – $50.5M (read more)
BC – Pacifican invests over $4 million into two projects (read more)
CGY – Over $110K awarded to startups at Inventures (read more)
MIS – Vive Crop Protection – $11.2M (read more)
TOR – Twig Fertility – $8M (read more)
MTL – GSoft – $125M (read more)
MTL – Oamo – $1.7M (read more)

The BetaKit Podcast

THE COLLISION CONVERSATION IS A MICROCOSM FOR CANADIAN TECH

People across Canada are asking questions about Collision. The answers say a lot about Canadian tech.

CANADA IS IN A HEALTH CARE CRISIS. WHAT’S THE PRESCRIPTION?

“We are in a time of the worst health care crisis we’ve seen in Canada. It is really close to a collapse of the system across the country.”

Brett Belchetz (Maple) and Alexandra Greenhill (Careteam Technologies) join to diagnose the failings of Canada’s health care system before offering a prescription. How can innovators help? Can a balance be struck between public and private care? The doctors will see you now.

Subscribe to B|K: The BetaKit Newsletter

The post Three Canadian cities ranked in the global top 50 startup ecosystems first appeared on BetaKit.

The Collision conversation is a microcosm for Canadian tech

Douglas Soltys — Sun, 11 Jun 2023 22:38:06 +0000

Is Collision staying in Toronto (and for how much)? Is Collision coming to Vancouver instead? Why are Canada’s governments paying foreign companies to compete against local events? Are we a branch plant innovation ecosystem? Do we secretly believe we can’t do it ourselves?

Did Collision ban journalists at The Logic from attending? Is BetaKit filled with ‘scumbag journalists?’

“This is city-states vying with each other to be the most loved child in the Succession drama that is our national discourse.”

These are just a few of the questions currently being asked about Collision, prompted mostly BetaKit’s recent extensive reporting. I can’t tell you we find all the answers on this podcast, but we certainly did our best to set them in context.

Organizing this mess has been helpful in understanding why Collision is sticking in everyone’s craw recently. I mean, some of the reasons are obvious: multi-million dollar price tags to host international events (even if a portion of that price tag is delivered through in-kind offerings) stand out in a city with a budget crisis but no mayoral leadership. The need for provincial and federal support to keep Collision in Toronto will obviously rub event organizers across the country—who do not receive similar support—the wrong way.

But there’s more going on here, and it speaks to Canada as a ‘tech ecosystem’.

Portugal reportedly paid a similar price to what is on the table for Collision here to retain parent event Web Summit. But Portugal is the size of about two Nova Scotias (I did the math). While that country can label a Lisbon-hosted Web Summit as a win for Portuguese innovation, I don’t think many here would say the same for Collision—here, it’s a Toronto event. Put another way, tech events that are truly seen as servicing the whole country wouldn’t need to feature a ‘Vancouver takeover’.

I’ve been told this many times privately in the past few weeks: “I can’t wait until Collision is gone.” And certainly, the price tag and the way Paddy Cosgrave has engaged with BetaKit and Collision with The Logic over the last two months has something to do with that. But those statements also reference a discomfort with Collision having arrived here in the first place.

I don’t know if that discomfort has more to do with Canadian tech’s lack of familiarity with playing on the global stage, or distaste for simply being its host—just another branch plant in our tech portfolio, if you will.

I also don’t know if I’ll be on centre stage at Collision in two weeks talking about any of this. But I know I’ll keep thinking about it and looking for ways to ask these questions in a way that produces useful answers.

Let’s dig in.

Reference links:

Subscribe via: RSS, Apple Podcasts, Spotify, Stitcher, Google Podcasts, YouTube

The BetaKit Podcast is hosted by Douglas Soltys & Rob Kenedi. Edited by Kattie Laur. Sponsored by Goodlawyer.

The post The Collision conversation is a microcosm for Canadian tech first appeared on BetaKit.

Pick up the pace: federal agencies form new body aimed at collaborating on issues related to tech innovations

Charles Mandel — Fri, 09 Jun 2023 21:46:15 +0000

Three Canadian federal agencies are combining forces in order to collaborate on issues related to digital markets and platforms such as artificial intelligence and data portability.

Established on June 8, The Canadian Digital Regulators Forum brings together the Competition Bureau, the Canadian Radio-television and Telecommunications Commission (CRTC), and the Office of the Privacy Commissioner of Canada (OPC).

The new group will not provide formal advice or direction to the member agencies, which remain individually accountable for fulfilling their mandates.

The idea governing the forum is the three agencies can expand their regulatory capacities and will be able to better fulfill their individual mandates through increased participation and cooperation.

The new forum comes hard on the heels of the creation of a new parliamentary caucus on emerging technology that formed after criticizing the government for being too slow to deal with new tech developments.

This partnership will strengthen the work of all three agencies as they keep pace with rapid changes in the digital economy, the agencies announced in a release.

“To best serve Canadians in today’s fast-evolving digital economy, it is critical that regulators collaborate across intersecting spheres,” said Philippe Dufresne, Privacy Commissioner of Canada, in a statement. “This forum will build on one another’s knowledge and expertise and I look forward to working with my colleagues to ensure that we leverage the benefits of emerging digital technologies to support a vibrant digital economy where the fundamental right to privacy is promoted and respected.”

The terms of reference for the forum state that the new group will not provide formal advice or direction to the member agencies, which remain individually accountable for fulfilling their mandates.

Meetings between the member heads will take place one to two times each fiscal year. A core working group will aim to meet quarterly to update the members on relevant developments, share knowledge, seek support, and advance agreed-upon priorities and objectives.

Relevant senior officials and employees from each member agency will make up the core working group.

The three agencies also share the responsibility for enforcing Canada’s Anti-spam Legislation (CASL).

The creation of the forum also comes at a time when a number of bills related to digital information have slowly been making their way through the house into legislation.

They include Bill C-27, which includes new protections for minors as well as Canada’s first legislation regulating the development and deployment of high-impact AI systems; and the so-called streaming bill, Bill C-11.

The latter bill compels streaming platforms such as Netflix, YouTube, TikTok, Amazon Prime, Spotify, and others to add more Canadian content as well as contribute financially to productions.

The post Pick up the pace: federal agencies form new body aimed at collaborating on issues related to tech innovations first appeared on BetaKit.

Three tech companies hiring remote workers in Canada

Alex Riehl — Fri, 09 Jun 2023 19:36:50 +0000

After companies were forced to work remotely during the COVID-19 pandemic, the value of remote work became clear to companies and workers alike. Teleworking can foster flexibility, independence, and reduced costs. While some companies are now encouraging a transition back to the traditional office environment, here are some firms hiring workers in a variety of roles that support working from home. Check out all the organizations recruiting at Jobs.BetaKit for more opportunities.

Wattpad

Wattpad is a global multiplatform entertainment company whose vision is to entertain and connect the world through stories. With millions of users that spend billions of minutes reading and writing original content on its platform, Wattpad has served as a home for the online writing community since 2006.

Wattpad is open to hiring all roles to work remotely provided that those who apply are authorized to work in the United States or Canada, excluding Québec. Currently, the company is looking for a community support specialist to answer user inquiries and act as a liaison between the community and product teams. Those who apply should have one to two years of experience in a similar role and can apply a methodical approach to user problem solving.

Those who are more interested in working in Wattpad’s back end can apply to be a data engineer if they have at least two years of experience in writing high-quality code, with Python or Go in particular. The selected candidate will coordinate with data analysts, software developers, and product managers to design and evolve Wattpad’s existing architecture.

Wattpad also has many other remote positions available, which can be found here.

Fivetran

With an automated data movement platform working for thousands of companies across cloud data platforms, Fivetran is hiring remote workers from around the world to fulfill its mission of making access to data as simple and reliable as electricity.

To achieve this, Fivetran is looking for a VP of systems engineering. Those who apply are expected to show a track record of leading teams that can architect, design, and implement business systems. The person hired to this role will create and manage the execution of a long-term technical vision and ensure 24/7 around-the-world operations and support coverage.

Those outside of management may be interested in applying to be Fivetran’s core UX product designer. Applicants should come prepared with a strong portfolio of work with an outlined design process and outcomes. Successful hires will become an expert on Fivetran’s end-to-end customer experience, performing research with users of the product and internal subject matter experts.

All of Fivetran’s unfilled in-office and remote positions can be found here.

Klue

Klue has built a platform to capture, manage, and communicate market insights from the internet, bringing internal and external data together to leverage practical competitive intelligence for companies to use in their favor.

Currently, Klue is looking to hire a senior front-end engineer to work on building a new front-end architecture, and a senior back-end engineer to optimize data storage and retrieval. Those who apply should have the adequate senior-level of experience and be prepared to give and receive code feedback. While Klue works in Python, Ruby, and Javascript, new services can be built using whatever tools make sense to get the job done.

Klue is also hiring for a VP of engineering and a community and events manager. Those listings can be found here.

The post Three tech companies hiring remote workers in Canada first appeared on BetaKit.

EvenUp raises $50.5 million in Clio-backed round for AI that turns raw files into legal documents for personal injury lawyers

Charlize Alcaraz — Fri, 09 Jun 2023 16:47:12 +0000

EvenUp, a startup established by three founders who finished their studies in Canada, aims to even the playing field in personal injury settlements. The startup offers a generative AI product that can turn raw files such as medical records, bills, and police reports, into legal documents for injury lawyers.

The San Francisco-based company recently closed a $50.5 million Series B round led by Bessemer Venture Partners. Sameer Dholakia, Bessemer partner and co-lead of the firm’s growth investment practice, will join EvenUp’s board.

According to EvenUp, this round brings its total funding raised to $65 million with valuation of $325 million.

Other new investors that participated include the investment arm of Burnaby-based legaltech startup Clio, Bain Capital Ventures, and Behance founder Scott Belsky.

Clio Ventures was launched in 2021 through which Clio backs early-stage partner companies it works with for developing integrations. It recently made an investment in Steno, another legaltech startup, which offers court reporting solutions.

Previous investors in EvenUp who also contributed to this funding include SignalFire, DCM, NXF, and DoorDash executive Gokul Rajaram.

Personal injury lawyers are mandated to ensure the victims they are representing receive the most amount of benefits or compensation in their settlements.

However, most cases are settled out of court and are often kept private, leaving lawyers to guess a settlement proposal for their clients. In turn, the victims can be undercompensated.

In addition, the process of creating the legal documents, also referred to as demand packages, can be time-consuming and prone to error.

EvenUp previously received investments from American rapper Nas and actor Jared Leto.

COO Ray Mieszaniec said he experienced the lack of transparency in personal injury settlements personally. When his father became permanently disabled after being hit by a car, Mieszaniec recalls their lawyer not knowing what an appropriate compensation should be, so his family received a small fraction of what their case was worth.

Mieszaniec, who graduated from Simon Fraser University, is leading EvenUp with McGill University alumni Rami Karabibar (CEO) and Saam Mashhad (chief of product and legal operations).

Proceeds from this round will help EvenUp expand the functionalities of its platform, introduce new products for personal injury and other fields of law, as well as make investments and new hires to support its growth.

EvenUp has made several developments to its offerings leading up to this financing.

This week, EvenUp launched Litty, an AI-powered assistant for personal injury legal practitioners. The startup said Litty is trained on millions of records and hundreds of thousands of case outcomes, meant to interpret raw medical records and create output designed for personal injury use-cases.

According to EvenUp, Litty already powers the demand packages its platform produces.

Short for “litigation,” Litty can summarize disorganized notes and copies of records into clear, coherent medical briefs optimized for injury law, said EvenUp. In coming months, the startup said Litty will be able to autonomously analyze diverse document formats and generate legal output on other aspects of personal injury.

EvenUp has also launched its integration with legal practice operating platform Litify. In this partnership, personal injury attorneys whose practices run on Litify can request demand packages generated by EvenUp’s AI platform, directly from their Litify dashboard.

EvenUp said it can generate a demand package within days and upload the final document directly into Litify.

EvenUp has previously received backing from tech entrepreneurs like Quora CEO Adam D’Angelo and Eventbrite co-founder Kevin Hartz, as well as public figures such as American rapper Nas, actor Jared Leto, and retired professional football player Byron Jones.

EvenUp is not alone in its mission to improve the settlement process for personal injury cases. In Canada, there is Edmonton-based PainWorth, which uses machine learning to simplify claims for personal injury cases. It raised $3.1 million CAD in seed funding in 2022 as it expands its platform to insurance companies.

Featured image courtesy Bain Capital Partners.

The post EvenUp raises $50.5 million in Clio-backed round for AI that turns raw files into legal documents for personal injury lawyers first appeared on BetaKit.

Here’s how Canada’s top 10 cities rank in the global startup ecosystem

Charlize Alcaraz — Fri, 09 Jun 2023 10:00:06 +0000

Multiple cities in Canada’s top 10 startup ecosystems soared through StartupBlink’s global index for 2023.

Israel startup ecosystem map and research centre, StartupBlink, published its Global Startup Ecosystem Index for 2023 in late May. The report provides rankings for entire countries and for individual cities within those countries.

Though Canada maintains the rank of fourth place among 100 countries, the report found that regions within the country experienced significant changes in the last year.

This year, Canada placed 39 cities in StartupBlink’s top 1,000 cities for startups. The top 10 cities in Canada are:

Toronto
Vancouver
Montréal
Ottawa
Kitchener
Calgary
Québec
Edmonton
Kingston
Halifax

In the global ranking this year, Ottawa jumped the most, ascending the roster by 21 points, now in 68th place. Kitchener increased 15 places, currently ranked 76th globally; while Québec City is now at 129th place, up 13 places.

Though a number of Canada’s top 10 cities decreased in ranking, the drop was minor. Compared to last year, Vancouver fell by one point, now 41st on the global list.

Both Alberta-based regions in the top 10 also declined in the global rankings. Calgary dropped seven points while Edmonton went down four; currently ranked 111th and 144th on the StartupBlink’s list of cities across the world, respectively.

There were bigger moves in Canada beyond its top 10 cities, however. Winnipeg and Charlottetown both dropped significantly in the global ranking. Winnipeg, which ranks 13th nationally, went down 96 points in the global ranking, now at 288th place. Notably, Charlottetown declined by almost double, dropping 180 points, now at 675th place globally.

In contrast, two small Ontario regions saw big gains. Saint Catharines, which ranks 21st place in Canada, got a lift by 154 points and is now 552nd place in the global ranking. Owen Sound, which placed 29th overall in Canada, went up 215 points in the international list, ranking at 224th place.

Overall, the top three cities were San Francisco, New York, as well as London, United Kingdom.

StartupBlink’s Canadian ecosystem map includes a sample of 4,097 tech companies, of which 22 startups are identified as unicorns that have $1-billion USD valuations.

StartupBlink’s definition of a startup is any business that offers a technology-enabled solution with the potential to achieve scalability. Its evaluation model uses a sum of three subscores, measuring quantity, quality, and business environment across each region.

More information on StartupBlink’s methodology, Canada’s startup ecosystem, and other countries included in the index can be accessed here.

Featured image courtesy Unsplash.

The post Here’s how Canada’s top 10 cities rank in the global startup ecosystem first appeared on BetaKit.

H|T: The Healthtech Times – Pharma giant Bayer moves deeper into digital health

Alex Riehl — Fri, 09 Jun 2023 09:59:34 +0000

The Healthtech Times is a weekly newsletter covering healthtech news from Canada and around the globe.

Subscribe to H|T using the form at the bottom of this page to ensure you don’t miss out on the most important healthtech news every week!

FemTherapeutics raises $2.5 million CAD to address pelvic floor disorders with custom vaginal prosthetics (BETAKIT)

Pharma giant Bayer moves deeper into digital health with new business unit (FIERCE HEALTHCARE)

Pharma giant Bayer is launching a precision health unit as it ramps up its investment in consumer-facing digital health tools.

The new Bayer Precision Health group will work to identify digital and digital-supported consumer healthcare opportunities, executives said.

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Learn more about opportunities to grow in Vaughan.

SAAS NORTH producer reveals new Vancouver-based INNOVATEwest tech conference (BETAKIT)

A newly-launched website shows that Cube Business Media, the company behind Canadian tech events like SAAS NORTH, TechExit.io, and Tech Talent North, plans to launch a new tech event in Vancouver called INNOVATEwest in 2024.

Assault Allegations Plague a $1.4 Billion Home Eldercare Startup (BLOOMBERG)

Papa Inc. offers a kind of TaskRabbit for seniors. It’s covered by Medicare Advantage and some company health plans. And it’s got some very disturbing incident reports.

Ex-Panache, ScaleUp partners team up to launch new early-stage VC fund CMD Capital (BETAKIT)

Long-time Canadian technology startup investors Matt Roberts and David Dufresne have teamed up to launch their own early-stage VC firm, CMD Capital.

CMD Capital aims to raise up to $75 million CAD for startups that use artificial intelligence to solve problems across the B2B and enterprise sectors.

Strive Health grabs $166M to provide end-to-end kidney care (TECHCRUNCH)

Strive Health, working to provide value-based care specifically to the 37 million adults living with chronic kidney disease, has now secured $166 million in Series C funding.

The company takes in patient data and puts it through machine learning programs to identify what stage of kidney disease a patient might be and then be able to predict the probability of the disease’s progression.

A survey of the challenges women founders face when fundraising (and how to overcome them) (BETAKIT)

40 women founders from 25 different countries share their views for other women entrepreneurs fundraising.

Collision nears a one-year Toronto extension, efforts mount for a West Coast alternative (BETAKIT)

With Collision’s long-term future in Toronto still uncertain, efforts are mounting for a British Columbia alternative, as multiple Vancouver organizations have begun exploring the idea of luring Collision to the city.

Carrum Health Secures $45M To Expand Cancer Care Offerings for Employers (MEDCITYNEWS)

Healthcare platform Carrum Health raised $45 million in Series B funding, which it will use to expand its cancer care offerings, the company announced Tuesday.

Carrum offers access to services for musculoskeletal conditions, cancer care, cardiovascular care and bariatric care.

Report: 2021 VC boom in Canada was short-lived as market resets to pre-pandemic levels (BETAKIT)

A recent report published by BDC Capital, the investment arm of the Business Development Bank of Canada, found that the number of VC deals in 2022 dropped by 12 percent year-over-year, while the total amount invested declined by 34 percent.

Hello Heart joins other digital health players taking on menopause as overlooked market gains attention (FIERCE HEALTHCARE)

Hello Heart, a startup that helps people manage their heart health at home using their smartphone, rolled out a new feature that provides menopausal women with the tools and information they need to take control of their heart health.

The global menopause market is expected to reach $24.4 billion by 2030, up from $15.4 billion in 2021, per a report from Grand View Research.

AbCellera receives $300 million in combined government funding for biotech campus (BETAKIT)

Vancouver-based AbCellera will receive $300 million through the Strategic Innovation Fund to upgrade existing facilities throughout Vancouver and to develop a “state-of-the-art” biotech campus featuring a preclinical antibody-development facility.

GPT enabled conversational AI provider Hyro garners $20M (MOBIHEALTHNEWS)

Hyro, maker of a GPT-enabled conversational AI provider for healthcare, announced it raised $20 million in Series B funding, bringing the company's total funding to $35 million.

The New York-based company offers a call center for providers that allows for automated conversations with their patients via conversational AI. The company also provides real-time analytics, with insights from patient interactions.

BenchSci closes $95-million CAD Series D to expand AI drug-discovery platform (BETAKIT)

Toronto-based BenchSci, which helps pharmaceutical firms accelerate research and development using artificial intelligence, has secured $95 million CAD in Series D funding.

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AlayaCare founder, Alberta Innovates and Strata Health Solutions executives honoured at e-Health Conference

Charles Mandel — Thu, 08 Jun 2023 17:02:39 +0000

Adrian Schauer, founder and CEO of AlayaCare, is one of three healthtech executives honoured with the award of Top Digital Health Executive for 2023. Schauer shared tha award with Timothy R. Murphy, the vice president of health with Alberta Innovates; and Kevin Jones, senior vice president, Canada, Strata Health Solutions.

Digital Health Canada gave out the awards at the e-Health 2023 Conference and Tradeshow held in Toronto May 28 – 30. E-Health is co-hosted by Canada Health Infoway, Canadian Institute for Health Information, and Digital Health Canada.

“This award validates our mission and commitment to transforming home-based care.”

Digital Health Canada annually offers awards in six categories: Digital Health Executive of the Year; Digital Health Leader of the Year; Clinical Innovator of the Year; Community Care Leader of the Year; Emerging Leader of the Year; and StartUp Innovator of the Year; along with the Steven Huesing Scholarship.

The Digital Health Executive award is peer reviewed and recognizes three individual executives whose outstanding contributions in 2022 have helped advance digital health or virtual health in Canada in both the public and private sectors.

Founded in 2014, AlayaCare provides an end-to-end platform for home and community healthcare providers. The startup’s artificial intelligence (AI)-powered software offers scheduling, reporting, clinical documentation, billing, a care worker mobile app, and dedicated portals for patients, family members, and care workers.

In recent months, however, AlayaCare has faced the same, tough market headwinds that have impacted Canadian startups, and in August 2022 laid off nearly 14 percent of its workforce, or some 80 employees.

Following its $225 million CAD Series D raise in 2021, Alayacare began an expansion into the United States with the acquisition of Pennsylvania-based Delta Health Technologies.

“This award validates and reinforces our mission and commitment to transforming home-based care, helping more Canadians receive care in the place they call home,” said Schauer. “We create better technology for better outcomes.”

Other winners for the evening included:

Digital Health Leader of the Year
Michael Tatto, executive director Digital Health Strategy and Enterprise Architecture, Provincial Health Services Authority
Dr. Manal Kleib, associate professor, University of Alberta
Dr. Fred Melindy, director, eDOCSNL

Clinical Innovator of the Year:
Dr. Mark Nazemi, senior manager, Clinical Solutions & Innovation, Thrive Health
Dr. Mohamed Alarakhia, managing director, eHealth Centre of Excellence
Dr. Abigail Ortiz, staff psychiatrist, Centre for Addiction and Mental Health (CAMH)

Care Leader of the Year:
Wendy Wilson, project manager – Digital Health, TransForm Shared Health Organization
David Helliwell, co-founder & executive chair, Thrive Health

Emerging Leader of the Year:
Nancy Nguyen, project manager, Outpatient Digital Experience Project, Providence Health Care
Dr. Tarun Katapally, Canada Research Chair in Digital Health for Equity, Western University
Mobeen Lalani, account executive, Locke Bio

Start-up Innovator of the Year:
Ahad Bandealy, chief digital officer, founder of Get A-Head Powered by Keel Mind
Jason Daly, CTO, GoAutomate Inc
Oren Sebag, CEO, Avvy Health

The Steven Huesing Scholarship:
Nadia Green, University of Alberta
Ahmad Haroon Syed, University of Regina

The Steven Huesing Scholarship honours the contributions the founding president of Digital Health Canada made to the industry. The scholarship was established in 1999 to reflect the spirit, dedication and innovation the founding president brought to the field of health informatics.

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Vive Crop Protection adds $11.2 million CAD extension to Series C to improve efficiency of agricultural chemicals

Charlize Alcaraz — Thu, 08 Jun 2023 15:52:24 +0000

Vive Crop Protection has raised $11.2 million CAD ($8.4 million USD) in an extension to its Series C financing round.

The Mississauga-based AgTech startup secured nearly $34 million CAD ($26 million USD) in the first close of its Series C funding round in August 2022. This extension brings the round’s total to $45.9 million CAD ($34.4 million USD).

Proceeds will be used for Vive’s laboratory expansion and headcount growth.

Current investors in Vive who contributed to the extension include the Business Development Bank of Canada (BDC), Export Development Canada (EDC), Urbana Corporation, Co-operators, Emmertech, Lex Capital, and iSelect. Vive did not disclose who led the round or when it closed.

The $11.2 million that Vive secured in this extension falls short of its previous plans to add another $18 million CAD to its Series C financing, however. Vive CEO Darren Anderson told BetaKit in August that fundraising in this fashion was a “prudent decision” given present macroeconomic conditions.

Speaking to this round, Anderson said the continued support of Vive’s investors in a “challenging equity market” is a demonstration of their belief in the startup’s potential as it plans for expansion throughout North America.

Vive said it will use the Series C financing to invest in its research and development efforts, which includes a laboratory expansion and headcount growth. The startup said it also plans to expand into “underserved markets in North America” as well as scale its marketing capabilities and brand awareness strategies.

Founded in 2006 and spun out of technology developed at the University of Toronto, Vive develops crop protection solutions to make agricultural chemicals like pesticides and fungicides more efficient.

Vive’s Allosperse delivery system uses patented polymer “shuttles” to carry an active ingredient where it needs to go. This technology creates mixing products for agricultural chemicals with improved penetration and targeting, according to the startup.

When it raised the first close of its Series C last year, Vive’s focus up to that point had been on the United States, which Anderson said has “shorter regulatory timelines than Canada.”

Vive has since expanded to Canada, with its first Canadian product registration in March. It now offers its AZteroid fungicide in the country, which helps Canadian potato growers combat soilborne diseases like Black scurf, and Rhizoctonia.

Featured image courtesy Unsplash.

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Cohere announces $270-million USD Series C from Inovia, Nvidia, Oracle, Salesforce

Josh Scott — Thu, 08 Jun 2023 14:07:29 +0000

Toronto-based artificial intelligence (AI) startup Cohere, which competes against ChatGPT creator OpenAI, has closed $270 million USD in Series C financing to fuel enterprise adoption of generative AI.

The all-equity, all-primary round was led by Inovia Capital, with support from a group of other venture capital and strategic investors from around the world that includes some of the world’s largest tech firms in Nvidia and Oracle, as well as Salesforce Ventures, DTCP, Mirae Asset, Schroders Capital, SentinelOne, Thomvest Ventures, and existing investor Index Ventures.

As the broader tech market has cooled, the AI sector—and generative AI in particular—has been heating up.

The company’s Series C round comes about 16 months after Cohere secured $125 million in Series B funding. Earlier this year, Reuters reported that Cohere was in talks to raise hundreds of millions of dollars in a round that could value the startup at over $6 billion. Per Bloomberg and VentureBeat, the firm’s latest financing gives Cohere a more modest valuation of more than $2 billion—as previously reported by The Globe and Mail.

Cohere aims to help enterprises adopt generative AI. As the broader tech market has cooled, interest in AI—and the generative AI space in particular—has been heating up. ChatGPT and image generator DALL-E have both gone viral, demonstrating the promise and peril of these new technologies, and investor interest in the sector has grown.

In a statement, Nvidia founder and CEO Jensen Huang proclaimed, “We are at the beginning of a new era driven by accelerated computing and generative AI.” The Nvidia leader claimed that Cohere has already made “foundational contributions to generative AI,” adding that the company’s service will help businesses globally harness the tech’s capabilities.

“As the early excitement about generative AI shifts toward ways to accelerate businesses, companies are looking to Cohere to position them for success in a new era of technology,” Cohere co-founder and CEO Aidan Gomez said in a statement. “The next phase of AI products and services will revolutionize business, and we are ready to lead the way.”

Founded in 2019 by ex-Google researchers, Cohere provides natural language processing (NLP) software powered by large language models (LLMs) to developers and businesses. Among other use-cases, Cohere’s LLMs can be added to products in order to power interactive chat features, generate text for product descriptions, blog posts, and articles, and analyze the meaning of text for search, content moderation, and intent recognition.

Cohere, which first emerged from stealth in early 2021, enables enterprises to deploy NLP capabilities across their businesses without requiring supercomputing infrastructure or AI expertise, which the startup has claimed “radically reduces the cost for companies of all sizes to access leading AI models.”

“There’s no doubt AI is already transforming product experiences,” a Cohere spokesperson told BetaKit. “At this point, every enterprise has to look for AI partners or risk falling behind. Cohere’s aim is to be that partner of choice for those enterprises; that’s why we’re building the leading AI platform for business.”

Within the generative AI space, Cohere competes against players like Microsoft-backed OpenAI and Google-funded Anthropic, which each closed major funding rounds this year.

With this funding, Cohere has now raised $445 million to date from a group of backers that also includes Tiger Global, Radical Ventures, Section 32, Geoffrey Hinton, Fei-Fei Li, Pieter Abbeel, and Waabi’s Raquel Urtasun.

LLMs are expensive to train, and demand for computing power has grown alongside their popularity. Cohere’s latest capital will help the company meet its computing needs, grow its team, engage more enterprises, and advance its AI models.

Feature image courtesy Cohere.

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More than $110,000 in investments awarded to startups at Inventures 2023

Charlize Alcaraz — Thu, 08 Jun 2023 10:00:50 +0000

Over $110,000 in investments were awarded to startups at Inventures’ pitch competitions this year.

Taking place in Calgary, Inventures ran from May 31 to June 2 where it saw over 3,000 people in attendance. This 2023 installation held four different pitch events open to startups from Canada and beyond.

Provincially-funded Alberta Innovates launched Inventures in 2018 to bring together innovators, angel investors, venture capitalists, and industry leaders.

Most of the startups that received funding at Inventures 2023 are based in Alberta, with the exception of those that participated in the international pitch contest.

International competition

Thirty companies participated in the international competition, which awarded $10,000 to each winner of the six categories in the contest, totalling $60,000.

Inventures introduced the global event in 2019 to attract innovators from across the world to Alberta.

Half of this year’s recipients come from Canada, with Ottawa-based Delphi, Vancouver company GlüxKind, and Edmonton-headquartered Kello Inclusive. Other countries with representatives were the United States and Singapore.

The 2023 categories for the international pitch event and its winners are:

The Metaverse: Delphi Technology Group
Computing Infinity: GlüxKind Technologies
Future of Work: Kello Inclusive
Agriculture/Food: Teora PTE
Cleantech: Urban Machine
Health Innovation: Vistim Labs

Ascent

The Ascent pitch competition provided $50,000 in cash, meant to help startups and innovators from the University of Calgary (UCalgary) commercialize their product or service.

TurnCO2, which offers CO2 capture technologies for the food and beverage industry, won the top prize worth $30,000. AI fashion advisor LEWK and Climate Change Materials, which is developing technology that embeds biomass wastes into construction materials, each received $10,000.

Winners will also go through the four-month Ascent program, where they will get access to training and coaching from UCalgary’s Hunter Hub for Entrepreneurial Thinking, matching them with mentors from the community.

HerStory

The51, which invests in women-led ventures, named the winners of this year’s HerStory pitch competition.

HerStory is open to women and gender-diver entrepreneurs where they can tell a panel of investors about who they are and how they came to their business idea.

From the 30 finalists selected in the previous round, five Alberta-based companies were selected to receive investments from HerStory’s “Capital Champions.”

The amount invested for each recipient was not disclosed. Winners may receive an investment of up to $51,000, subject to due diligence.

HerStory’s 2023 awarded businesses and its founders are:

UpRow – Kelsie Williams
Fuse Financial – Aamna Zia
Nyah Health – Hoda Soboh
Village Wellth – Liz MacRae
Animal Healthlink – Leilani Mustillo

For students

A student pitch competition also took place, naming three Alberta-based startups as finalists to participate in a student entrepreneur showcase.

The finalists were Quack, which allows salespeople to call multiple prospects at once; Wire Financial, a banking app that targets South Asians; and drone mapping software provider Threshold UAV.

Featured image courtesy Inventures.

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R|T: The Retail Times – Shopify’s birthday gift: a new class-action lawsuit

Alex Riehl — Thu, 08 Jun 2023 10:00:16 +0000

The Retail Times is a weekly newsletter covering retail tech news from Canada and around the globe.

Subscribe to R|T using the form at the bottom of this page to ensure you don’t miss out on the most important retail tech news every week!

Shopify facing $130-million lawsuit for alleged attempts to slash post-layoffs severance pay (BETAKIT)

Shopify is facing a $130-million class action lawsuit for allegedly breaching severance pay contracts by tens of thousands of dollars with recently laid-off employees.

Amazon workers walk out amid layoffs, citing concerns for climate (THE WASHINGTON POST)

Hundreds of Amazon staff members walked off the job on Wednesday afternoon demanding a flexible remote work policy and renewed commitments to reducing carbon emissions to zero.

Employees say recent layoffs and the mandate — which increases emissions as workers commute — have left them questioning whether Amazon executives are leading the company in the right direction.

Shopify launches Shop Cash rewards program in the US (BETAKIT)

Shop Cash’s launch is part of Shopify’s first Shop Day event held on June 2, an initiative similar to other dedicated deal days from e-commerce brands, including Amazon’s Prime Day.

Temu Is Losing Millions of Dollars to Send You Cheap Socks (WIRED)

The reason that prices on Temu seem impossibly low is that they are. An analysis of the company’s supply chain costs by WIRED—confirmed by a company insider—shows that Temu is losing an average of $30 per order as it throws money at trying to break into the American market.

So far, it's working. In just seven months, Temu's app has been downloaded over 50 million times.

Collision nears a one-year Toronto extension, efforts mount for a West Coast alternative (BETAKIT)

MarketForce tightens its belt as tough times hit B2B commerce (TECHCRUNCH)

MarketForce, a Kenyan B2B e-commerce platform to help independent corner shops source goods, once had an ambitious plan to grow the number of users on its platform to a million by the end of 2022.

Now, the startup has had to slow down and retool after some VCs backed out a few months after the company announced its $40 million series A.

Saskatoon startups SolusGuard, BetterCart win a combined $75,000 at Uniting the Prairies 2023 (BETAKIT)

Two Saskatoon startups walked out of the Uniting the Prairies 2023 pitch competition with a combined $75,000 in investment funding.

Workplace wearables company SolusGuard won $50,000 and B2B price analytics platform BetterCart clinched $25,000.

SellerX acquires US e-commerce roll-up rival Elevate Brands in an all-share deal, raises $64M+ (TECHCRUNCH)

SellerX, a Berlin-based roll-up play that has raised nearly $900 million in equity and debt and is valued at more than $1 billion, announced that it would acquire Elevate Brands, based out of Austin and NYC.

Elevate, like SellerX, is in the business of buying up smaller retailers that sell over marketplaces like Amazon, but it’s a fair bit smaller, with some $250 million raised to date.

A survey of the challenges women founders face when fundraising (and how to overcome them) (BETAKIT)

40 women founders from 25 different countries share their views for other women entrepreneurs fundraising.

SAAS NORTH producer reveals new Vancouver-based INNOVATEwest tech conference (BETAKIT)

Hopper’s Rise in Travel 2023 (SKIFT)

Skift releases what its CEO and Founder Rafat Ali calls the "most comprehensive" research report done on Hopper, the upstart mobile travel booking company.

"(Hopper) touched close to half billion in revenues in 2022 and likely to well cross it this year. Still not profitable," Ali said.

Ex-Panache, ScaleUp partners team up to launch new early-stage VC fund CMD Capital (BETAKIT)

Long-time Canadian technology startup investors Matt Roberts and David Dufresne have teamed up to launch their own early-stage VC firm, CMD Capital.

CMD Capital aims to raise up to $75 million CAD for startups that use artificial intelligence to solve problems across the B2B and enterprise sectors.

Serve Robotics to deploy up to 2,000 sidewalk delivery bots on Uber Eats (TECHCRUNCH)

Serve Robotics, the Uber spinout that builds autonomous sidewalk delivery robots, is expanding its partnership with Uber Eats. The startup will now deploy up to 2,000 of its cute little bots via Uber’s platform in multiple markets across the US.

Report: 2021 VC boom in Canada was short-lived as market resets to pre-pandemic levels (BETAKIT)

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Soar reveals its Indigenous entrepreneur-focused accelerator’s first cohort

Charlize Alcaraz — Wed, 07 Jun 2023 18:11:07 +0000

Soar, an Ottawa-based initiative for Indigenous entrepreneurship, has revealed the five startups taking part in the first cohort of its accelerator.

Indigenous-owned businesses Cheekbone Beauty, Indi City, Mini Tipi, Sequoia, and Wabanaki Maple have all been selected for the inaugural Soar Accelerator this year, which will be delivered in partnership with Square, BDC, and Futurpreneur.

There are 50,000 Indigenous-owned businesses in Canada that annually contribute $31 billion to the country’s GDP.

All of this cohort’s members offer consumer goods inspired by Indigenous cultures through their websites. Mini Tipi sells a variety of textile products, like shawls, ponchos, and bags. Indi City designs jewelry, Wabanaki makes maple syrup, while Cheekbone and Sequoia are both beauty brands.

According to the National Aboriginal Capital Corporations Association (NACCA), there are more than 50,000 Indigenous-owned businesses in Canada that contribute $31 billion to the country’s gross domestic product per year.

However, barriers exist for Indigenous business owners. NACCA reported that Indigenous entrepreneurs have less access to capital and lack the networks required to grow their business. Intersectionality, such as being Indigenous and part of another underserved group such as women or the LGBTQ2S+ community, poses additional obstacles.

Soar created this accelerator to help mitigate these barriers. The program will run from June 14 to 16 in Toronto where participants will gain access to “executive-level training,” mentorship, meetings with major buyers, and networking opportunities with other Indigenous business owners.

Ultimately, the accelerator aims to help the five companies, which are all already making over $1 million in revenue, multiply their revenues five-fold over the next 12 months.

Wabanaki founder and CEO Jolene Johnson, for example, said the accelerator program comes at the right time given that Wabanaki is targeting global expansion.

Soar is just one of a number of other programs, funds, and initiatives established in recent years meant to scale Indigenous entrepreneurship in Canada.

Others include Raven Indigenous Capital Partners, an Indigenous-led venture capital firm, raised $100 million CAD for its second fund this year, meant to invest exclusively in Indigenous enterprises.

Meanwhile, NACCA’s Indigenous Growth Fund secured a $3-million investment from Jack Dorsey’s Block Inc. last year. The IGF provides loans to Indigenous entrepreneurs who require capital to start or expand their businesses through a growing number of Aboriginal Financial Institutions (AFIs) across Canada. AFIs are responsible for distributing the IGF loans to Indigenous enterprises.

The IGF raised $150 million in its first close in 2021. It made its first investment in March 2022, providing $10 million to the Nuu-chah-nulth Economic Development Corporation.

Featured image courtesy Mini Tipi.

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Shopify plans to “aggressively pursue” ID of funders in cases against “patent trolls”

Josh Scott — Wed, 07 Jun 2023 16:54:53 +0000

After battling patent trolls for years, Shopify has announced plans to fight back by seeking to uncover the identity of people and organizations funding patent trolls suing Shopify.

The Ottawa e-commerce giant initiated these efforts with a June 7 motion in the United States (US) District Court for the Western District of Texas. The motion calls on the Court to compel the disclosure of third-party interests in a patent troll case against Shopify, filed by Lower48 IP LLC. Shopify shared the news in a LinkedIn post from the firm’s general counsel, Jess Hertz.

“Litigants and judges need—and deserve—to know who they’re litigating against.”
– Jess Hertz, Shopify

Patent trolls are often shell companies that purchase portfolios of broad, unused patents. They then use these patents to sue others for patent infringement, demanding damages or license payments. In the US, hundreds of patent infringement lawsuits are filed against businesses every year, many by patent trolls, and most are settled with a quick payout.

“Patent trolls stifle that innovation, burying hard-working entrepreneurs in piles of legal paperwork,” wrote Hertz. “They quietly orchestrate hundreds of patent litigation cases every year, with no accountability. In many cases, we don’t know who’s funding these lawsuits. We are no longer willing to accept this as the status quo. Litigants and judges need—and deserve—to know who they’re litigating against.”

Hertz emphasized that the stakes of patent troll lawsuits can be high for many tech firms, noting that they often target small businesses and startups that can’t afford to fight or lose a legal battle.

“In many cases, we don’t know who’s funding these lawsuits,” wrote Hertz. “We are no longer willing to accept this as the status quo. Litigants and judges need—and deserve—to know who they’re litigating against.”

Hertz noted that while the identity of patent trolls themsleves is usually known, their financial backers are typically undisclosed.

“We often know who is behind patent trolls—US Innovation Fund, IP Edge, and Acacia Research,” she wrote. “But these groups’ funders, interests, and decision-makers hide cowardly in the shadows.”

Shopify has battled patent trolls for some time now. The company’s foes have included Express Mobile. In late 2022, a US court found Shopify infringed upon patents held by Express Mobile, ordering the firm to pay $40 million USD in damages. At the time, Shopify announced its intention to contest this verdict. The status of these efforts remains unclear.

While Shopify has traditionally not bothered patenting its intellectual property, in recent years, the company’s strategy on this front has appeared to shift as the company has sought to protect itself against competition and patent infringement lawsuits.

Speaking to Shopify’s efforts to uncover the identity of patent troll financiers, Hertz highlighted that there has already been some judicial precedent and force behind this issue. She pointed to a 2022 order from US District Judge Colm Connolly regarding a case with Nimitz Technologies LLC, which called out the “lack of transparency” in patent litigation cases.

“By removing the cloak of secrecy in Delaware courts, [Connolly] is encouraging other jurisdictions to take a hard look at the lack of transparency in patent litigation cases across the judicial system,” wrote Hertz.

As far as Shopify’s latest efforts to defend itself against patent trolls, Hertz wrote that “this is just the beginning,” adding that the company intends to continue to support legislation to expose patent trolls and organizations that shed light on this issue.

Feature image courtesy Burst. Photo by Avelino Calvar Martinez.

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York University partners with OneEleven to launch joint venture studio for new tech MBA degree

Charlize Alcaraz — Wed, 07 Jun 2023 12:00:56 +0000

York University’s Schulich School of Business is partnering with Toronto-based tech hub OneEleven to establish a joint venture studio.

The venture studio is part of Schulich’s new master of business administration (MBA) program focused on tech leadership, which is set to launch in the 2023 fall semester. The studio will open its doors by the third term of the program, in summer of 2024.

“Employers today want graduates who can see problems and solutions from a different perspective.”

Co-led by Schulich adjunct professor Chris Carder, the venture studio will match students with member companies from both OneEleven and Schulich’s startup communities, who will complete pro bono product and fundraising analysis for select startups.

“Employers today, especially in the tech sector, want graduates who can see problems and solutions from a different perspective, seeing the future and bringing it to life,” said Carder.

Carder added that the studio is now actively recruiting for additional course instructors, guest lecturers, and mentors.

The venture studio will also feature guest lectures by founders and venture capitalists, project mentorship, joint events with OneEleven community members, as well as networking opportunities.

OneEleven provides office space, community, and programming for tech startups in downtown Toronto. Since it reopened its doors after shutting down in the COVID-19 pandemic, OneEleven has adopted a new focus on upskilling, launching its talent upskilling program in 2021.

York University’s tech MBA students will take their classes and attend project meetings at OneEleven. OneEleven’s leadership team and alumni founders will also have opportunities to guest lecture and mentor in the venture studio.

This partnership with Schulich, according to OneEleven’s interim managing director Angelo Casanas, is the tech hub’s continued contribution to talent and upskilling in the tech ecosystem. Casanas took over the leadership duties of OneEleven’s former head Matthew Lombardi, who left in May and has joined Telus’ Pollinator Fund as director of platform services.

Schulich introduced its Tech MBA program last month with the aim to develop the “next generation of leaders” in business as it undergoes major technological transformations, including the rapid application of artificial intelligence (AI).

York University previously launched a part-time certificate program for machine learning in 2018, through its school for continuing studies.

According to Schulich, the 16-month tech MBA will offer leadership development with a focus on strategic thinking, systems design, digital transformation, value creation, as well as technology management and integration

The program will include a guaranteed workplace internship that lasts one full term, exposure to industry leaders as part of a small class, and career support through its series of two professional development courses that focus on “employability skills and career readiness.”

Schulich appointed Murat Kristal as the program’s inaugural director. Kristal brings over ten years of experience in technology teaching and research, currently an associate professor of operations management as well as a special advisor in AI and analytics for the university.

For Carder’s part, he previously co-founded email service provider ThinData in 1995. He led the company till 2010, growing the firm from a two-person operation to a staff of over 120 people across Toronto and Montreal. Commercial printer Transcontinental Inc. acquired ThinData in 2008.

Carder has also supported several tech companies as an advisor, including Portl Media, Blade Filters, ALT TEX, and eQuo.

Featured image courtesy OneEleven.

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A|I: The AI Times – Public letter escalation: Bengio & Hinton sign another warning

Alex Riehl — Wed, 07 Jun 2023 10:00:58 +0000

The AI Times is a weekly newsletter covering the biggest AI, machine learning, big data, and automation news from around the globe.

If you want to read A|I before anyone else, make sure to subscribe using the form at the bottom of this page.

Geoffrey Hinton, Yoshua Bengio warn “risk of extinction from AI” in public letter (BETAKIT)

Yoshua Bengio, Geoffrey Hinton, and Sam Altman are among the signatories of a new, one sentence, public letter that reads: “Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.”

Canadian AI computing startup Tenstorrent and LG partner to build chips (REUTERS)

Canadian AI computer design startup Tenstorrent said on Tuesday it was partnering with South Korea's consumer electronics firm LG Electronics Inc to build chips that power smart TVs, automotive products and data centers.

LG will initially use Tenstorrent's AI chip blueprint to design its own chips, but the partnership is more strategic, said David Bennett, Tenstorrent's chief customer officer.

Ex-Panache, ScaleUp partners team up to launch new early-stage VC fund CMD Capital (BETAKIT)

Long-time Canadian technology startup investors Matt Roberts and David Dufresne have teamed up to launch their own early-stage VC firm, CMD Capital.

CMD Capital aims to raise up to $75 million CAD for startups that use artificial intelligence to solve problems across the B2B and enterprise sectors.

POWERED BY: TORONTO MACHINE LEARNING SUMMITBreaking Boundaries with Generative AI

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Engage in captivating roundtable discussions, where diverse perspectives collide, leading to groundbreaking insights. Dive into hands-on workshops specifically designed to empower you with the practical skills and knowledge needed to leverage Generative AI and LLM's in your projects.

Explore Canada's finest use-case presentations, showcasing the remarkable potential of these technologies alongside technical hands-on workshops. Unleash your creativity, ignite your passion, and be part of shaping the future of ML/AI in Canada at TMLS2023.

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The AI Founder Taking Credit For Stable Diffusion’s Success Has A History Of Exaggeration (FORBES)

Stability AI became a $1 billion company with the help of a viral AI text-to-image generator and — per interviews with more than 30 people — some misleading claims from founder Emad Mostaque.

Collision nears a one-year Toronto extension, efforts mount for a West Coast alternative (BETAKIT)

Google Invests in AI Startup Runway to Wrest Cloud Business From AWS (THE INFORMATION)

Google is investing in Runway, a New York–based startup that lets customers generate video from text descriptions using artificial intelligence it pioneered, at a valuation of around $1.5 billion including the new capital, according to two people familiar with the matter.

SAAS NORTH producer reveals new Vancouver-based INNOVATEwest tech conference (BETAKIT)

A survey of the challenges women founders face when fundraising (and how to overcome them) (BETAKIT)

40 women founders from 25 different countries share their views for other women entrepreneurs fundraising.

OpenAI is pursuing a new way to fight A.I. ‘hallucinations’ (CNBC)

OpenAI is looking to fix AI “hallucinations,” when an AI fabricates a statement and presents it as fact, with a newer method for training artificial intelligence models.

OpenAI’s potential new strategy for fighting the fabrications: Train AI models to reward themselves for each individual, correct step of reasoning when they’re arriving at an answer, instead of just rewarding a correct final conclusion.

Report: 2021 VC boom in Canada was short-lived as market resets to pre-pandemic levels (BETAKIT)

AI is hot right now, but it's also being used to cool down buildings (BNN BLOOMBERG)

Companies like BrainBox AI are now using AI to make HVAC systems more predictive and intelligent.

The AI-driven systems use numerous factors including outside weather, forecasts, the type and cost of energy being used at different times, emissions from that energy, and occupancy to optimize a building’s energy usage and to lower emissions.

AbCellera receives $300 million in combined government funding for biotech campus (BETAKIT)

AI Deepfakes of True-Crime Victims Are a Waking Nightmare (ROLLING STONE)

“Grandma locked me in an oven at 230 degrees when I was just 21 months old,” the cherubic baby with giant blue eyes and a floral headband says in the TikTok video.

The baby, who speaks in an adorably childish voice atop the plaintive melody of Dylan Mathew‘s “Love Is Gone,” identifies herself as Rody Marie Floyd, a little girl who lived with her mother and grandmother in Mississippi. She recounts that one day, she was hungry and wouldn’t stop crying, prompting her grandmother to put her in the oven, leading to her death.

“Please follow me so more people know my true story,” the baby says at the end of the video.

BenchSci closes $95-million CAD Series D to expand AI drug-discovery platform (BETAKIT)

Toronto-based BenchSci, which helps pharmaceutical firms accelerate research and development using artificial intelligence, has secured $95 million CAD in Series D funding.

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Saskatoon startups Rivercity, 7shifts team up to enhance food temperature monitoring for restaurants

Charlize Alcaraz — Tue, 06 Jun 2023 19:09:36 +0000

Two Saskatoon-based startups are teaming up to help restaurants improve their food temperature monitoring processes.

Rivercity Innovations (RCI) has launched the integration of its cold chain monitoring sensors and software with 7shifts, which provides a restaurant team management platform.

In this partnership, RCI will deliver its temperature monitoring services to 7shifts’ more than 40,000 clients.

Though RCI offers solutions for a number of industries, it said it’s primarily focused on cold chain logistics.

Co-founded by CEO Jeff Shirley and CTO Lance Pitka in 2017, RCI started out with developing a platform to track beehives being stolen, naming the product “BeeSecure.” In 2018, Shirley and Pitka redesigned BeeSecure to create a solution for the Government of Saskatchewan’s Innovation Challenge, originally meant to reduce crime.

RCI has expanded its product suite since then, building sensors and apps for a variety of purposes including temperature, GPS, moisture, humidity, and other data. It claims to offer “the world’s smallest LoRa [long range] GPS tracker” for valuable assets like company vehicles, equipment, and others.

In 2021, Edmonton-based Environmental Material Sciences awarded RCI with a multi-year engineering and development contract to develop LoRa sensors specific to its soil remediation technologies.

RCI also raised $700,000 in seed funding in 2021, which was led by Conexus Venture Capital with participation from Golden Opportunities Fund and Tribune Capital. It also receives support from Startup TNT.

Though RCI offers solutions for a number of industries, it said it’s primarily focused on cold chain logistics. The startup deploys its temperature monitoring solutions to grocers, restaurants, and pharmacies across North America and Europe.

According to RCI, its integration with 7shifts could help restaurants lessen food loss, automate the digitization of food safety compliance data, improve food quality due to temperature control monitoring, as well as reduce staff time spent collecting data on food temperatures in storage.

Conexus managing director Kyle Scott said this partnership between the two startups demonstrates the maturing innovation ecosystem in Saskatchewan, adding that they will become “increasingly more common as the ecosystem continues to mature.”

“There are no longer just ‘local SK businesses,’ but great international companies, founded in Saskatchewan,” Scott said.

Shirley echoed Scott, saying: “The fact that we are both based in Saskatoon, Saskatchewan speaks to the quality of technology and innovation coming from our prairie province right here in Canada.”

7shifts’ restaurant team management platform offers capabilities for team communication, task management, and tip pooling. It previously secured $101.6 million CAD in Series C financing in 2022, which was led by SoftBank Vision.

7shifts’ partner ecosystem allows companies to join as integration partners or build restaurant technology tools using its API in the areas of point-of-sale systems, analytics, hiring, training, back office, and more.

Among some of the users of 7shifts’ platform include Union Square Hospitality, Bareburger, Boka Restaurant Group, Juice It Up!, and Hart House.

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BC regulator suspends ex-Blok Technologies CEO, CFO from investment market for misrepresenting 2018 share sale

Josh Scott — Tue, 06 Jun 2023 17:23:04 +0000

The former CEO and CFO of Vancouver-based blockchain investment firm Blok Technologies have been suspended from participating in the investment market, according to the British Columbia Securities Commission (BCSC).

Per the BCSC, ex-Blok CEO Robert Earle Dawson and ex-Blok CFO David Malcolm Alexander have separately agreed to suspensions over how a past Blok share sale was communicated to the public.

Per the BCSC, Blok failed to disclose that it would only retain less than 18 percent of the $5.4 million amount it announced because it “had already spent or owed $4.5 million on consulting fees.”

A June 2018 press release from Blok, which traded on the Canadian Securities Exchange at the time, announced that the company had secured an approximately $5.4 million private placement. In that release, Blok said the net proceeds would be used for advancing Blok’s blockchain investment projects.

But according to the BCSC, what Blok failed to disclose was that it would only retain about $950,000—less than 18 percent of that amount. Per the regulator, this was because Blok “had already spent or owed $4.5 million on consulting fees.”

The BCSC has determined that Dawson and Alexander both “authorized, permitted or acquiesced in the issuance” of that June 2018 release. “Alexander knew, and Dawson knew or ought to have known, that [Blok] had already spent or owed the consulting fees at the time of the news release,” stated the BCSC. “As a result, both of them committed the same misrepresentation as the company.”

These settlements require Alexander and Dawson to resign any director or officer positions they hold at a public market issuer or registrant and temporarily bar both from acting in such a role or advising or consulting in connection with the securities or derivatives market. Alexander has been prohibited from doing the above for three years, while Dawson has been barred for 14 years.

Alexander has also been required to pay $25,000 to the BCSC. Meanwhile, the BCSC noted that Dawson “isn’t able to pay a financial sanction that would normally be part of a settlement.”

Blok has previously described itself as “a public company that invests in and develops companies in the blockchain and emerging technology sectors.” The firm has claimed to provide capital, tech, and management expertise to other early-stage companies in the sector, including Sierra Blockchain.

According to company announcements, Dawson resigned from Blok in January 2019, while Alexander resigned in December 2018. No reasons were given for their departures at the time. Blok was delisted in October 2020 and is now in the process of being dissolved.

Feature image courtesy Blok Technologies.

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GSoft secures $125-million CDPQ investment to pursue growth through acquisitions

Charlize Alcaraz — Tue, 06 Jun 2023 16:40:24 +0000

GSoft made its first acquisition in February with Quebec City company Didacte, which offers a web-based learning management system. That deal follows a significant period of growth for GSoft, hitting an annual recurring revenue of $100 million in 2021 that gave it the “centaur” designation.

“It’s the right time to take GSoft to the next level.”
– Simon De Baene, GSoft CEO

The financing makes CDPQ the first external investor in GSoft. CDPQ is a pension fund that invests in companies and assets in a number of categories such as equity markets, private equity, real estate, infrastructure, and fixed income.

CDPQ is also the largest shareholder in other Montreal-based tech companies including CGI and Lightspeed Commerce. As of December 2022, the firm said its net assets totalled $402 billion CAD.

Bootstrapped since its inception 17 years ago, GSoft said this contribution from CDPQ will be used to execute the company’s growth strategy through acquisitions, broadening its product suite, as well as expanding the scope of its share in existing and new markets.

“It’s the right time to take GSoft to the next level and continue to build and grow our company so that it can thrive for decades to come,” said Simon De Baene, GSoft’s co-founder and CEO. “With the support of CDPQ, we have the financial means to seize more of the opportunities we see in the market.”

When it was founded in 2006, GSoft initially operated as a software development services company, then later started building its own solutions focused on employee experience. It closed its services business in 2017 to focus on its proprietary products.

GSoft has built a suite of software offerings since then. Its products include capabilities for Microsoft 365 management, employee onboarding, skills development, as well as learning management from Didacte, among others.

Featured image courtesy GSoft.

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Rhino Ventures leads Twig Fertility’s $8 million Series A to improve fertility experience with tech

Charlize Alcaraz — Tue, 06 Jun 2023 11:30:42 +0000

A new generation of families is driving demand for modern family-planning solutions, though their needs are not being met.

The Canadian Fertility and Andrology Society estimates that on average, one in six Canadians experience infertility. However, advocates have said there are still barriers to getting timely and affordable care. “We are under-servicing a huge population of Canadians who actually need this care,” Carolynn Dubé, executive director with Fertility Matters Canada, told Global News.

Toronto-based fertility clinic Twig Fertility aims to fill that gap with tech. The company has raised $8 million CAD in a Series A funding round led by Rhino Ventures, with participation from its founders and existing shareholders, to support its growth plans, including the development of its proprietary healthtech platform.

“The medicine was there, but the service, technology, and emotional support were not.”

A spokesperson for Twig told BetaKit that the $8 million was raised across two tranches, in February and June. The transaction was all primary and equity capital. The company declined to share the existing investors that participated in the round and its total funding to date. It previously secured $250,000 in seed funding from Well Health’s investment arm.

Twig describes itself as a “modern and tech-enabled clinic.” According to Twig, its platform will use personal health and demographic data to optimize each patient’s treatment plan and work toward their family-building goals. The company is currently preparing for its release.

Twig was founded by Tanner Kohara, who said he and his wife felt like “faceless numbers at sterile clinics” as they began family planning.

“The medicine was there, but the service, technology, and emotional support were not,” Kohara said. “There was no transparency in pricing or cost.”

With the aim to improve the “convoluted fertility experience,” Kohara tapped Zach Shapiro and Dr. Rhonda Zwingerman to join as co-founders, in the roles of CEO and medical director, respectively.

The trio set out to address the time and cost required for family-building, opening its fertility clinic and in vitro fertilization (IVF) laboratory in midtown Toronto in 2022.

Twig’s services include fertility consults, egg freezing, family building for LGBT2SQ+, early pregnancy care, as well as IVF and fertility treatments, among others. It also has an in-house pharmacy, reproductive counsellor, and a range of wellness partners from acupuncture to nutrition.

In addition to developing its platform, Twig plans to use the funding to recruit and retain additional fertility specialists and open additional clinic locations across Canada. The company said further details surrounding its expansion plans will be released at a later date.

Twig represents Rhino’s first investment in a fertility business. According to Rhino partner Jay Rhind, private equity firms have been targeting fertility clinics for the last decade, largely because of what he describes as “clinic level profitability and demand tailwinds.”

Twig’s business model as a clinic is often not associated with venture capital. According to Rhind, Rhino makes a habit of investing in businesses that many VCs don’t believe are “venture-backable,” arguing that the white space between venture and private equity comes with attractive risk and reward opportunities.

The opportunity that Rhino sees in Twig is improving the care model for patients, addressing the need for enhanced patient outcome, experience, and accessibility.

“From an investment perspective we believe building the largest ‘de novo’ built clinic network in Canada has a very strong return potential,” Rhind said.

Featured image courtesy Twig Fertility.

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Oamo emerges from stealth with White Star Capital backing to build decentralized data brokerage

Josh Scott — Tue, 06 Jun 2023 10:00:18 +0000

Montréal-based Oamo has emerged from stealth with plans to become a decentralized data broker.

The Web3 startup has secured $1.7 million CAD ($1.25 million USD) in pre-seed financing solely from White Star Capital to build out its team and minimum viable product.

Taking aim at the existing data brokerage industry, Oamo aims to make it possible for individuals to monetize their data and build direct relationships with companies while remaining anonymous. Founded in November 2022 by CEO Yannick Folla and CTO Ahmed Hadjeres, Oamo sees room to replace traditional data brokers, which often access, aggregate, and sell user data without consent or knowledge.

“We believe the industry is ready for a change, shifting back control to individuals when it comes to their personal property—their data.”

“The data brokerage industry has been built on the principle that our data should be acquired and monetized against our will and without our knowledge so that any company can target us with unwelcomed ads,” Folla told BetaKit. “We believe the industry is ready for a change, shifting back control to individuals when it comes to their personal property—their data.”

Oamo’s pre-seed round, which closed in January and was raised via a simple agreement for future equity (SAFE), marks Oamo’s first funding to date. Oamo is using this capital to hire, ship its beta and start bringing businesses and consumers to its platform. Per Oamo, Index Coop, Lighthouse World, Ledn, and Saddle Finance have already joined the firm’s launch program. Oamo has opened up its waitlist and plans to roll out its beta in September.

Folla and Hadjeres have been focused on the crypto and Web3 sectors for some time. Folla, an ex-White Star Capital analyst, previously led Toronto-based Figment’s DataHub team and co-founded Montréal crypto art centre 0x Society. Following a five-year tenure at Eventbrite, Hadjeres created Montréal software development and blockchain firm Product Shop.

To date, Folla and Hadjeres have built out an eight-person team that also includes alumni from Web3 and crypto firms like Kraken and Polygon, Montréal tech company Ssense, and financial services and investment bank Morgan Stanley.

White Star Capital general partner Sep Alavi noted that “user data has become an essential commodity in the growth of technology companies over the past few decades.”

“Web3 startups have the same fundamental need for user acquisition and retention, but also their own unique demands for ID and data tracking solutions,” Alavi told BetaKit. “When Yannick and Ahmed came to us with Oamo, we knew they were the ones to crack this re-think of data brokerage that serves both users and businesses.”

As Folla noted, consumer awareness regarding data privacy issues and the value of their personal data has grown in recent years following various data leaks and scandals, and regulatory scrutiny has increased.

In the wake of Europe’s Digital Markets Act, which was passed in early 2022, and the United States’ (US) American Data Privacy and Protection Act, currently before US Congress, the CEO predicted that accessing user data will become more difficult over the next five years. Within this context, Oamo aims to offer companies a different means of doing so—a consensual one that also benefits users.

According to Folla, Oamo ultimately hopes to serve more than just the Web3 space. The CEO claimed that the startup will not depend on its own token or token prices to achieve adoption. “We will never have a token,” he added.

Speaking directly about the ongoing crypto and Web3 market downturn, Folla acknowledged that these conditions “might slow” Oamo’s growth during the startup’s early days since Oamo intends to target Web3 consumers and companies at its launch. However, the CEO expressed confidence that over the longer term, once the market stabilizes and the startup expands beyond just the Web3 ecosystem, Oamo will be well-positioned.

Feature image courtesy Oamo.

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S|W: The SaaS Weekly – Is Salesforce repositioning itself as a data company?

Alex Riehl — Tue, 06 Jun 2023 09:59:12 +0000

The SaaS Weekly is a weekly newsletter covering major SaaS news from Canada and around the globe.

Subscribe to S|W using the form at the bottom of this page to ensure you don’t miss out on the most important SaaS news every week!

PSG makes investment in Hostaway to expand its vacation-rental software amid travel rebound (BETAKIT)

Growth equity firm PSG has provided Toronto startup Hostaway, which provides software for managing short-term and vacation rentals, with $237.7 million CAD ($175 million USD) in growth financing.

Sources indicated to BetaKit that this has led PSG holding a majority ownership stake in Hostaway, but Hostaway declined to confirm.

TripAdvisor rival GetYourGuide nears $2 billion valuation as it raises fresh funds to invest in A.I. (CNBC)

German online travel startup GetYourGuide raised $194 million from investors, hoping to capitalize on a bump in demand for travel services in the summer, further an expansion into the U.S., and invest in large language models and other artificial intelligence tools.

Vrify secures $6 million Series A to help attract mining investment (BETAKIT)

Vrify, a mining communications startup, has announced a $6-million Series A raise that the company hopes will drive market expansion and updates to its technology platform.

Mining companies use Vrify’s 3D visualization technology and 360-degree mining site virtual tours to refine communications and help attract and secure investments.

A developer says Reddit could charge him $20 million a year to keep his app working (THE VERGE)

Apollo, the popular Reddit app for iOS, is just one of the apps that could face millions of dollars in fees as a result of Reddit’s new paid API model months before the forum site's IPO.

Twitter also recently started charging for its API, revoking developer access and switching to a subscription model which could reportedly cost $42,000 a month.

Ex-Panache, ScaleUp partners team up to launch new early-stage VC fund CMD Capital (BETAKIT)

Long-time Canadian technology startup investors Matt Roberts and David Dufresne have teamed up to launch their own early-stage VC firm, CMD Capital.

CMD Capital aims to raise up to $75 million CAD for startups that use artificial intelligence to solve problems across the B2B and enterprise sectors.

Cortex raises $35M Series B for its internal developer portal (TECHCRUNCH)

Cortex, a startup building an internal developer portal that helps engineering teams build better software at scale, announced a $35 million Series B funding round bringing the company's total funding to just under $53 million.

Platformatic secures $3.5 million, launches tech to simplify back-end development for enterprises (BETAKIT)

Platformatic has closed $3.5 million USD in seed funding and launched a new API platform to help developers and companies focus on building “applications that matter instead of complex underlying infrastructure.”

A survey of the challenges women founders face when fundraising (and how to overcome them) (BETAKIT)

40 women founders from 25 different countries share their views for other women entrepreneurs fundraising.

Report: 2021 VC boom in Canada was short-lived as market resets to pre-pandemic levels (BETAKIT)

Salesforce could be repositioning itself as a data company (TECHCRUNCH)

One of the most interesting pieces of data in Salesforce's financial report on Wednesday was which part of the company’s core offerings was actually the fastest growing cloud: the newest one, Data Cloud, which launched last year at Dreamforce.

Collision nears a one-year Toronto extension, efforts mount for a West Coast alternative (BETAKIT)

Doormat raises $1.25 million to make real estate legal services easier (BETAKIT)

Toronto-based Doormat, which provides real-estate legal services to facilitate the closing of property purchases and sales, has raised $1.25 million CAD in pre-seed funding.

Doormat, which is currently available in Ontario, said this funding will support its plans to expand into British Columbia and Alberta.

Airbnb sues New York City over short-term rental restrictions (REUTERS)

Airbnb Inc. filed a lawsuit against New York City over a new law it called a "de facto ban" against short-term rentals set to go into effect in July, which the company says will limit the number of people who can host rentals in the city.

The law, according to the filing, will require hosts to register with the New York City Mayor's Office of Special Enforcement.

Saskatoon startups SolusGuard, BetterCart win a combined $75,000 at Uniting the Prairies 2023 (BETAKIT)

Two Saskatoon startups walked out of the Uniting the Prairies 2023 pitch competition with a combined $75,000 in investment funding.

Workplace wearables company SolusGuard won $50,000 and B2B price analytics platform BetterCart clinched $25,000.

The post S|W: The SaaS Weekly – Is Salesforce repositioning itself as a data company? first appeared on BetaKit.

Vietnam’s FPT and Quebec’s Mila renew three-year strategic partnership, vow to practice responsible AI

Charles Mandel — Mon, 05 Jun 2023 19:07:54 +0000

FPT is Vietnam’s largest IT service provider, with more than 40,000 employees and recording total revenue of $1.87 billion USD ($2.51 billion CAD) last year. It delivers services in advanced analytics, AI, digital platforms, cloud, IoT, hyper-automation, and low-code, among others.

Professor Yoshua Bengio of the University of Montreal founded Mila, an AI research institute that brings together over 1,000 researchers specializing in machine learning. Mila is a non-profit organization specializing in the field of deep learning, particularly in language modelling, machine translation, object recognition, and generative models.

FPT and Mila have collaborated on multiple research projects on causality, language models, voice coding, and more.

FPT and Mila will collaborate on research projects related to large language models and natural language processing. The two organizations promised to promote responsible AI, which they defined as employing AI with good intentions to empower people and organizations.

Both sides will contribute to developing guidelines, best practices, and ethical standards that will promote transparency, fairness, accountability, and privacy in AI applications. The continued partnership seeks to solve complex problems and pioneer an AI ecosystem that fosters sustainable growth, human development, and social progress.

With recent sudden advances in AI, the fear that the technology could overtake peoples’ ability to control it has led to increased conversations about the need for legislation and standards.

In recent weeks, Bengio has signed letters warning of “the risk of extinction” from the use of AI and for a six-month pause on the use of advanced AI. Mila has also cautioned against the use of AI in harmful contexts.

As well, the Quebec government said in April it would invest $21 million over three years into Mila to further advance its work on socially beneficial AI.

Since the beginning of the partnership in June 2020, FPT and Mila have collaborated on multiple research projects on causality, language models, voice coding, and more.

With strategic consultation from Mila, FPT has established the first and largest AI Research Hub in Quy Nhon, Vietnam. With an investment of over $85 million, the complex will be a research, development, and learning facility for 20,000 tech personnel.

The FPT partnership is one of a number Mila maintains. The institute has partnered with Intel, AI Sweden, and IBM, among others.

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Interac appoints Jeremy Wilmot as new president and CEO

Josh Scott — Mon, 05 Jun 2023 17:19:11 +0000

Canadian payment services provider Interac has announced that Jeremy Wilmot is taking over from Mark O’Connell as the company’s president and CEO, effective August 1. O’Connell, who led Toronto-based Interac since 2006, is retiring at the end of October. Until then, he will assist in the transition in an advisory capacity.

Founded in 1984, Interac facilitates electronic financial transactions by linking financial institutions to other enterprises. Nearly 300 financial institutions are connected to Interac’s network. The firm, which competes against players like Visa and Mastercard, also serves as Canada’s debit card system and funds transfer network with its e-transfer service.

Mark O’Connell, who has led Toronto-based Interac since 2006, is retiring at the end of October.

Interac is set to serve as the exchange solution provider for Canada’s upcoming Real-Time Rail (RTR) payments system, alongside Mastercard’s Vocalink, which will help with clearing and settlements. Meant to modernize Canada’s core payments infrastructure by enabling payments to be sent and received within seconds, the RTR system will potentially have a significant impact on the country’s FinTech startups.

Canadian FinTech startups BetaKit spoke with in 2021 were wary of Interac’s selection for this role, noting that Interac’s system has historically been more easily accessible to financial industry incumbents like Big Five banks. This lack of equal access has been a key point of contention across the financial innovation space, including for payments startups.

For his part, O’Connell’s work as president and CEO of Interac included leading a 2018 restructuring that combined the business and its non-profit association into a single for-profit corporation and helping the firm evolve beyond just payments and into identity verification and authentication.

Wilmot began his career at ICL, now Fujitsu Services Europe, where he held various senior marketing and sales positions. Wilmot most recently served as chief product officer at Florida-based ACI Worldwide, a global real-time payments tech provider, where he also previously worked as group president and chief marketing and revenue officer during his more than 20-year ACI Worldwide tenure.

Feature image courtesy Interac.

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PacifiCan invests over $4 million into Indigenous-led clean energy, tech upskilling projects

Charlize Alcaraz — Mon, 05 Jun 2023 15:50:04 +0000

The Pacific Economic Development Agency of Canada (PacifiCan) is investing over $4 million into two organizations based in British Columbia to support economic development projects for Indigenous peoples.

The First Nations Technology Council received $2 million, while the BC Indigenous Clean Energy Initiative (BCICEI) secured $2.3 million. BCICEI also received $1.6 million from Indigenous Services Canada.

Recent report stresses continued need for programs that encourage Indigenous participation in the tech sector.

According to BCICEI, the combined $3.9 million it received will help 14 Indigenous communities in developing new clean energy projects.

BCICEI is funded by PacifiCan through the federal government’s Strategic Partnerships Initiative, with contributions from the Government of British Columbia’s CleanBC plan. The initiative is mandated to support the planning and development of clean energy generation projects, as well as solutions for energy efficiency and storage.

Since its inception in 2016, BCICEI said it has provided $26 million to support over 100 clean energy projects in First Nations in BC. These initiatives have generated enough clean energy to power over 3,600 homes and reduced enough CO2 emissions to take the equivalent of 128,000 cars off the road for a year, said Minister for PacifiCan and International Development Harjit Sajjan.

Additionally, BCICEI-funded projects have created nearly 1,400 jobs and reduced diesel usage by over 2.8 million litres annually.

Indigenous-led not-for-profit organization First Nations Technology Council will use the funding to deliver its technology employment training program named Digital Horizons.

First Nations Technology Council is mandated to support all 204 First Nations communities across British Columbia in the areas of digital skills development, connectivity, information management, as well as technical services. It claims to have partnered with over 150 Indigenous communities across the province to deliver its programs.

The Council published a report in February that maps the Indigenous tech landscape in British Columbia. Examining labour market opportunities and constraints, skills development and gaps, the review highlighted the need for more programs that encourage Indigenous participation in the tech sector. It found that 23 percent of Indigenous-owned businesses in BC are technology-focused.

The Digital Horizons initiative aims to train over 700 Indigenous people with the skills they would need to be “hired for in-demand jobs or to launch their own tech or tech-enabled businesses in the province,” according to the Council.

Featured image courtesy First Nations Technology Council

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F|T: The FinTech Times – Stripe looks to enter the credit space

Alex Riehl — Mon, 05 Jun 2023 11:00:34 +0000

OSC advisory panel backs stronger regulation of crypto platforms (BETAKIT)

In its 2022 annual report, the OSC’s Investor Advisory Panel said that it continues to believe crypto assets constitute a growing risk for financial consumers.

Apple Customers Say It’s Hard to Get Money Out of Goldman Sachs Savings Accounts (THE WALL STREET JOURNAL)

Apple’s savings account, a partnership with Goldman Sachs, launched in April to great fanfare. Some customers say it has been hard to get their money out.

Sometimes, their money appeared to have simply vanished, not showing up in their Apple account or in the account they were trying to move it to.

Over $1 million in cash available for Canadian startups in FinTech, sciences, and more (BETAKIT)

There is $1.6 million up for grabs in cash prizes and grants available to Canadian startups in several industries, including FinTech, applied sciences, and more through Momentum, Innovate BC, and Platform Calgary.

Fintech giant Stripe is getting into the credit game (TECHCRUNCH)

Previously, Stripe-issued cards could only be used to spend money from a prefunded account. Its expansion into charge cards will give companies the ability to create and distribute virtual or physical charge cards that allow their customers to spend on credit rather than using the funds in their accounts.

Ex-Panache, ScaleUp partners team up to launch new early-stage VC fund CMD Capital (BETAKIT)

Long-time Canadian technology startup investors Matt Roberts and David Dufresne have teamed up to launch their own early-stage VC firm, CMD Capital.

CMD Capital aims to raise up to $75 million CAD for startups that use artificial intelligence to solve problems across the B2B and enterprise sectors.

A survey of the challenges women founders face when fundraising (and how to overcome them) (BETAKIT)

40 women founders from 25 different countries share their views for other women entrepreneurs fundraising.

MakerDAO Votes to Ditch $500M in Paxos Dollar Stablecoin From Reserve Assets (COINDESK)

Decentralized finance lending protocol MakerDAO’s community has voted to ditch $500 million Paxos Dollar stablecoin from its reserves, impacting half of the token’s supply.

The decision has a significant impact on embattled stablecoin issuer Paxos, as Maker’s treasury holds roughly half of USDP’s $1 billion supply.

Report: 2021 VC boom in Canada was short-lived as market resets to pre-pandemic levels (BETAKIT)

NomuPay, formed from pieces of failed fintech Wirecard, says it’s raised $53.6M for cross-border payments (TECHCRUNCH)

NomuPay — a unified payments business formed by VC Finch Capital out of its 2021 acquisitions of Wirecard assets, says that it has now raised $53.6 million, funding that it is using to continue expanding its operations, and building more integrations and other functionality into its API.

Collision nears a one-year Toronto extension, efforts mount for a West Coast alternative (BETAKIT)

Multichain team says it can't contact CEO amid protocol problems (THE BLOCK)

Multichain, the cross-chain protocol, confirmed Wednesday that the team is unable to contact its chief executive amid ongoing technology problems.

"The team has done everything possible to maintain the protocol running, but we are currently unable to contact CEO Zhaojun and obtain the necessary server access for maintenance," Multichain said in a Twitter statement.

With regulatory approval, Hiive launches VC secondary trading platform in Canada (BETAKIT)

Vancouver-based FinTech startup Hiive has rolled out its venture capital secondary marketplace to Canadians after announcing it has received registration across Canada as an exempt market dealer.

Biggest Crypto Stablecoin Recovers All Value Lost in 2022 Crash
(BNN BLOOMBERG)

Tether Holdings Ltd.’s stablecoin has recovered all of the roughly $20 billion in market value it lost following the collapse of algorithmic rival TerraUSD a little over a year ago.

USDT’s recovery is a testament to the dominant role it plays in crypto as a means for conducting transactions and storing value.

The post F|T: The FinTech Times – Stripe looks to enter the credit space first appeared on BetaKit.

Inside Canada’s new early-stage VC firm

Alex Riehl — Mon, 05 Jun 2023 09:00:49 +0000

Welcome to BetaKit’s startup stories of the week! Here, you will find the week’s most important news, features, and editorials published on BetaKit.

If you prefer this update hit your inbox every week, make sure to subscribe to the BetaKit Newsletter using the form at the bottom of this page.

Latest Funding, Acquisitions, and Layoffs

VAN – Vrify – $6M (read more)
VAN – Platformatic – $3.5M (read more)
SSK – SolusGuard wins $50K at Uniting the Prairies 2023 (read more)
SSK – BetterCart wins $25K at Uniting the Prairies 2023 (read more)
TOR – Hostaway receives $175M investment (read more)
TOR – Doormat – $1.25M (read more)
MTL – FemTherapeutics – $2.5M (read more)
FRD – Picketa – $1.4M (read more)

The BetaKit Podcast

CANADA IS IN A HEALTH CARE CRISIS. WHAT'S THE PRESCRIPTION?

"We are in a time of the worst health care crisis we've seen in Canada. It is really close to a collapse of the system across the country."

Brett Belchetz (Maple) and Alexandra Greenhill (Careteam Technologies) join to diagnose the failings of Canada's health care system before offering a prescription. How can innovators help? Can a balance be struck between public and private care? The doctors will see you now.

A WAKE FOR BUZZFEED, GAWKER, VICE WITH CANADALAND’S JONATHAN GOLDSBIE

“That is a deeply unhealthy way to live and to work and it’s ultimately not a successful way to sustain a publication.”

CANADALAND news editor Jonathan Goldsbie joins to discuss the rampant demise of digital media publications launched in the 2000s and how they compare to the slow death of traditional media. Advice for aspiring young journalists comes mixed with an investigation of the ideal media business model in 2023.

Subscribe to B|K: The BetaKit Newsletter

The post Inside Canada’s new early-stage VC firm first appeared on BetaKit.

Canada is in a health care crisis. What’s the prescription?

Douglas Soltys — Sun, 04 Jun 2023 21:19:15 +0000

A recent Ipsos poll recently revealed that less than half of Canadians are pleased with their public health care system.

I say revealed but it shouldn’t be a revelation to anyone in Canada. I don’t know a single person that is currently happy with the state of things. But the reasons why are complex.

Take, for example, spending on health care. That same Ipsos poll notes 38 percent of Canadians believe that investments in their provincial health care system over the last decade have had no impact, with approximately 30 percent believing the system has deteriorated over the same period.

“We are in a time of the worst health care crisis we’ve seen in Canada. It is really close to a collapse of the system across the country.”
– Brett Belchetz,
Maple CEO

I happen to live in a province where the premier is about $21.3 billion short in funding allocation for both current health care programs and expansion plans. Now, this premier has a history of underutilizing available resources, failing to fully spend COVID-19 response program funding or use local startups able to help vaccinate the province.

This premier has quietly increased funding to private hospitals run by his donors, however, and passed a bill allowing private clinics to conduct more surgeries.

Oh, I’ve gone and done it now, laying my hands on the third rail of Canadian health care: the public vs. private debate.

Dr. Brett Belchetz, CEO of Maple, is familiar with the sting of its current. Maple and similar virtual health-care providers are currently the target of Health Minister Jean-Yves Duclos, ostensibly because patients are being charged for virtual visits with their family physician.

But wait, isn’t this the exact same type of service that we were all praising during the height of the (still-ongoing) pandemic? So is the issue the tech behind the care or the fact that Maple doesn’t have equal access to those all-too-important provincially subsidized billing codes?

Oh and political handwringing over my premier’s good faith or otherwise openness towards privatized health care aside, in fairness, I must mention that Ontario actually ranked second-lowest among those surveyed in that Ipsos poll regarding doubt in the system. None of this makes sense.

As Dr. Alexandra Greenhill, CEO of Careteam Technologies, notes on this episode, we can’t provide a prescription without a proper diagnosis first. She’s joined by Dr. Belchetz to do just that.

Let’s dig in.

Subscribe via: RSS, Apple Podcasts, Spotify, Stitcher, Google Podcasts, YouTube

The BetaKit Podcast is hosted by Douglas Soltys & Rob Kenedi. Edited by Kattie Laur. Sponsored by Goodlawyer.

The post Canada is in a health care crisis. What’s the prescription? first appeared on BetaKit.

As crypto markets consolidate, Bitbuy debuts new staking offering

Charles Mandel — Sun, 04 Jun 2023 10:00:13 +0000

Even as one major crypto trading platform, Binance, indicated it was exiting the Canadian market, Bitbuy Technologies has moved to introduce more crypto offerings. Bitbuy, a subsidiary of WonderFi Technologies, said June 2 that it would begin adding Cardano, a public blockchain platform, to its staking services.

Staking is offering digital assets like crypto as collateral to validate transactions on a blockchain. In return for taking on the risk of staking, participants are rewarded with coins and tokens.

Consolidation in the crypto market has taken place within the context of new regulatory crackdowns following concern over volatility

Bitbuy claimed that since it began offering staking in November 2022, more than 42 percent of monthly active Bitbuy users currently engage in crypto staking.

Bitbuy said it uses BitGo Trust Company to look after its staked assets. BitGo, one of the world’s largest crypto custodians, has claimed over $64 billion USD in assets under custody.

Bitbuy also said that Figment Inc. provides Bitbuy’s clients with the ability to stake their assets, and claimed more than 200 clients and billions of dollars of assets already staked.

Wealthsimple claimed it was the first regulated crypto platform in Canada to offer staking in October 2022, when it first announced the service.

Even as Bitbuy announced its newest offering, Shakepay became the latest restricted crypto dealer in Canada, and the first Quebec-based crypto asset trading program to register with the Ontario Securities Commission. Shakepay announced the news over Twitter on May 30. It joins 11 other registered platforms.

VirgoCX, another regulated Canadian crypto platform, also said it intended to move into staking after raising $10 million CAD in Series A funding.

A trio of regulated Canadian cryptocurrency exchanges consolidated in April when WonderFi, Coinsquare, and CoinSmart Financial announced that the three companies reached an agreement to combine and create what they claim will be “Canada’s largest regulated crypto asset trading platform.”

Collectively, Vancouver-based WonderFi, and Toronto’s Coinsquare and CoinSmart claim to have over $600 million CAD in assets under custody and more than 1.65 million users.

Bitbuy previously took aim at Wealthsimple, when it added stock trading to its platform in September 2022. At the time, Bitbuy said that by adding stock trading to its crypto-exchange platform, it was “taking aim at leading competitor Wealthsimple,” as a spokesperson for the company put it in a statement to BetaKit.

With its beefed-up staking program, Bitbuy appears to be going after Wealthsimple once again.

In general, consolidation in the crypto market has taken place within the context of new regulatory crackdowns following concern over the volatility of the platforms.

In a move to prevent another FTX collapse, the Canadian Securities Administrators (CSA) levied more restrictions on crypto trading platforms in the country in May. The changes included prohibiting exchanges from permitting users to buy or deposit stablecoins or proprietary tokens “without the prior written consent of the CSA.”

These stricter rules have put the squeeze on crypto businesses as they navigate new compliance standards in a volatile crypto market. This has pushed out the likes of Paxos and OKX, which both announced their exits from Canada in April, as well as Binance.

Despite the ongoing crackdown on crypto platforms, the OSC’s Investor Advisory Panel warned in early June that it continues to believe crypto assets constitute a growing risk for financial consumers.

The post As crypto markets consolidate, Bitbuy debuts new staking offering first appeared on BetaKit.

With Collision nearing a one-year Toronto extension, efforts are mounting for a West Coast alternative

Josh Scott — Fri, 02 Jun 2023 21:48:10 +0000

With Collision’s long-term future in Toronto still uncertain, BetaKit has learned that a group is exploring the possibility of pitching the major North American tech conference to come to Vancouver.

Collision 2023, which kicks off later this month, is currently set to be the annual tech event’s last outing in Toronto. As BetaKit has reported, the conference’s future in Canada beyond this year is in doubt following former Toronto Mayor John Tory’s departure, amid an increased request for public funding to facilitate the event’s stay, competing bids from other cities, and financial pressure on both the City of Toronto and Ontario and federal governments.

Amid ongoing negotiations for a deal to extend Collision’s stay in Toronto, efforts are mounting for a possible Vancouver bid for the conference.

Amid ongoing negotiations for a deal to extend Collision’s stay in Toronto, efforts are mounting for a British Columbia (BC) alternative, as multiple Vancouver organizations connected to Frontier Collective have begun exploring the idea of luring Collision to the city.

Web Summit (the parent company of Collision), Destination Toronto, and the City of Toronto have all previously declined to comment on Collision’s negotiations with Toronto.

Speaking with BetaKit on condition of anonymity, a source familiar with negotiations indicated the conference is near an agreement to remain in Toronto for another year at an amount and terms similar to Collision’s previous $6.5 million CAD yearly deal. This total would represent a far cry from the north of $40 million over three years that BetaKit has reported Collision has previously sought to stay.

As BetaKit has reported, other sources had indicated that Collision and Web Summit co-founder and CEO Paddy Cosgrave recently communicated to the Toronto tech community the conference was set to return on a “one-year bridge.”

Even if that one-year Toronto extension for 2024 comes to fruition, Collision’s future in Toronto—and Canada—beyond next year is still up in the air.

As some jockey to keep Collision in the country, while others, including Startupfest founder Philippe Telio, argue that the conference’s increased asking price to stay is too high, Frontier Collective and affiliated groups have started publicly and privately rallying support for a potential Vancouver bid for Collision.

Frontier Collective is a Vancouver innovation ecosystem advocacy group. The organization’s website lists 35 founding partners, including Destination Vancouver, the Vancouver Economic Commission (VEC), the Business Development Bank of Canada, Innovate BC, Panache Ventures, Dapper Labs, Unbounce, and Daily Hive. Casey Lau, head of Asia for Web Summit’s RISE conference, is also notably listed as a Frontier Collective member.

Since the publication of BetaKit’s original story noting Collision’s uncertain future in Canada, some members of Frontier Collective have made public statements expressing interest in bringing the conference to Vancouver.

Daily Hive co-founder and CEO Karm Sumal published an opinion piece arguing that “bringing Collision Conference here is an incredible opportunity that we cannot afford to miss,” while Frontier Collective co-founder and COO Kassandra Linklater has asked on LinkedIn whether Collision is the “NXNW Vancouver has been looking for?”

Multiple sources have indicated to BetaKit that the notion is more than a public question at this point, with ongoing conversations among stakeholders behind the scenes about exploring a pitch for Collision as part of a push that has garnered the attention of the City of Vancouver and the Government of BC.

A source told BetaKit that the full list of Vancouver ecosystem and consortium partners exploring a potential bid to bring Collision to the city will likely be announced next week.

“Bringing Collision [to Vancouver] is an incredible opportunity that we cannot afford to miss.”

“Vancouver is having its moment and we want to make sure that the ecosystem that has blossomed here in the last several years has the infrastructure it needs to succeed,” Linklater told BetaKit in an interview. “Whether it’s going to be Collision or another international event, we want to make sure Vancouver has its presence on a global stage.”

VEC CEO Eleena Marley noted that “key players” would still need to come together in order for a formal bid to be assembled. “[We’re] excited to see how those conversations go, but it is early days,” Marley told BetaKit in an interview, emphasizing that the organization remains “very committed” to exploring the possibility.

James Raymond, senior manager of research at VEC, told BetaKit that “It comes down to the numbers and economic impact, but we’re doing everything we can to make sure Vancouver can put its best foot forward.”

BetaKit requested economic impact projections for an event of Collision’s size coming to the city, but Destination Vancouver did not provide them by publication time.

For his part, Sumal argued in his op-ed that Collision could be a catalyst for economic growth in Vancouver and a boon to the city’s innovation and small-business communities, hailing Collision’s commitment to promoting diversity as aligned with Vancouver’s values.

“Beyond the economic and societal benefits, Vancouver needs a gateway to the international community,” he said.

Other notable Vancouver-based innovation events include the volunteer-run Vancouver Startup Week, currently running until June 9, and SAAS NORTH producer Cube Business Media’s TechExit.io, which was held in Vancouver earlier this week and will be hosted in Toronto later this year. But with both the BC Tech Summit and Traction on hiatus, Vancouver presently lacks a locally-run tech conference for an international audience.

To bridge this gap, multiple other national tech event organizers have explored the possibility of launching a Vancouver event—including Cube Business Media, which BetaKit was first to report revealed a new conference earlier this week called INNOVATEwest set to launch in April 2024. Cube Business Media’s decision to announce INNOVATEwest now, ahead of schedule, was informed by recent conversations about bringing Collision to Vancouver amid the absence of a large-scale tech event in the city.

“The West is lacking a big tent, multi-sector Conference gathering … Something that brings together all of the great tech innovation that’s happening all along the west coast,” Cube Business Media co-founder and senior vice-president David Tyldesley told BetaKit.

Various members of the Frontier Collective.

“We wish there was a Canadian-led solution that had that global innovation network that was already ready, but since there’s an absence of that currently, we have to explore what’s currently in the market,” Linklater noted.

For those who believe that bringing Collision to Vancouver is the right way to address that gap, 2023 could be a good time for the city to pitch to host the conference in future years. For its part, Frontier Collective plans to rally a Vancouver delegation at Collision 2023 in Toronto this year, while Vancouver Mayor Ken Sim is notably set to speak at this year’s event.

This would not be the first time that Vancouver has explored the possibility of hosting Collision—Vancouver previously pushed for the conference years ago, competing alongside Toronto to bring it to Canada in the first place. At the time, the conference was hosted in New Orleans. However, speaking on condition of anonymity, multiple sources familiar with these efforts told BetaKit that it was ultimately determined that Vancouver lacked the hotel capacity and convention centre space to handle Collision and its growth ambitions.

“There is no [other] facility large enough in Canada,” one source argued. “Toronto is the only place they can do it.”

Multiple sources told BetaKit that Vancouver does not possess the requisite convention centre space or hotel capacity to host an event the size of Collision.

A December 2022 letter obtained by BetaKit, signed by Ontario mayors and chairs of municipalities, also claimed that Toronto is the only Canadian city that meets Collision’s hosting requirements. Sources told BetaKit that the only way around this issue for Vancouver would be for Collision to host a smaller event in the city in exchange for more public investment or hold its conference earlier in the year, rather than in June.

For his part, Raymond acknowledged that Vancouver’s hotel capacity in the summer season—when the city also already plays host to a number of other large events—would need to be negotiated.

Marley argued that doing this would be possible. “My understanding is there is more than enough infrastructure … Vancouver is very well set up to be able to host something of this size from an infrastructure perspective,” she added.

As to Vancouver’s physical convention centre capacity, VEC deferred to Destination Vancouver, to which BetaKit sent multiple interview requests. However, the organization did not make anyone available to speak for this story.

.@AaronAnandji, working on a #vsw2023 story for @BetaKit, asked mayor @KenSimCity if he’s working to bring @CollisionHQ to Vancouver. His answer?

“Let’s make sure we keep Collision in Canada. And whatever it takes to keep Collision in Canada, we’ll be supportive.” pic.twitter.com/a29Z2txu0d

— BetaKit (@BetaKit) June 9, 2023

BetaKit also contacted the City of Vancouver for comment on the feasibility of bringing Collision to Vancouver and ongoing efforts to make this happen, but the City did not respond by publication time.

Meanwhile, when reached by BetaKit via email, a spokesperson from BC’s Ministry of Jobs, Economic Development, and Innovation declined to answer questions related to these topics, instead providing the following statement: “BC companies who attend Collision always see it as an extremely valuable experience and a great opportunity to network and meet investors. This conference is of great benefit to Canada and we’d like to see it stay here.”

Feature image courtesy Alejandro Luengo via Unsplash.

The post With Collision nearing a one-year Toronto extension, efforts are mounting for a West Coast alternative first appeared on BetaKit.

A survey of the challenges women founders face when fundraising (and how to overcome them)

Douglas Soltys — Fri, 02 Jun 2023 21:16:11 +0000

Co-founded by Kate Dwyer and Penelope Gazin, Witchsy is an online marketplace startup for artwork. Whilst trying to secure venture capital funding in Silicon Valley in 2016, they struggled to get meetings with Venture Capitalists (VCs) and their enquiries often went unanswered. When they did secure meetings, many of the male investors they met with wouldn’t take them seriously.

In a bid to overcome this, the two women created a third fictional male co-founder called Keith Mann. When they began using Keith’s signature on emails to developers and potential investors, Keith got faster responses and more meetings than his women co-founders ever did. Our research suggests that this story is just as relevant today as when this sequence of events unfolded.

The fact remains that the challenges around securing funding for women founders are both ongoing and well documented.

Today, Witchsy is a thriving and profitable online business selling “art, pins, shirts, patches and weird wares made by special artists.” The founders’ success means their experience of sexism may serve as both a warning and inspiration for women entrepreneurs. On the one hand, as women, they faced a unique set of barriers not faced by men. On the other, they overcame these challenges to fund, launch and run a successful business.

Put simply, it can be done. But the fact remains that the challenges around securing funding for women founders are both ongoing and well documented. The British Venture Capital Association research showed that for every £1 of VC investment in startups in the UK, all-men founder teams get 89 pence, mixed-gender teams 10 pence, and all-women teams less than 1 pence. Furthermore, the Rose Review of Female Entrepreneurship in the UK found that around one-third of women cite access to funding as the biggest barrier to starting a business, compared to 20 percent of men.

The UK isn’t alone in exhibiting such a gender imbalance. According to the last count of The State of European Tech 2021 study, women founders secured just 1 percent of all VC investment in Europe. Researchers of the report write: “The great gender funding divide remains a harsh reality for the European tech ecosystem.” There are signs this divide has been getting even wider at a global level with only 3 percent of total worldwide VC funding going to women-led startups in 2019 and falling further to just 2 percent in 2020. It becomes even harder for women of ethnic minorities, with only 1 Black woman founder receiving early-stage VC investment in 2020.

About our research and its goals

In light of this evidence, we took a closer look at the issues facing women entrepreneurs. We conducted interviews with 40 successful women founders from 25 different countries. We explored their first-hand experiences and perceptions of fundraising, from seed rounds through to Series D and beyond, and asked what advice they would give to other women entrepreneurs following a similar path. To make sure our interviewees could speak freely, all interviews were conducted off the record. Throughout the report, we have included verbatim quotes that are anonymized as the interviews were conducted on a non-attributable basis.

We analyzed their responses and, whilst we covered much ground in the interviews, broadly we found five recurring themes. We put these forward here as our key recommendations for overcoming the barriers facing women founders seeking capital. This report aims to shine a light on the difficulties women routinely face when raising funding, whilst also giving inspiration and constructive advice to women that it is achievable despite the odds

The top five recommendations from our women founders:

Be strategic and intuitive in selecting your investors
Blend the best of traits typically associated with men and women
Master the art of passionate and authentic storytelling
Support other women, including through networks
Retain your integrity and stay true to yourself

The most significant takeaway that emerged from the research: be prepared. According to Inc.’s Women Entrepreneurship Report, 62 percent of women entrepreneurs say they’ve experienced some form of gender bias during the funding process. Many of the women founders we spoke to had encountered sexism in one form or another during the fundraising process. Furthermore, those that hadn’t experienced it directly had heard of other women who had. Their advice was that it is important to have a firm idea of what you will do when it arises.

1. Be strategic and intuitive in selecting your investors

While choosing investors wisely is vital for any startup, our women founder interviewees believe that it is especially crucial for women-led businesses. In their view, the selection process should involve both “head” and “heart.” The founders we spoke to recommended researching thoroughly the diversity and type of investor that you approach so that they reflect the values that are important to you. They also recommended applying gut feel and intuition to tell you whether an investor relationship is right for you and your business. Acting on your instincts also means being prepared to walk away if you feel they aren’t. In this context, one founder described female intuition as a “superpower” that gives women an edge in making the right choice.

All agreed that the relationship with investors is a two-way street: you need to feel a genuine connection with them – as they will be an integral part of your business, potentially for many years to come. They also recommended that you need to be clear on what you want from the investor relationship aside from just money. For some founders, access to their network was very important. For others, it was the advice and mentoring support that was of great value.

“In my experience female investors are more likely to invest in companies or long-term projects that aim to have a positive social impact, rather than looking for a quick transactional relationship.”

Conversations with the women founders revealed that part of being strategic was choosing when to go for fundraising and evaluating if you really need to. Sharing insights into investors’ points of view, one founder commented that investors want to know that you want their money to expand your business, and not to survive. Many interviewees commented that founders are always fundraising and part of this should include networking. They believed that building relationships early on with investors is crucial. This is something that women may struggle with, preferring to only present their business to potential investors when they believe it is fully ready rather than engaging investors earlier on with a less well-developed product. They commented on the sweet spot of timing the fundraise so it’s not too early and not too late to ensure securing the investors that are right for the business.

Speaking about their experiences in pitch meetings, several had experienced situations where male investors had made personal comments about their age or appearance. Interviewees who had male co-founders commented that their male colleagues were typically asked different types of questions. Investors asked quantitative, data-centric and visionary queries to the male co-founder. However, women co-founders were asked more speculative, qualitative, and risk questions to the woman. This echoes the findings in this Harvard Business Review article.

On the rare occasions where the potential investors were women, they tended to be more interested in ESG-type businesses and more supportive of women founders. But one interviewee, while agreeing this was the case, said some women investors were wary of being seen to focus too much on investing in women entrepreneurs. All the founders interviewed commented on how few women investors there were especially in male-dominated industries. This is something we’ll be focusing on in our next piece of research.

2. Blend the best of traits typically associated with men and women

Interviews with some of the women founders shed light on what they observed to be some personality differences between men and women. The overall view was that entrepreneurs of both genders have their own respective complementary strengths, and that both can benefit by adopting some of these from the other.

Many of our interviewees felt that their key strengths as women are feminine intuition, passion, and empathy. They viewed their ability to communicate with emotion as an advantage – but added that it was vital to own this aspect of their femininity and be authentic in expressing it. Interestingly, some of the respondents who have male co-founders noted how they instinctively took on a more compassionate role in investor meetings, while their male business partners focused on the more technical details. It is important to note that this was not the case for women co-founders with a technical or financial background or those who were responsible for this area. In situations where a woman founder was the CFO, she would be asked financial questions by investors, recognizing that this was her area of expertise.

Some of what the interviewees cited as traditionally male traits were exhibiting confidence in their own ability and not taking criticism personally. Our interviewees said greater confidence does come with experience, but that they believed being thick-skinned is a harder behaviour to learn, particularly for women. Some described how they’ve deliberately adapted their behaviour or style to get their message across more effectively. However, others stressed that it shouldn’t be down to women to adapt in order to confront outdated stereotypes, as this compromises who they really are.

3. Master the art of passionate and authentic storytelling

A key aspect of raising capital is telling a compelling story that investors will buy into. This is especially important in the early rounds where success at pre-seed and seed rounds rely, in part, on potential. That’s why successful women founders say that, as a woman entrepreneur, it’s vital to become a great storyteller, and incorporate your passion and your “why” into your story. It’s vital to prepare painstakingly, practise the presentation in advance, get it honed to perfection – and be very clear on what you’ll say about who you are, why you set up your business, what the metrics are, and where you want to take it.

Our interviewees also cautioned against underselling yourself or your idea. Some felt that women tend to be more humble and modest than men. This is an area where appropriating some traditionally “male” traits can be especially useful, as discussed earlier. They urged women entrepreneurs to show that they own their story and their business – and to be proud and passionate about both. And when telling the story, they stressed the importance of staying true to yourself. The story should bring you back to why you initially started your business and help you to distinguish between which ideas to take on board and which to discard.

A number of our women founders described techniques they use to keep themselves centred on their story. A recurrent theme was the added strength and resilience that come from seeing yourself as an embodiment of your company – effectively personifying yourself as the business, and thereby distancing your own individual feelings and emotions from anything that’s said about it.

4. Support other women, including through networks

Many interviewees commented on how lonely the entrepreneurial journey is and a recurring theme of our conversations with women founders was the importance of mutual support and, in many cases, the subsequent friendships that form between women in the startup ecosystem. Many interviewees said they were members of networks of women entrepreneurs, both formal and informal, who had come together to share experiences and provide mutual support.

“Don’t give up as you giving up means less representation for other female founders. One of us getting to the top means one more role model to look up to.”

The common view was that these networks can be a valuable source of guidance and advice, and a help to women as they grow their businesses. For example, our interviewees gave examples of sharing pitch decks, mentoring connections, and references. In this way, it’s hoped that the networks will help to increase the numbers of successful women entrepreneurs and investors over time.

A further positive force for change – one highlighted by several interviewees – is experienced women entrepreneurs mentoring the up-and-coming generation. Furthermore, many of the interviewees spoke about the importance of both having and being role models for other women.

However, a number of interviewees sounded a note of caution about diversity sometimes being used as a public relations exercise rather than a genuine attempt to drive change. They counselled that the women founders should seek out the best mentor, investor or adviser irrespective of their gender. This comes back to the point about using your intuition when choosing where you go for support.

5. Retain your integrity and stay true to yourself

Virtually all of the women founders we spoke to were fully aware of the statistics about how few women-founded businesses manage to secure VC funding and knew about the challenges they would encounter as a woman entrepreneur. However, they stressed that – as their own success showed – these challenges can be overcome and that as an aspiring woman entrepreneur, you shouldn’t let the statistics discourage you. As they highlighted, it’s important to remember that the media often focuses on the negative news stories, such as the gender divide, and is less likely to report on stories that show progress is being made.

Coining a memorable phrase, one respondent summed up the hurdles facing women startup entrepreneurs as a “female tax” – reflecting the need for women to work harder and be more resilient than their male counterparts. But in common with many other interviewees, she also stressed the importance of retaining your integrity and staying true to yourself throughout the journey, whatever might happen along the way. This means having clear red lines for what you will and won’t tolerate, knowing what your values are, and being ready to deal with unacceptable behaviour when it arises.

The big takeaway: be prepared

In our view, two distinct messages come across from our series of conversations with successful women founders. The first is that any woman seeking funding for a startup business will almost certainly encounter barriers related to their gender along the way. The other is that being prepared for these challenges and addressing them in the right way is key.

But while change may be relatively gradual, it can and will happen. As a recent Financial Times article showed, in 2022, women entrepreneurs launched a record number of businesses in the UK.

The pioneering women entrepreneurs we’ve interviewed are blazing a trail for others to follow. As one founder commented: “The entire startup ecosystem needs to decide to make a change in terms of facilitating more female-led businesses.” That’s the journey we’re on and every successful woman founder moves us forward another step.

A huge thank you to the inspiring women founders who took part in this project. We wish you every success with your businesses and the part you are playing in changing the world.

This article was originally published by PwC.

Jenni Chance is the Senior Manager, Entrepreneurial & Private Business, PwC United Kingdom. Get in touch with her here. Sabrina Fitzgerald is the National Leader for Private Clients, PwC Canada. Get in touch with her here.

The post A survey of the challenges women founders face when fundraising (and how to overcome them) first appeared on BetaKit.

Shopify launches Shop Cash rewards program in the US

Charlize Alcaraz — Fri, 02 Jun 2023 16:48:14 +0000

Shopify has officially launched its rewards program called Shop Cash in the United States (U.S.) as the Canadian tech company enters its 17th year of operations.

Shop Cash’s launch is part of Shopify’s first Shop Day event on June 2, where merchants are giving away more than $1,000,000 USD in Shop Cash. This initiative is similar to other dedicated deal days from e-commerce brands, including Amazon’s Prime Day, which is anticipated to take place sometime in July this year for Canada.

Funded by Shopify, Shop Cash lets users in the U.S. earn one percent back on purchases made through Shop Pay, its online checkout service.

Shopify quietly rolled out a beta version of Shop Cash in 2022, allowing some consumers to use their rewards to make purchases in Shopify’s mobile shopping app named Shop.

For the Shop Day event, Shopify has partnered with “dozens of merchants,” including popular YouTube creator MrBeast and Monday Swimwear, to share custom links across their social channels to their fans. Shoppers can redeem Shop Cash by clicking on those links and spending directly in the Shop app. Through Shop Cash offers, users can boost their Shop Cash accumulation by 2x, 5x, or 10x.

Shopify has made several enhancements to its offerings in recent years as it continues to build out its suite of e-commerce solutions for merchants.

In its winter product update report published in February, Shopify said it made over 100 product enhancements during the second half of its fiscal year. A number of these updates focus on expanding Shop, which included the rewards program as well as biometric sign-in experiences like facial ID and fingerprint.

Shopify also announced new features for its platform’s checkout functionality. Checkouts with Shopify will default to a one-page experience.

In a recent study, Shopify claimed that among other e-commerce brands, its checkout solution has the best conversion rates, which refers to the percentage of website visitors making purchases.

Working with a “Big Three global management consulting firm,” the review found that Shopify’s overall conversion rate outpaces its competitors by up to 36 percent. It compared Shopify’s performance with Salesforce, Magento, and BigCommerce.

Notably, PayPal and Amazon, which also offer accelerated checkout services, were not mentioned in the study. It appears there are no publicly available studies that compare Shopify’s conversion rates with the two major American corporations.

Featured image courtesy Shop Day.

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FemTherapeutics raises $2.5 million CAD to address pelvic floor disorders with custom vaginal prosthetics

Charlize Alcaraz — Fri, 02 Jun 2023 10:00:36 +0000

The medical speciality relating to the female reproductive organs, or gynecology, has traditionally been focused on fertility, leaving gaps to be addressed in other areas of women’s health like pelvic floor disorders (PFDs), one Canadian women’s health startup argues.

One in every four women, and one in every two women over 80 will suffer from PFDs, which involves the downward descent of the pelvic organs into or through the vagina.

This can cause discomfort and bulging in the vagina, pelvic pressure, leaking of urine, and other symptoms that could drastically affect quality of life.

Current treatment options for PFDs come with significant risks. Pelvic surgery, for example, has a high failure rate and rate of subsequent surgeries in North America, according to research published in the American Journal of Obstetrics and Gynecology. Vaginal pessaries, on the other hand, could potentially deliver benefits with fewer risks and complications.

A pessary is a soft, flexible device that is placed inside the vagina to help support surrounding organs such as the bladder, vagina, uterus, and rectum, holding them in place.

“Vaginal pessaries had not changed since the 1950s, and we saw that there was a clear need to improve on that design.”

In 2019, a group of Canadian women received $21.5 million in settlements for experiencing ill effects from transvaginal mesh implants, a surgical treatment for pelvic floor disorders.

FemTherapeutics, a startup from Montréal, aims to improve pelvic medicine. Combining artificial intelligence, cloud computing, and 3D printing, the company is developing customizable gynecological prosthetics.

To support its mission, FemTherapeutics has raised a $2.5-million CAD ($1.85 million USD) round. 2048 Ventures led the round, with participation from Investissement Quebec, The51 Ventures, and Sheboot, as well as several physicians and angel investors.

According to FemTherapeutics, the proceeds will be used to further develop its technology, kick off pivotal clinical studies, as well as expand its team, intellectual property portfolio, and R&D efforts.

FemTherapeutics was founded by Inara Lalani, Negin Ashouri, and Dr. Mihnea Gangal, who were tasked with developing innovative solutions for surgical or clinical needs for gynecology as part of the Montreal Surgical Innovation Program at McGill University in 2019.

The Surgical Innovation Program is a “cross-disciplinary graduate program that equips trainees to enter the clinical technology sector.”
As the team focused on vaginal pessaries, they found that the devices’ high failure rate could be attributed to a decades-long drought in innovation.

“Vaginal pessaries had not changed since the 1950s, and we saw that there was a clear need to improve on that design,” said Lalani.

FemTherapeutics software allows clinicians to visualize each patient’s condition in 3D, and subsequently propose pessary designs that are modelled to the patient’s unique anatomical characteristics.

Once the designs are finalized, FemTherapeutics prints the pessary with medical grade silicone. The startup said its technology can be expanded across various areas in women’s health such as custom menstrual and sexual wellness products, among others.

FemTherapeutics’ pessary applicator. Image courtesy FemTherapeutics.

Operating on a B2B2C model, FemTherapeutics works with physicians who design and fit the devices to each patient. Physicians will buy the system and charge the patient’s insurance providers. There is also an opportunity to license the startup’s AI platform and datasets to customize other medical devices.

Though FemTherapeutics claims that it’s building the world’s first vaginal pessary customized specifically for each patient, there are other startups developing similar solutions.

In Canada, there is Toronto-based Cosm Medical, which is preparing to launch its own version of patient-matched gynecological prosthetics for female pelvic floor disorders.

Cosm recently received a $1.9-million investment from INOVAIT in April to integrate AI capabilities into its platform, meant to automate ultrasound image analysis and increase the accuracy of pessary fittings. It also raised a $4.7-million seed round in April 2022.

Cosm told BetaKit that it is currently preparing for product launch as it awaits approval from the US Food and Drug Administration.

As for FemTherapeutics, it plans to spend the next 12 months obtaining regulatory clearance for its devices and platform in Canada and the United States. It also plans to kick off several clinical studies with hospitals and obtain data to further train its predictive models.

With what it calls a science-first approach for its technology, FemTherapeutics also intends to target medical and technical journals to showcase its scientific and engineering breakthroughs.

Featured image courtesy FemTherapeutics.

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H|T: The Healthtech Times – FDA approves Elon Musk’s Neuralink for human clinical study

Alex Riehl — Fri, 02 Jun 2023 10:00:27 +0000

The Healthtech Times is a weekly newsletter covering healthtech news from Canada and around the globe.

Subscribe to H|T using the form at the bottom of this page to ensure you don’t miss out on the most important healthtech news every week!

AbCellera receives $300 million in combined government funding for biotech campus (BETAKIT)

Patient21, a digital healthcare startup with brick-and-mortar clinics, raises $108M to grow beyond Germany (TECHCRUNCH)

Founded out of Berlin in 2019, Patient21’s platform spans pretty much the whole patient cycle, from online bookings through digital case histories, check-ins, billing, insurance and more.

Patient21 had previously raised around €66 million ($71 million) in funding, and with its fresh cash injection it said that it plans to grow its software and expand beyond Germany.

BenchSci closes $95-million CAD Series D to expand AI drug-discovery platform (BETAKIT)

Toronto-based BenchSci, which helps pharmaceutical firms accelerate research and development using artificial intelligence, has secured $95 million CAD in Series D funding.

Elon Musk’s brain implant company Neuralink announces FDA approval of in-human clinical study (CNBC)

Neuralink, the neurotech startup co-founded by Elon Musk, announced Thursday it has received approval from the Food and Drug Administration to conduct its first in-human clinical study.

No brain-computer interface company has managed to clinch the FDA’s final seal of approval. But by receiving the go-ahead for a study with human patients, Neuralink is one step closer to market.

Evaluating UCP and NDP plans for tech as Alberta’s election day approaches (BETAKIT)

Advance polling for the 2023 Alberta general election has already begun. What’s on the table for the province’s tech sector?

Here's what Canadian tech can expect from the United Conservative Party and New Democratic Party leading up to and following Alberta's provincial election on May 29.

Scoop: FemTec Health shutters (AXIOS)

Women's health startup FemTec Health is out of money and winding down operations, per a letter sent to shareholders.

FemTec's apparent dissolution takes place against a thorny health-tech funding environment that appears to be taking a disproportionate toll on women's health companies.

“There’s a revolution in the wings”: Why Canada’s semiconductor industry needs an overhaul (BETAKIT)

Niraj Mathur, co-founder of Blumind, discusses his experience building a deep-tech company in Canada and why he feels the semiconductor industry is due for an all-out revolution.

BenevolentAI makes deep cuts after midphase flop, laying off 180 and shrinking lab footprint (FIERCE BIOTECH)

BenevolentAI is cutting back its drug development operation in the wake of a midphase flop, laying off up to 180 staff, reducing its lab footprint, pausing some programs and dropping its lead candidate.

The company is restructuring to form two business units: a tech division, which will commercialize AI products including a natural language biomedical querying system, and a drug development wing.

Summer camp for Canadian tech is back: Startupfest returns July 12-14 (BETAKIT)

Startupfest has announced its Big Picture Agenda, highlighting some of the major attractions coming to the Montreal technology festival when it kicks off July 12.

Use this BetaKit-supplied 15 percent discount code for your Startupfest tickets so we can see you in Montreal!

Peloton aims to rebrand as a fitness company for all with a focus on app and tiered subscription pricing (NBC NEWS)

Peloton is launching a new marketing campaign that bills the retailer as a company for anyone, regardless of age, fitness level and income — or whether they shelled out thousands for a pricey piece of equipment.

The relaunch comes along with a new, tiered app strategy that includes an unlimited free membership option (with no credit card required) and levels that cost $12.99 and $24 monthly.

Opinion: Laid-off tech employees are overlooking public service (BETAKIT)

Code For Canada's Dorothy Eng argues that tech professionals would enjoy the challenge of designing solutions for everyone in Canada, not just those who can afford them.

Layoffs hit Nuance after Microsoft acquisition (BOSTON GLOBE)

Nuance Communications, the speech-to-text pioneer bought by Microsoft last year, is cutting jobs as it focuses more narrowly on the health care market.

Employees at Burlington-based Nuance received an e-mail on Friday from chief executive Mark Benjamin notifying them of the cutbacks as part of the continued integration with Microsoft, which paid nearly $20 billion for the company.

Ailing MCI OneHealth divests five clinics in Calgary to Well Health for $2 million (BETAKIT)

In order to support its short-to-medium term operations, Toronto-based healthtech company MCI OneHealth is selling five of its multidisciplinary primary care clinics in Calgary to Well Health for $2 million CAD.

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OSC advisory panel backs stronger regulation of crypto platforms

Charles Mandel — Thu, 01 Jun 2023 18:50:01 +0000

The advisory panel to the Ontario Securities Commission (OSC) delivered a strong message of support for the OSC’s continuing crackdown on crypto assets.

In its 2022 annual report, the OSC’s Investor Advisory Panel said that it continues to believe crypto assets constitute a growing risk for financial consumers.

Binance said the investigation is an extremely broad inquiry into whether the platform may have circumvented Ontario securities law and compliance controls

“The Panel strongly supports the OSC’s commitment to strengthening oversight and enforcement in the crypto asset sector, and has cautioned the OSC against placing the goal of fostering innovation ahead of its central investor protection mandate,” the panel wrote.

The panel’s endorsement came as Binance, the world’s largest crypto trading platform by daily trading volume, filed a document with the Capital Markets Tribunal revealing that the OSC filed a broad investigation order against Binance. The document also included a sweeping summons.

In its document, Binance said the Investigation Order authorizes an extremely broad inquiry into whether Binance may have taken steps to circumvent Ontario securities law and compliance controls. It also asks whether Binance or Binance.com engaged in conduct contrary to Ontario securities law or the public interest, without any limitation.

The summons included a blanket request for “all communications regarding Ontario (or
Canada generally) among directors, officers, employees, contractors, agents and
consultants of Binance Holdings Limited and related entities, including Binance Canada
Capital Markets Inc. since January 1, 2021, without limitation.”

Founded by Changpeng Zhao in 2017, Binance is a cryptocurrency exchange that claims to have amassed over 120 million users globally. In addition to operating its trading platform, its other business lines include an NFT marketplace, its own token, staking services, and a blockchain called Binance Smart Chain, among others.

Binance announced in mid-May that it was pulling out of Canada after new guidance related to stablecoins and investor limits made the Canadian market no longer viable for the crypto-trading platform.

The new restrictions came from the Canadian Securities Administrators (CSA) following the collapse of cryptocurrency exchange FTX.

“Recent insolvencies involving several crypto asset trading platforms highlight the tremendous risks associated with trading crypto assets, particularly when conducted on unregistered platforms based outside of Canada,” CSA chair Stan Magidson, also chair and CEO of the Alberta Securities Commission, said in a statement provided as part of the notice.

The OSC Investor Advisory Panel opined that crypto events during the year, such as the onset of the crypto winter and the FTX collapse further highlighted the need for the OSC to continue focusing on investor protection. The panel said the OSC should also keep increasing its visibility among, and education of, crypto investors.

“Further, innovative, and timely securities regulation is necessary to keep pace with a rapidly shifting investment environment seemingly filled with new and unprecedented risks,” the panel wrote. “We were pleased to see the CSA strengthen its approach to oversight of crypto trading platforms by creating and then expanding requirements for platforms operating in Canada.”

Photo by Alesia Kozik via Pexels

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Over $1 million in cash available for Canadian startups in FinTech, sciences, and more

Charlize Alcaraz — Thu, 01 Jun 2023 18:34:50 +0000

There is $1.6 million up for grabs in cash prizes and grants available to Canadian startups in several industries, including FinTech, applied sciences, and others.

Innovate BC

Academics and companies working on projects in the areas of natural resources and applied sciences can receive up to $300,000 from Innovate BC’s Ignite program to support their research and development efforts. Applications are due by July 4.

Innovate BC is a Crown agency of the British Columbia government that is mandated to fund and deliver programs to support the growth of the innovation economy in the province.

The agency launched the Ignite program in 2016 with funding from the Natural Resources and Applied Sciences Endowment. Funds from the initiative are specifically meant to advance research and commercialization activities in the province.

Eligible projects are required to have a “clearly articulated solution to an existing industry problem,” are beyond proof-of-concept but pre-commercial, and demonstrate the capacity to go to market within three years.

Projects must also secure matching funds from industry or government sources at a ratio of 2:1, with $2 from other sources matched by $1 from the Ignite program.

Last year’s recipients of the funding program include projects managed by Terramera, Daanaa Resolution, and Hydrogen Technology, and Energy Corporation.

Platform Calgary

FinTech startups from across Canada now have the opportunity to compete for three cash prizes that amount to more than $300,000.

This year, Platform Calgary and the Digital Commerce Bank are expanding the Digital Commerce Calgary FinTech award competition to include all FinTech startups based in Canada. The application deadline is June 12.

The competition selects 25 startups to go through a six-week program that involves interactive workshops, leadership panel discussions, coaching, mentorship, and networking opportunities.

The top five startups will have the opportunity to pitch to a panel of judges to compete for up to $300,000 in total prizes. Winners will be unveiled at the award gala in October.

Last year’s award recipients were Fillip and Fleet who took home a combined $310,000 in non-dilutive cash.

Momentum Ventures

Montréal-based Momentum Ventures, the parent company of travel deals sites FlightHub and JustFly, has launched a $1-million prize for entrepreneurs to lead its next startup.

Momentum is a venture studio that has established a number of businesses across several industries including travel and entertainment.

The challenge is open to entrepreneurs across all verticals. According to Momentum CEO Matt Keezer, the purpose of this initiative is to focus on the people, rather than the business ideas. People can submit their applications as of today, through Momentum’s website.

“Ideas are freely available and execution is everything. We’re excited to hear from you, and we’re equally excited to support your ambitions,” Keezer said. Applicants are not required to have a well-formulated business idea, or any idea at all.

To enter the challenge, applicants must provide their personal contact information and a statement that describes their business, background, and aspirations, or make general comments.

Featured image courtesy Unsplash.

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Doormat raises $1.25 million to make real estate legal services easier

Charlize Alcaraz — Thu, 01 Jun 2023 15:41:08 +0000

Toronto-based Doormat, which provides real-estate legal services to facilitate the closing of property purchases and sales, has raised $1.25 million CAD in pre-seed funding.

Alate Partners led the round with participation from The LegalTech Fund and Gambit Partners. Several angel investors also contributed, including former professional hockey player Brayden Irwin, Loopio co-founder Matt York, Creative Niche founder Mandy Gilbert, former Shopify vice-presidents Brandon Chu and Louis Kearns, as well as Willful CEO and co-founder Erin Bury, who joined Doormat as an advisor in March.

Transactions made through Doormat also receive support from the startup’s lawyer and client support team.

According to Doormat, this capital will help grow its team and expand the company’s presence throughout Ontario and beyond.

Doormat is the brainchild of software engineer Robert Saunders, who faced an “antiquated” experience in the property-closing process when he bought his condo.

As a first time home buyer, Saunders said he had to go through endless email chains and was confused by unclear pricing. Traditional real-estate closing services, he claimed, made it difficult to track the state of the transaction in real time, predict the cost of closing services, or monitor documents and communications related to the deal.

“When I purchased my first property, I wasn’t aware that I needed a real-estate lawyer, and once I went through the lengthy process of finding one, I was confused and uncertain about the entire thing,” Saunders said.

With the goal of improving the property closing experience for both buyers and sellers, Saunders set out to build Doormat in 2022. In this mission, he brought on real-estate lawyer Benjamin Berry and entrepreneur Joel Fox as co-founders.

Doormat’s online platform offers a personalized experience where buyers and sellers can communicate and complete their real-estate transactions. It is meant to bring simplicity to the traditionally complex processes in real-estate legal services, designed to help users manage the legal services involved in the closing through one platform.

According to Doormat, every single property transaction made through its platform will also receive support from the startup’s lawyer and client support team. Its lawyers operate under a partner law firm called Doormat Law.

Doormat, which is currently available in Ontario, said this funding will support its plans to expand into British Columbia and Alberta. The startup also intends to hire five to ten people in the next year for roles in engineering, client support, and real-estate law. Doormat currently has a team of four people.

Featured image courtesy Doormat.

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Platformatic secures $3.5 million, launches tech to simplify back-end development for enterprises

Josh Scott — Thu, 01 Jun 2023 13:05:58 +0000

The startup was founded in 2022 by CTO Matteo Collina—the creator of Fastify—and CEO Luca Maraschi, a repeat founder who previously served as CTO of MobileLive, vice-president of engineering at CTO.ai, and chief architect at Telus. Platformatic is headquartered in San Francisco and has an office in Vancouver, where Maraschi is based.

Platformatic aims to ensure that Fastify is the “go-to web framework for Node.js development.”

Backed by a group that includes Palo Alto-based Decibel, Canada’s Panache Ventures, and several angels from the developer and open-source tech community, Platformatic plans to use this funding to expand its platform and grow its team, as the software startup looks to ensure that Fastify is the “go-to web framework for Node.js development.”

After spending years building the same back end “dozens of times” for Node.js applications at scale, Maraschi told BetaKit that he and Collina set out to build a solution to address this issue.

Node.js is an open-source server environment that allows developers to create front-end and back-end applications using JavaScript. According to Platformatic, Fastify is one of the most popular web frameworks within the Node.js ecosystem. Platformatic claims Fastify has more than four million downloads per month, 3x year-over-year growth, and a user base that includes Capital One, Walmart, American Express, and hundreds of other enterprises.

Platformatic’s equity funding round was led by Decibel, with participation from Panache, GitHub founder Tom Preston-Werner, Socket founder and CEO Feross Aboukhadijeh, major Node.js contributor James Snell, and Tier.run founder Jevon MacDonald, among others. Maraschi declined to disclose Platformatic’s valuation or total funding to date.

According to Platformatic, while a new generation of tools focused on simplifying front-end development has emerged—from React, to Next.js, to Vercel—“Little has been done for the back end because it’s a more rigid environment to change.”

According to Maraschi, the current developer experience “is terrible for the back end: repetitive, time-consuming, and complex.”

“It takes weeks to set up even a simple environment,” he added. “Back-end devs are under intense pressure to develop software at lightning speed. They don’t want to spend time doing boring, redundant tasks that feel like a waste of their creative problem-solving skills.”

At the same time, Maraschi argued that modern businesses need to keep “pace with user demands without over-burdening platform engineering teams.” Platformatic aims to help address this issue with its tech.

“As someone who once built a company with a foundation in Node.js, the significance of what Luca and Matteo are creating at Platformatic immediately resonated with me,” Panache general partner Chris Neumann told BetaKit. “The fact that we had firsthand experience with Luca’s work ethic and determination through a prior role at another Panache portfolio company made it easy for us to want to back them.”

As Platformatic expands, the startup intends to grow its footprint in Canada. “With roots as a Canadian company, the Canadian market is of close interest to us,” Maraschi said.

UPDATE (06/01/23): This story was updated to note responses from Platformatic.

Feature image courtesy Platformatic.

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R|T: The Retail Times – Loblaw axes its third-party seller-driven e-commerce marketplace

Alex Riehl — Thu, 01 Jun 2023 10:00:41 +0000

The Retail Times is a weekly newsletter covering retail tech news from Canada and around the globe.

Subscribe to R|T using the form at the bottom of this page to ensure you don’t miss out on the most important retail tech news every week!

Shopify extends point-of-sale hardware to Canadian retailers after initial US launch (BETAKIT)

Shopify is making its point-of-sale hardware solution available to Canada as part of its broader product strategy for both online and offline commerce.

Alibaba Hiring 15,000 People, Pushes Back on Job Cut Reports
(BNN BLOOMBERG)

Alibaba Group Holding Ltd. said it plans to hire 15,000 people this year, pushing back on reports that the Chinese tech firm is laying off employees, as it pursues a six-way split of its operations.

Locorum raises $1.2 million to help local service businesses grow through referrals (BETAKIT)

Locorum, a marketing tech company based in London, Ont., has raised $1.2 million CAD in pre-seed funding as it looks to enter the United States market.

Locorum developed a subscription-based advertising platform that enables business owners to manage referrals online like a targeted marketing campaign.

Pinduoduo earnings indicate a recovering Chinese e-commerce landscape (MODERNRETAIL)

Chinese firm PDD Holdings, the company best known for its Pinduoduo app, reported a 58% year-over-year jump in revenue at its earnings, benefiting from a rebound in China’s consumer sentiment for online shopping.

“There’s a revolution in the wings”: Why Canada’s semiconductor industry needs an overhaul (BETAKIT)

Niraj Mathur, co-founder of Blumind, discusses his experience building a deep-tech company in Canada and why he feels the semiconductor industry is due for an all-out revolution.

Loblaw to axe e-commerce marketplace for third-party sellers
(THE GLOBE AND MAIL)

Loblaw Companies Ltd. is shutting down its e-commerce Marketplace platform for third-party sellers, three and a half years after the retailer launched the broader assortment of products to compete with the likes of Amazon.

Loblaw is not the only Canadian retailer re-evaluating its marketplace strategy: Hudson’s Bay has temporarily suspended its marketplace as it conducts a site audit.

Evaluating UCP and NDP plans for tech as Alberta’s election day approaches (BETAKIT)

Advance polling for the 2023 Alberta general election has already begun. What’s on the table for the province’s tech sector?

Here's what Canadian tech can expect from the United Conservative Party and New Democratic Party leading up to and following Alberta's provincial election on May 29.

Grab Co-Founder Tan Hooi Ling to Exit Her Operational Roles
(BNN BLOOMBERG)

Grab Holdings Ltd. co-founder Tan Hooi Ling is stepping down from her operational roles by the end of the year, more than a decade after she helped start the Singapore-based ride-hailing and food delivery company.

Her exit leaves Chief Executive Officer Anthony Tan’s management team steering the company without its co-founder as it fights to reverse years of losses.

Summer camp for Canadian tech is back: Startupfest returns July 12-14 (BETAKIT)

Startupfest has announced its Big Picture Agenda, highlighting some of the major attractions coming to the Montreal technology festival when it kicks off July 12.

Use this BetaKit-supplied 15 percent discount code for your Startupfest tickets so we can see you in Montreal!

What you need to know about Temu, the online shopping app dominating download charts (CBC)

One thing that sets Temu apart from its competitors is its game-like shopping experience. New and existing users are frequently prompted to participate in flash sales and chance-based games such as spins to receive free items and coupons.

If Temu continues to grow and carve out a larger share of the e-commerce marketplace, it could disrupt the existing ecosystem.

Opinion: Laid-off tech employees are overlooking public service (BETAKIT)

Code For Canada's Dorothy Eng argues that tech professionals would enjoy the challenge of designing solutions for everyone in Canada, not just those who can afford them.

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Shopify facing $130-million lawsuit for alleged attempts to slash post-layoff severance pay

Charlize Alcaraz — Wed, 31 May 2023 20:19:30 +0000

Shopify is facing a $130-million class action lawsuit for allegedly breaching severance pay contracts with recently laid-off employees.

The Canadian retail tech giant has had several mass-termination events since the COVID-19 pandemic. However, this lawsuit filed with the Ontario Superior Court deals with the most recent layoffs in May, which involved Shopify eliminating 20 percent of its global workforce and selling its logistics business to Flexport.

Shopify has had several mass-termination events since the COVID-19 pandemic.

BetaKit has reached out to Shopify for comment. No judgment on the allegations has yet been made in court.

According to Samfiru Tumarkin LLP, the law firm leading the case, Shopify offered severance to approximately 2,000 employees, which would have cost about $150 million.

When the layoffs were initially announced, Shopify said that those who are impacted will receive a minimum of 16 weeks of severance pay, plus a week for every year of tenure at the company.

However, the lawsuit alleges that after people accepted those offers, Shopify did not comply with the agreed-upon terms, with severance amounts reduced by “tens of thousands of dollars.”

Samfiru Tumarkin LLP noted it is rare for employers to go back on termination offers for their former employees, and that legally, what Shopify is alleged to have done would constitute a breach of contract.

Plaintiff Iain Russell, for example, who worked for Shopify for seven years, said he was initially offered more than $88,000. After Russell accepted the package, the Canadian Press reported that Shopify put forward an agreement worth approximately $44,000 in its place, slashing the severance offer by half of its initial amount.

Lior Samfiru, a lawyer involved in the class action, told the Canadian Press that workers received a “vague statement about miscalculating” the severance by way of explanation.

“For many people … the difference is significant,” Samfiru said, noting differences could range between $10,000 to $60,000. “It appears that Shopify took deliberate action to minimize its financial liability, resulting in considerable losses for potentially thousands of people,” he added.

As a downturn continues to sweep the tech sector, an increasing number of companies are being subject to legal proceedings as a result of the way they allegedly handled layoffs.

Over 1,300 individual arbitration cases have been filed against Twitter for similar allegations of breaching severance-pay contracts. The former workers, who were laid off shortly after the Elon Musk takeover in October, said they were promised more compensation than what was finally offered to them in January.

Twitter could face north of $130 million USD in costs to settle the cases that have been filed thus far, Business Insider reported.

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PSG makes investment in Hostaway to expand its vacation-rental software amid travel rebound

Charlize Alcaraz — Wed, 31 May 2023 16:44:25 +0000

Growth equity firm PSG has taken a big bite out of Toronto startup Hostaway, which provides software for managing short-term and vacation rentals. According to the startup, PSG provided Hostaway with $237.7 million CAD ($175 million USD) in growth financing.

However, Hostaway representatives were unwilling to answer basic questions regarding terms of the investment, including whether it was all-primary capital or featured a secondary component. Additionally, sources indicated to BetaKit that PSG acquired a majority ownership stake in Hostaway as part of this transaction. A spokesperson for Hostaway declined to confirm this detail, stating: “All the information that is being shared is in the release.”

Hostaway said proceeds from this round will be used to support its growth trajectory as it looks to cash in on this year’s travel rebound. It plans to grow its headcount and make enhancements to its product.

Hostaway claims it has increased its revenues by more than ten times since 2021.

Founded in 2015 by Marcus Rader, Saber Kordestanchi, and Mikko Nurminen, Hostaway’s platform was created to automate and simplify processes in property management. It allows users to manage all key aspects of their vacation rental business, with capabilities for marketing, communication, analytics reporting, payments, and distribution channels.

Through a two-way API, Hostaway can be integrated into online travel platforms like Airbnb, Booking.com, Expedia, Vrbo, and Tripadvisor.

Hostaway claims to have seen a period of significant growth in recent years, driven by the recovering tourism industry and its accelerating shift to digitizing its operations.

When the COVID-19 pandemic began in 2020, the travel sector shut its doors, ultimately impacting the vacation rental market. This led Hostaway to lay off one third of its staff as revenues dropped by 60 percent, as reported by TechCrunch.

Despite the setback, Hostaway gradually recovered as the rest of the tourism sector reopened during the long recovery period from COVID-19.

A report from the World Travel and Tourism Council found that the industry is set to contribute $162.6 billion to the Canadian economy in 2023, which is an increase of 17 percent from last year. The previous peak was $173.9 billion in 2019.

As it rode through this sector-wide boom, Hostaway claims it has increased its revenues by more than ten times since 2021, alongside “strong profitability.”

Today, Hostaway said its customers collectively manage more than 100,000 properties in over 100 countries. Though its founders are originally from Finland, the company is headquartered in Canada and built its team out of the DMZ, Toronto Metropolitan University’s business incubator.

Hostaway previously raised $1.9 million in seed funding in 2018, which was led by Finland-based venture capital firm Vendep Capital. The startup also received a $75,000 grant in 2016 from the Finnish Funding Agency for Innovation as it prepared for launch.

Per its release, Hostaway noted that its fundraising is the largest round in the vacation rental sector. However several other vacation and short-term rental startups have raised larger rounds. Airbnb, for example, raised $1 billion in a combination of debt and equity in 2020. Canada’s own Sonder raised $210 million USD in 2019, surpassing a $1-billion valuation.

When reached for clarification, a Hostaway spokesperson said: “It’s the largest round in the vacation rental software space. Sonder is an operator and Airbnb is an OTA (online travel agent) so not software companies.”

Featured image courtesy Hostaway.

The post PSG makes investment in Hostaway to expand its vacation-rental software amid travel rebound first appeared on BetaKit.

Report: 2021 VC boom in Canada was short-lived as market resets to pre-pandemic levels

Charlize Alcaraz — Wed, 31 May 2023 11:30:25 +0000

The 2021 venture capital (VC) funding party was short-lived, according to a recent report published by BDC Capital, the investment arm of the Business Development Bank of Canada.

BDC found that the number of VC deals in 2022 dropped by 12 percent year-over-year (YoY), while the total amount invested declined by 34 percent.

Going into 2023, BDC estimates Canadian VCs have $13 billion in “dry powder.”

These findings confirm the end of the “growth at all costs” mindset that led to the record-shattering VC activity in 2021, according to BDC. As the market tightens, it has adopted a renewed focus on “startup start-up profitability, operational efficiency, and a return to more sustainable growth.”

“In the next cycle of venture investing in Canada, resiliency and prudent management of capital will play a key role,” said Jérôme Nycz, executive vice president at BDC Capital.

Return to historic average

After a significant period of growth in 2021, Canadian VC activity declined across several metrics as the market resets to pre-pandemic levels.

The average deal size declined YoY, from $18.8 million in 2021 to $14.2 million in 2022. This still compares well to the median deal sizes in previous years however, as 2020 recorded $9.1 million and 2019 had $11.7 million.

Valuations also took a hit in 2022. There were 23 VC and private equity-backed companies that reached a $1-billion valuation in 2021 for a total of $67 billion. In 2022, that dropped to less than half—10 new unicorns that year, which were collectively worth $22 billion.

The report also found that the overall market decline was most evident within the information and communications technology sector, where 10-year gross internal rates of return dropped by three percentage points YoY.

Median exit values in 2022 fell to $39.5 million, representing a 55 percent decline from the $89.4 million average in 2021. Despite this downward trend, it is also an indication of a return to historic averages as the 2022 median is more aligned with the $31.5 million recorded for 2020 and $43.1 million in 2019.

IPO drought

Canada saw a record-year for IPOs in 2021, with 12 VC-backed firms going public for a total value of $6.5 billion. In 2022, that number shrunk to zero, similar to the drought in 2019.

BDC attributes this change to subdued public market valuations restricting the options of VC-backed companies looking to pursue an exit strategy through the public markets.

One of these options is the use of special purpose acquisition companies (SPACs), which offered a streamlined listing process for companies as an alternative to traditional IPOs.

SPACs became popular in 2021 as an alternative to traditional IPOs. However, as BDC noted, SPACs faced criticism for being structured in a way that could benefit the investors even if they couldn’t execute a favourable deal. Along with other regulatory restrictions, this has made SPACs less attractive.

Since its peak in early 2021, BDC’s findings showed that Canadian SPAC formation has declined by more than 60 percent.

BDC expects VCs to deploy capital at a slow pace as 2023 progresses, despite having an estimated $13 billion in “dry powder,” another term for cash reserves ready to be deployed. This capital will be allocated to follow-ons and new investments in the coming years.

BDC said the continued lag in capital deployment could be due to various reasons such as economic uncertainty and pressure from limited partners to slow the pace of capital calls.

The full report can be found here, which offers more detail on down rounds, foreign investments, and deal sizes by investment stage.

Featured image courtesy BDC.

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A|I: The AI Times – AbCellera and BenchSci secure big funding

Alex Riehl — Wed, 31 May 2023 10:00:13 +0000

The AI Times is a weekly newsletter covering the biggest AI, machine learning, big data, and automation news from around the globe.

If you want to read A|I before anyone else, make sure to subscribe using the form at the bottom of this page.

AbCellera receives $300 million in combined government funding for biotech campus (BETAKIT)

Ex-OpenAI execs raise $450 million for Anthropic, a rival A.I. venture backed by Google (CNBC)

Anthropic, an artificial intelligence startup founded in 2021 by former OpenAI research execs, said it raised $450 million on Tuesday. This marks the largest AI funding round this year since Microsoft’s investment in OpenAI in January, according to PitchBook data.

BenchSci closes $95-million CAD Series D to expand AI drug-discovery platform (BETAKIT)

Toronto-based BenchSci, which helps pharmaceutical firms accelerate research and development using artificial intelligence, has secured $95 million CAD in Series D funding.

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ChatGPT-maker OpenAI says has no plans to leave Europe (REUTERS)

OpenAI has no plans to leave Europe, CEO Sam Altman said on Friday, reversing a threat made earlier last week to leave the region if it becomes too hard to comply with upcoming laws on artificial intelligence.

Altman had previously said the current draft of the EU AI Act was "over-regulating."

Cognosys raises $2-million seed round to create AI personal assistants (BETAKIT)

Artificial intelligence startup Cognosys has secured $2 million CAD in a seed round.

The company, which is headquartered in Vancouver, is creating web-based AI agents that it claims will serve as personal assistants.

AI guru Yoshua Bengio says regulation too slow, warns of 'existential' threats (THE CANADIAN PRESS)

Artificial intelligence pioneer Yoshua Bengio says regulation in Canada is on the right path, but progress is far too sluggish.

He is calling on the federal government to begin rolling out rules immediately against certain threats such as "counterfeiting humans" using AI-driven bots.

“There’s a revolution in the wings”: Why Canada’s semiconductor industry needs an overhaul (BETAKIT)

Niraj Mathur, co-founder of Blumind, discusses his experience building a deep-tech company in Canada and why he feels the semiconductor industry is due for an all-out revolution.

Here’s What Happens When Your Lawyer Uses ChatGPT
(THE NEW YORK TIMES)

When an airline asked a Manhattan federal judge to toss out a lawsuit, the complainant's lawyers vehemently objected, submitting a 10-page brief that cited more than half a dozen relevant court decisions.

There was just one hitch: ChatGPT invented the whole thing.

Evaluating UCP and NDP plans for tech as Alberta’s election day approaches (BETAKIT)

Advance polling for the 2023 Alberta general election has already begun. What’s on the table for the province’s tech sector?

Here's what Canadian tech can expect from the United Conservative Party and New Democratic Party leading up to and following Alberta's provincial election on May 29.

Paradigm broadening crypto-only focus to areas including AI
(THE BLOCK)

Crypto venture capital firm Paradigm, one of the most established and active players in the space, is going beyond just blockchain and highlighting a focus on a broader array of "frontier tech" that includes artificial intelligence.

Summer camp for Canadian tech is back:
Startupfest returns July 12-14 (BETAKIT)

Startupfest has announced its Big Picture Agenda, highlighting some of the major attractions coming to the Montreal technology festival when it kicks off July 12.

Use this BetaKit-supplied 15 percent discount code for your Startupfest tickets so we can see you in Montreal!

How Microsoft Swallowed Its Pride to Make a Massive Bet on OpenAI (THE INFORMATION)

Last December, Microsoft CEO Satya Nadella demanded to know how OpenAI had managed to surpass the capabilities of the AI project Microsoft’s 1,500-person research team had been working on for decades.

“OpenAI built this with 250 people,” Nadella said. “Why do we have Microsoft Research at all?”

Opinion: Laid-off tech employees are overlooking public service (BETAKIT)

Code For Canada's Dorothy Eng argues that tech professionals would enjoy the challenge of designing solutions for everyone in Canada, not just those who can afford them.

More Big Money For AI: Insider Raises $105M (CRUNCHBASE)

A day after investors flooded $700 million into two AI startups — Builder.ai and Anthropic — Turkey-based AI marketing platform Insider locked up another $105 million.

Insider offers a platform that allows its more than 1,200 customers to connect customer data across channels and systems, predict future behavior with an AI-enhanced engine, and provides an individualized customer experience.

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SAAS NORTH producer reveals new Vancouver-based INNOVATEwest tech conference

Josh Scott — Tue, 30 May 2023 19:38:08 +0000

Vancouver will play home to another tech conference next year, BetaKit has learned.

A newly-launched website shows that Cube Business Media plans to launch a new tech event in the city called INNOVATEwest in 2024.

“The West is lacking a big tent, multi-sector Conference gathering.”
-David Tyldesley, Cube Business Media

Set to take place from April 16 to 17, 2024 at the Vancouver Convention Centre, INNOVATEwest will showcase both industry leaders and established and emerging tech firms, according to the event’s website. The INNOVATEwest website describes the event as “a multi-sector Conference & Exposition at the intersection of Technology & Business Innovation.”

Cube Business Media is the Vancouver conference and tradeshow company behind Canadian tech events like SAAS NORTH, TechExit.io, and Tech Talent North (BetaKit has been a media partner for both SAAS NORTH and TechExit.io).

Asked why now, Tyldesley claimed that within the region, there is a strong demand to “re-awake cross-border initiatives that died off” during the COVID-19 pandemic. “Secondly, people in the west are hungry for their own platform to draw in investment and create awareness about the amazing things happening here.”

“We’re excited to be the ones to bring back a Canadian-made, owned and operated event to the Vancouver Convention Centre,” added Tyldesley.

Vancouver is currently missing a locally-run tech event for an international audience with both BC Tech Summit and Traction on hiatus. Other notable events presently offered within the city include the volunteer-run Vancouver Startup Week, which takes place June 2-9.

Feature image courtesy INNOVATEwest.

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Geoffrey Hinton, Yoshua Bengio warn “risk of extinction from AI” in public letter

Charlize Alcaraz — Tue, 30 May 2023 16:55:54 +0000

Canadian deep learning pioneers Geoffrey Hinton and Yoshua Bengio warn of “risk of extinction” from artificial intelligence (AI) as more industry leaders call to regulate the technology.

Hinton and Bengio are among the 350 executives and researchers working in AI that signed a one-sentence statement calling to mitigate the “risk of extinction” that the technology poses, as first reported by the New York Times.

Despite optimism for his company’s AI development, Altman himself has called for a global regulatory framework.

“Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war,” the full statement reads.

The letter was published by nonprofit organization Center for AI Safety on Tuesday. Other signatories include researchers from the Vector Institute and Mila, as well as professors from universities across Canada. Open AI CEO Sam Altman, Microsoft CTO Kevin Scott, and musician Grimes are also among those who signed the statement.

This brief letter explicitly conveys the severity of concerns surrounding the technology, following a series of previously made statements about the escalating threat they argue AI poses to humanity.

Earlier this month, Hinton quit from his vice president and engineering fellowship position at Google, in order to, he said, speak more freely about the dangers that AI could bring in the near future. He has expressed concern that AI could one day outsmart humans.

The Canadian government has also made several moves to regulate the development and deployment of AI in recent years. Last year, the Canadian government tabled Bill C-27, a wide-ranging privacy legislation that included what would be Canada’s first law regulating high-impact AI systems. The bill made it to its second reading at the House of Commons in March.

Bengio has called the progress on this legislation sluggish, however, as AI applications are increasingly being adopted in large scales. He is calling on the federal government to immediately roll out rules against certain threats such as “counterfeiting humans” using AI-powered bots.

Bengio also signed another open letter in March that called for a six-month pause on training AI systems that are more powerful than GPT-4, the latest large-language model created by OpenAI.

Despite optimism for his company’s AI research and development, Altman himself has called for some form of global regulatory framework to protect against “the most serious downside cases.”

In recent weeks, Altman stopped by Toronto to kick off his five-week trip around the world. When BetaKit editor-in-chief Douglas Soltys asked Altman about the level of responsibility he feels to mitigate those risks from AI, he said: “If we get this wrong, it’s very, very bad.”

In a blog post published last week, Altman and two other OpenAI executives also proposed several ways to responsibly manage AI. Among their list of recommendations, they expressed support for rules that would require producers of large AI models to register for a government-issued licence.

A number of other leaders in the AI space have expressed support for the need to regulate AI as it continues to be developed. The point of contention, however, is the doomsaying associated with the technology.

AltaML co-founder Nicole Janssen told BetaKit that while the Edmonton-based AI company “agrees in principle” with the statement, none of its members have signed it, as it finds “the wording to be overly alarmist and fear-mongering in nature, which in turn weakens the message on such an important topic.”

Featured image courtesy Mila.

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Communications startup Vrify secures $6-million Series A to help attract mining investment

Charles Mandel — Tue, 30 May 2023 11:00:22 +0000

Vrify, a mining communications startup, has announced a $6-million Series A raise that the company hopes will drive market expansion and updates to its technology platform.

Mining companies use Vrify’s 3D visualization technology and 360-degree mining site virtual tours to refine communications and help attract and secure investments.

Vrify creates 3D visualization technology and 360-degree mining site virtual tours

RCF Jolimont Innovation and Beedie Capital led the round, with participation from Tiny. The deal closed in May.

Vrify, which is based in Vancouver, serves over 130 clients across 70 countries, including mineral exploration companies Southern Cross Gold Ltd and Integra Resources, as well as major mining companies Teck and Kinross Gold.

Vrify CEO and founder Steve de Jong said the startup plans to explore artificial intelligence (AI) applications to increase efficiency for users.

As well, Vrify intends to launch what it claims would be a first-of-its-kind communication course for mining professionals. The course would highlight best practices for securing investment and guide users on how to get the most out of Vrify’s tools.

Founded in 2017, the startup currently has a staff of 60. It plans to hire for a number of roles, expanding the team’s size by 25 percent over the next year to approximately 75. Vrify is looking to expand in the areas of web development, particularly for those with 3D experience; AI, sales, and digital marketing.

Charles Gillies, director of RCF Jolimont, called Vrify’s collaboration and visualization tools easy to use, and said they are leading to significant improvements in collaboration and productive meetings.

“The tool will reduce costs, and improve understanding across the mining industry. I look forward to joining the [Vrify] Board,” Gillies said.

Vrify previously raised $13 million CAD with a number of strategic industry partners early on to help fund research and development. De Jong said the revenue model is to offer software-as-a-service (SaaS) on a business-to-business (B2B) basis, with an enterprise component.

With the mining sector valued at $156 billion CAD, Vrify and its investors want to modernize the mining industry through technology, and capitalize on a growing market opportunity, according to de Jong.

“Vrify is on a mission to set a new standard for the way information is shared across the entire mining ecosystem, making mining investments more accessible to a wide variety of potential investors,” de Jong added. “The raise will help us redefine how deals are shared, understood, and secured through our best-in-class suite of communication tools.”

Image courtesy of Vrify

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Ex-Panache, ScaleUp partners team up to launch new early-stage VC fund CMD Capital

Josh Scott — Tue, 30 May 2023 10:00:09 +0000

Long-time Canadian technology startup investors Matt Roberts and David Dufresne have teamed up to launch their own fund at a time when early-stage investment in Canada’s tech sector is needed more than ever.

The pair, who have been working in the venture capital (VC) industry since around the time of the dot-com crash, has backed a wide range of Canadian tech startups through VC firms like Panache Ventures, BDC Capital, and ScaleUp Ventures. In the process, Dufresne and Roberts have navigated a variety of different tech market cycles, from the 2008 financial crisis to the VC funding boom of 2021.

“We won’t pretend to fix the whole problem,” said Dufresne. “We’re two guys that have experience that know what we’re going to do. We’ve seen multiple cycles, and we know we can do a good job.”
– David Dufresne

Now, as Canadian tech stares down the barrel of another challenging macroeconomic period that has seen other investors step back and could entail a sector-wide shakeout, Roberts and Dufresne have launched their own early-stage VC firm, CMD Capital. The pair are joined by RenoRun and Fasken alumnus Gabrielle Paris as principal.

In an exclusive interview with BetaKit, Dufresne and Roberts laid out their plans for CMD (pronounced “Command”) Capital, the seed-stage lead investor market gap they hope to help fill, and why they feel their experience and expertise make them the right folks for the job at the right time.

Split between Toronto and Montréal, CMD Capital aims to raise between $50 million to $75 million CAD from limited partners (LPs) to lead and price rounds in startups that use artificial intelligence (AI) to solve problems across the B2B and enterprise sectors. According to Roberts, the firm has generated “lots of verbal interest” from prospective LPs but does not yet have any committed capital.

As CMD Capital co-founders and general partners (GPs), Dufresne and Roberts intend to stick to their generalist, early-stage investment roots, while also focusing on pre-seed and seed-stage firms leveraging AI in interesting ways. The VC firm has begun the fundraising process and hopes to reach a first close by the end of 2023.

As market conditions have deteriorated, seed-stage investment has fallen, and company creation has dropped, Dufresne and Roberts said they honed in on one particular but important problem—Canada’s dearth of pre-seed and seed round lead investors.

“Ontario and Canada have lost their early-stage lead cheques, or people who focus consistently on that space,” Roberts argued.

“We won’t pretend to fix the whole problem,” said Dufresne. “We’re two guys that have experience that know what we’re going to do. We’ve seen multiple cycles, and we know we can do a good job.”

Canada’s tech sector is currently in the midst of the “survival-of-the-fittest” part of the cycle. As interest rates have risen, fundraising has become much more difficult, and many firms have executed deep staff cuts to preserve cash, sought bridge financing at onerous terms, sold for pennies on the dollar, or closed up shop entirely.

However, seed-stage investment levels in Canada have been an issue for at least a few years now. As Canada’s tech ecosystem has matured, seed funding has remained low, failing to keep pace with increases in VC financing totals and deal counts at later stages. As Roberts previously told BetaKit, amid the downturn, seed-stage fundraising has become particularly challenging for local companies in the last few months. These conditions have also contributed to a decline in company creation.

While lots of Canadian VC firms play in the seed stage, few focus primarily on it and lead rounds, Roberts added. “Those founders are having a harder and harder time finding someone who will lead the round for them,” he said. “It becomes almost like the same conversation over and over.” Roberts told BetaKit that many entrepreneurs have secured verbal commitments but no cash or lead investor willing to perform the necessary due diligence.

Dufresne noted that a variety of factors have contributed to this state of play. Some Canadian tech investors that previously focused on seed startups have moved up the food chain to later stages, while others have joined the sidelines or disappeared altogether.

Though an abundance of relatively new, early-stage investment firms currently exist in Canada, many are solo GPs or write only small cheques and aren’t positioned to lead rounds, added Dufresne, who claimed that at the angel level, things have also slowed down recently as public market conditions have worsened.

Speaking about the overall state of the Canadian tech funding market today, Dufresne said, “There’s this slowness and lack of momentum everywhere in the value chain.” As interest rates have increased, public tech stocks have tanked, and startup investment and valuations have fallen precipitously.

Canada’s lack of pre-seed and seed-focused investors, which some have argued has been fed in part by the country’s shortage of risk-taking LPs, has forced many Canadian tech startups to turn south of the border for funding. Meanwhile, as BetaKit has reported, deteriorating economic conditions have made it more difficult to raise new venture funds, and fuelled liquidity issues for some existing LPs and VCs. The latter has fuelled an environment during which companies that thought they had closed rounds have never seen funds materialize or be clawed back.

“Ontario and Canada have lost their early-stage lead cheques.”
– Matt Roberts

Lead investors play an important role in bringing startup funding rounds together. They also help founders and existing investors navigate future rounds, which in today’s environment often come with more structure and stringent deal terms.

“As the terms in the Series A, Series B, and Series C [stages] become a little bit more onerous, you want someone who has sat at the table to provide that sort of protection for the existing shareholders and mentorship for the founders as they spend the money they’ve raised,” said Roberts. “That’s what we keep hearing in the market.”

Though early-stage tech startup valuations have since fallen from bull-market highs, Roberts said that today, they are “still not rational enough” at certain stages. According to Roberts, a “disconnect” exists between what the pre-seed financing market will bear in terms of pricing and investment, and what investors are willing to invest at in the Series A stage.

“That’s the market problem,” he said. “That’s not going to last—one of those is going to break.”

Feature image courtesy CMD Capital.

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S|W: The SaaS Weekly – Microsoft launches Fabric, mCloud looks to go private

Alex Riehl — Tue, 30 May 2023 09:59:11 +0000

The SaaS Weekly is a weekly newsletter covering major SaaS news from Canada and around the globe.

Subscribe to S|W using the form at the bottom of this page to ensure you don’t miss out on the most important SaaS news every week!

Novisto closes $27-million CAD Series B to help companies improve their ESG reporting (BETAKIT)

Montréal-based Novisto, which sells environmental, social, and governance (ESG) data-management software, has closed $27 million CAD ($20 million USD) in Series B funding to scale its platform.

ESG is a framework used to measure an organization’s business practices and performance from a social and sustainability perspective.

Meta conducts yet another round of layoffs (TECHCRUNCH)

Meta is waging its latest round of layoffs on Wednesday, estimated to impact about 6,000 people. These cuts are part of the company’s so-called “Year of Efficiency,” in which Meta is being massively restructured to save money and flatten the organization structure.

In total, about 21,000 people have lost their jobs at Meta, reducing the company’s global headcount by about a quarter since November.

As Nasdaq delisting looms, asset management firm mCloud looks to go private (BETAKIT)

With tightening equity markets, low-volume trading, and other macroeconomic factors, Calgary-based cloud service provider mCloud has explored the option of going private to navigate the downturn.

Facebook Parent Meta Agrees to Sell Giphy for $53 Million on Regulator’s Order (THE WALL STREET JOURNAL)

Shutterstock on Tuesday said it agreed to buy Giphy from Facebook parent Meta Platforms for $53 million in net cash, ending a yearslong legal battle that forced the sale of the social-media animated-images company.

Meta bought the social-media animated-images company for $315 million in 2020.

Spellbook, formerly Rally, raises $10.9 million to automate legal contracts using generative AI (BETAKIT)

The Toronto legaltech startup Rally has raised $10.9 million and rebranded to Spellbook as it joins the wave of tech startups incorporating generative artificial intelligence technology into their products.

Exclusive: Francisco Partners, TPG end talks to buy New Relic (REUTERS)

Private equity firms Francisco Partners and TPG Inc have ended talks to acquire observability software company New Relic Inc. The firms reportedly failed to secure enough debt financing and could not meet the business software company's valuation expectations.

“There’s a revolution in the wings”: Why Canada’s semiconductor industry needs an overhaul (BETAKIT)

Niraj Mathur, co-founder of Blumind, discusses his experience building a deep-tech company in Canada and why he feels the semiconductor industry is due for an all-out revolution.

Snowflake shares plunge 12% on guidance miss, acquisition of search startup Neeva (CNBC)

Shares of cloud data platform provider Snowflake slid more than 12% in extended trading on Wednesday after the company issued weak guidance in its earnings report and said it will acquire search startup Neeva for an undisclosed amount.

Evaluating UCP and NDP plans for tech as Alberta’s election day approaches (BETAKIT)

Advance polling for the 2023 Alberta general election has already begun. What’s on the table for the province’s tech sector?

Here's what Canadian tech can expect from the United Conservative Party and New Democratic Party leading up to and following Alberta's provincial election on May 29.

TikTok Will ‘Soon’ Grant Oracle Full Access to Code, Algorithm
(BNN BLOOMBERG)

TikTok will “soon” grant Oracle Corp. full access to its source code, algorithm and content-moderation material as part of efforts to alleviate national security concerns about the app.

The work is part of TikTok’s Project Texas, a plan to cordon off US users’ data and allow its technology to be reviewed by partners like Oracle to assess security risks.

Locorum raises $1.2 million to help local service businesses grow through referrals (BETAKIT)

Locorum, a marketing tech company based in London, Ont., has raised $1.2 million CAD in pre-seed funding as it looks to enter the United States market.

Locorum developed a subscription-based advertising platform that enables business owners to manage referrals online like a targeted marketing campaign.

Microsoft launches Fabric, a new end-to-end data and analytics platform (TECHCRUNCH)

Microsoft today launched Microsoft Fabric, a new end-to-end data and analytics platform (not to be confused with Azure Service Fabric).

The new platform includes everything from integration tools, a Spark-based data engineering platform, a real-time analytics platform, and an easy-to-use visualization and AI-based analytics tool.

Summer camp for Canadian tech is back:
Startupfest returns July 12-14 (BETAKIT)

Startupfest has announced its Big Picture Agenda, highlighting some of the major attractions coming to the Montreal technology festival when it kicks off July 12.

Use this BetaKit-supplied 15 percent discount code for your Startupfest tickets so we can see you in Montreal!

Wingmate secures $1 million CAD to market and sell its lead-generation app (BETAKIT)

Wingmate provides frontline staff such as delivery drivers with an app that allows them to capture sales leads out in the field. When they share leads back to their corporate offices, they earn an incentive.

“We make sales and service a team sport,” CEO Matt Leuschner said.

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Saskatoon startups SolusGuard, BetterCart win a combined $75,000 at Uniting the Prairies 2023

Charlize Alcaraz — Mon, 29 May 2023 18:38:33 +0000

Two startups based in Saskatoon won a combined $75,000 in investment prizes at this year’s Uniting the Prairies (UP) conference.

At UP’s pitch competitions last week, SolusGuard took home $50,000 from The Firehood, an angel group dedicated to women-led tech innovations. BetterCart Analytics received $25,000 from the UP angel syndicate, which is powered by Alberta-based tech hub Startup TNT.

SolusGuard was founded by Serese Selanders, who noticed a lack of options for safety alert devices for her father. In her mission of creating a better personal safety alarm, Selanders established SolusGuard in 2019.

UP gathered 75 investors, 100 startups, and over 300 community members this year.

Since then, SolusGuard has built a suite of wearable hardware and app solutions for work safety, targeting businesses that have employees who work alone or at risk. Its solutions can be customized to various industries, including property management, security, and healthcare.

SolusGuard’s products include panic alert devices, check-in software, COVID-19 contact tracing, and others. The startup said its platform is currently used by a number of businesses and government agencies across Canada and the United States, including Corrections Canada.

Per Crunchbase data, SolusGuard reportedly raised an undisclosed amount of seed and pre-seed funding in 2021 and 2019, respectively. The startup said this investment from The Firehood will support its focus on enterprise sales.

Founded in 2020 by Melanie Morrison, BetterCart provides price-analytics software for the grocery industry, powered by artificial intelligence.

BetterCart started out as a price-comparison app for consumers where people could search for grocery items and find stores that offer those same products for the lowest price.

In 2021, BetterCart transitioned to a B2B price analytics and competitive intelligence platform to provide retailers and manufacturers with deep insights into their industry, market, and competitors’ pricing.

According to BetterCart, it has over five billion product records in its “data lake” and imports 38 million new product records weekly from over 3,600 individual stores and 25 retail chains.

BetterCart also previously secured funding from its participation in Innovation Saskatchewan’s MIST program.

These investment prizes are new for this year’s UP installation, which is organized by Saskatchewan tech hub Co.Labs.

This year, UP gathered 75 investors, 100 startups, and over 300 community members from the Canadian Prairies (Alberta, Saskatchewan, Manitoba) to showcase the progress and achievements from the region.

In addition to the pitch competitions, UP also held presentations with a lineup of notable leaders in the tech community. Speakers included Nicoya CEO Colin Calvert, Vendasta COO Jacqueline Cook, as well as Will Gadd, a prominent Canadian athlete in extreme sports like ice climbing, paragliding, and mountaineering.

Featured image courtesy Uniting the Prairies.

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Picketa raises $1.4 million CAD to help farmers analyze plant tissue in real time

Charlize Alcaraz — Mon, 29 May 2023 15:38:19 +0000

Fredericton agtech startup Picketa Systems, which develops technology for plant tissue analysis, has raised a $1.4-million seed round.

The New Brunswick Innovation Foundation, an independent non-profit, led the funding, with contributions from a number of investors that focus on the agricultural sector such as Tall Grass Ventures, Emmertech, and Koan Capital. Desjardins Group, as well as members from angel groups East Valley Ventures and Startup TNT, also participated.

Picketa said it plans to deploy 10 units of its technology across Canada and the United Kingdom.

Tissue testing allows farmers to gain insight into how their crops are absorbing and using nutrients. However, the traditional method can be time-consuming.

Typically, plant tissue testing is done manually by people. The workers would have to retrieve samples from at least 20 different locations in the field, collect the leaves of each plant, then ship them off to a laboratory.

Picketa Systems’ technology was designed to help agronomists and other agricultural professionals integrate real-time plant tissue analysis into their workflows, which could reduce costs and time spent. The startup said it built its solution collaboratively with farmers in New Brunswick and Prince Edward Island.

Plant tissue still needs to be collected by hand with Picketa’s platform. However, its testing hardware allows users to process the data on site, eliminating the need for a third-party laboratory, which normally has longer turnaround times for agricultural analyses. The data collected and analysis results would be provided by Picketa’s web platform.

This application of precision agriculture, which refers to a tech-based farming strategy to monitor variability in crop fields, can reduce nitrous oxide and other greenhouse-gas emissions, according to Picketa.

As the demand for food continues to grow, producers are increasingly relying on agricultural testing technologies in hopes of maximizing their output. Rising at a 6 percent compound annual growth rate, the global market for these products is expected to surpass a valuation of $1.26 billion USD by 2032, according to a research report by Facts and Factors.

There are several Canadian tech startups that offer testing technologies for soil, including ChrysaLabs, Terramera, and Croptimistic. However, it appears that real-time analysis for plant tissues in Canada is still in its infancy, with Picketa looking to carve out this space for itself.

Picketa’s platform currently supports potato farming, with plans to extend the technology to other crops. Picketa CEO Xavier Hébert-Couturier said the company is already expanding trials to include crops like corn, onions, carrots, and blueberries.

With this funding, Picketa said it plans to deploy 10 units of its technology across Canada and the United Kingdom. It has raised $1.8 million CAD in total funding to date, including a $300,000 CAD pre-seed investment round in 2022.

Featured image courtesy Picketa Systems.

The post Picketa raises $1.4 million CAD to help farmers analyze plant tissue in real time first appeared on BetaKit.

F|T: The FinTech Times – Now in Canada: Hiive’s VC secondary trading platform

Alex Riehl — Mon, 29 May 2023 10:00:58 +0000

With regulatory approval, Hiive launches VC secondary trading platform in Canada (BETAKIT)

Vancouver-based FinTech startup Hiive has rolled out its venture capital secondary marketplace to Canadians after announcing it has received registration across Canada as an exempt market dealer.

QED closes on $925M to back fintech startups globally (TECHCRUNCH)

QED Investors announced the closing of two new funds totaling $925 million, capital that it will be using to back early-stage financial technology startups, as well as growth rounds for later stage companies.

Evaluating UCP and NDP plans for tech as Alberta’s election day approaches (BETAKIT)

Advance polling for the 2023 Alberta general election has already begun. What’s on the table for the province’s tech sector?

Here's what Canadian tech can expect from the United Conservative Party and New Democratic Party leading up to and following Alberta's provincial election on May 29.

POWERED BY: RBC CAPITAL MARKETS2023 Canadian Private Technology Conference

Hosted by RBC Capital Markets.

After an explosive period of record growth and investment activity in 2022, there were early signs last year that the technology sector was veering in a different direction. A confluence of geopolitical tensions and economic pressures drove market volatility throughout the year, with 2022 closing on an ambivalent note.

What does this year have in store for the Canadian Technology sector? Find out at our 2023 Private Technology Conference, which will feature inspirational keynotes, fireside chats and panels on emerging and disruptive technology.

Find out more.

With Binance's exit from Canada, OSC head says crypto crackdown has settled the big issues (THE LOGIC)

Binance was the last major international platform to either withdraw from the country or sign an agreement to follow certain rules while pursuing registration, with no more big-name crypto firms operating in a regulatory grey area. In an interview with The Logic, Ontario Securities Commission CEO Grant Vingoe said he feels regulators have reached an inflection point in their crackdown on the sector.

Summer camp for Canadian tech is back:
Startupfest returns July 12-14 (BETAKIT)

Startupfest has announced its Big Picture Agenda, highlighting some of the major attractions coming to the Montreal technology festival when it kicks off July 12.

Use this BetaKit-supplied 15 percent discount code for your Startupfest tickets so we can see you in Montreal!

Paradigm broadening crypto-only focus to areas including AI
(THE BLOCK)

“There’s a revolution in the wings”: Why Canada’s semiconductor industry needs an overhaul (BETAKIT)

Niraj Mathur, co-founder of Blumind, discusses his experience building a deep-tech company in Canada and why he feels the semiconductor industry is due for an all-out revolution.

Securities Commissions Share 18-point Global Crypto Framework (BLOCKWORKS)

As part of the framework, the International Organization of Securities Commissions proposed 18 crypto policy recommendations in a recent consultation report. The recommendations cover six key areas: conflicts of interest, market manipulation, cross-border risks, custody and asset protection, operational and technological risk and retail access.

Opinion: Laid-off tech employees are overlooking public service (BETAKIT)

Code For Canada's Dorothy Eng argues that tech professionals would enjoy the challenge of designing solutions for everyone in Canada, not just those who can afford them.

Sam Altman’s Crypto Project Worldcoin Raises $115M, Led By Blockchain Capital (COINDESK)

Co-founded by OpenAI CEO Sam Altman, Worldcoin's nine-figure funding round is a rare sight during an extended crypto bear market that has slowed venture capital investments in the space to a trickle.

The capital will help accelerate research and development and growth efforts on the Worldcoin project and the World App, the first crypto wallet for the Worldcoin ecosystem.

Bloom raises $7 million to make applying for reverse mortgages easier (BETAKIT)

Toronto-based Bloom has raised $7 million in Series A funding CAD to make applying for reverse mortgages easier.

Bloom said its platform has been actively expanding since it launched in 2021. It claims to have extended nearly $100 million CAD to homeowners in Ontario and British Columbia to date.

South African challenger bank TymeBank raises $77.8M from Norrsken22 and Blue Earth Capital (TECHCRUNCH)

South African digital banking platform TymeBank has raised $77.8 million in a pre-Series C round led by African-focused growth-stage fund Norrsken22 and Swiss global impact investment firm Blue Earth Capital.

Launched in February 2019, TymeBank offers a transactional bank account with low monthly fees and a savings product to its customers.

Small business banking platform Vault launches with backing from Google’s Gradient Ventures (BETAKIT)

Vault is the latest Canadian startup looking to make banking easier for small-to-medium-sized businesses, securing $5 million CAD in funding to date.

While Shafik and Aziz see their platform as unique, they are far from the first entrepreneurs who have seen a need to make Canadian banking easier for SMBs.

The post F|T: The FinTech Times – Now in Canada: Hiive’s VC secondary trading platform first appeared on BetaKit.

Canadian startup news of the week (5/28/23)

Alex Riehl — Mon, 29 May 2023 09:00:16 +0000

Welcome to BetaKit’s startup stories of the week! Here, you will find the week’s most important news, features, and editorials published on BetaKit.

If you prefer this update hit your inbox every week, make sure to subscribe to the BetaKit Newsletter using the form at the bottom of this page.

Latest Funding, Acquisitions, and Layoffs

VAN – Cognosys – $2M (read more)
LON – Locorum – $1.2M (read more)
TOR – Spellbook (formerly Rally) – $10.9M (read more)
TOR – Wingmate – $1M (read more)
MTL – Novisto – $27M (read more)

The BetaKit Podcast

A WAKE FOR BUZZFEED, GAWKER, VICE, WITH CANADALAND'S JONATHON GOLDSBIE

“That is a deeply unhealthy way to live and to work and it’s ultimately not a successful way to sustain a publication.”

WHAT’S NEXT FOR SHOPIFY?

“This announcement communicated two things: this thing we’re getting rid of isn’t primary to our mission—it’s a side quest, we don’t actually care about this; and we have a cultural problem at our company with who we’ve hired and what they’re focused on.”

Madeline Stone, retail and e-commerce writer for Business Insider, joins to discuss the future of Shopify’s “main quest” after cutting staff and selling off its logistics division.

Subscribe to B|K: The BetaKit Newsletter

The post Canadian startup news of the week (5/28/23) first appeared on BetaKit.

A wake for BuzzFeed, Gawker, Vice with CANADALAND’s Jonathan Goldsbie

Douglas Soltys — Sun, 28 May 2023 22:31:15 +0000

Digital media publications are dropping left and right these days. BuzzFeed News is gone, Gawker died for the second time, and Vice just filed for bankruptcy.

Now, this isn’t tech news specifically, but it is impacted by tech, with new media startups adopting tech’s VC-fuelled approach to rapid scaling (as well as its batting average for success) and sinking or swimming based upon the priorities of Big Tech’s algorithms.

More pointedly, the podcast you’re consuming is produced by a digital media publication now more than 10 years old that has lived three different lives: first as a Postmedia publication, then relaunched as a Canadian-focused tech publication run by an independent media company, and spun out once again as its own company.

“That is a deeply unhealthy way to live and to work and it’s ultimately not a successful way to sustain a publication.”

So this stuff is of personal and professional interest to me. I have been working in digital media, new media, web media since 2004. The publications that have recently gone under, while not necessarily ones that I aspired to, were certainly peers on what felt like a new frontier.

Well, the problem with frontiers is that you never hit the horizon, and when the sun sets, there is only darkness.

So as the old new way of doing things die off, what will come along to replace them? ChatGPT? Is that what you people want?

I can’t help but think if BetaKit were launched in 2023 rather than 2012 it would have been a Substack, a YouTube channel, and a podcast.

Before we talk more about what comes next, we need to hold a wake for the dead. Joining me to do that is CANADALAND news editor Jonathan Goldsbie—he is familiar with these types of wakes.

Let’s dig in.

Subscribe via: RSS, Apple Podcasts, Spotify, Stitcher, Google Podcasts, YouTube

The BetaKit Podcast is hosted by Douglas Soltys & Rob Kenedi. Edited by Kattie Laur. Sponsored by Goodlawyer.

The post A wake for BuzzFeed, Gawker, Vice with CANADALAND’s Jonathan Goldsbie first appeared on BetaKit.

Three SaaS companies hiring software developers in Canada

Alex Riehl — Fri, 26 May 2023 19:48:27 +0000

With so many moving pieces involved in starting and running a company, building infrastructure like hiring, information management, and more can be a process that takes focus away from growth. This is why so many successful ventures are built on the back of existing software as a service (SaaS) companies that provide ready-to-integrate solutions. Here are just a few SaaS companies hiring software developers in Canada to improve services and help businesses run better. Check out all the organizations recruiting at Jobs.BetaKit for more opportunities.

Autodesk

Autodesk provides software that impacts how the world is built. The architecture, engineering, and construction industries approach planning and design through its popular engineering solutions AutoCAD, Civil 3D, and more. Autodesk is currently looking to add a senior software developer to design, develop, and test features for its applications.

Those who apply to this position should be prepared for a customer-facing role, have four years of hands-on software development experience in Python, Java, Go, or .NET, and must have experience in cloud development.

Autodesk is also hiring a senior machine learning engineer for its artificial intelligence platform geared towards water treatment facilities, and a senior software engineer to join the product analytics team.

You can see all the positions Autodesk has available here .

Ceridian

Ceridian is the quintessential software solution for companies looking to streamline the human resources process. Ceridian’s platform helps companies manage the entire employee lifecycle, from recruiting and onboarding, to paying people and developing their careers. Ceridian provides solutions for organizations of all sizes, from small businesses to global organizations.

Ceridian is looking to fill developer roles at all levels, from temporary interns to a software developer lead. Those who apply to be the software developer lead will usher in the development and modernization of Ceridian’s UI platform, providing technical guidance and expertise in the use of advanced UI technologies. Applicants are expected to have a minimum of seven years of experience in UI development for web applications and a degree in software engineering.

All the software developer roles Ceridian is hiring for can be found here.

OpenText

OpenText is an information management platform that provides dozens of products and services for businesses, from cloud management to automating processes. Its wide range of solutions has led to enterprise partnerships with SaaS leaders such as SAP, Salesforce, and Microsoft.

OpenText is currently looking for a senior software developer to work as part of a software development scrum team to enhance and maintain its multi-tenant SaaS applications. Successful applicants should have a bachelor’s degree in computer science and at least five years of enterprise software development experience.

OpenText is also looking to hire a lead software developer and many more roles, which can be found here.

The post Three SaaS companies hiring software developers in Canada first appeared on BetaKit.

Cognosys raises $2-million seed round to create AI personal assistants

Charles Mandel — Fri, 26 May 2023 18:13:41 +0000

Artificial intelligence (AI) startup Cognosys has secured $2 million CAD in a seed round.

Sangeen Zeb at Google Ventures led the round, with participation from Guillermo Rauch (CEO at Vercel), Amjad Masad (CEO at Replit), Aidan Gomez (CEO at Cohere), Ivan Zhang (CTO at Cohere), and Untapped VC, and managing partner Yohei Nakajima (BabyAGI). The closing date of the round was not disclosed.

Cognosys said it will use the funds to accelerate its growth, expand its team, refine its platform, and enhance its product’s AI capabilities.

Cognosys users set out a goal for their AI agents, which could range from optimizing workflows to planning leisure activities

The company, which is headquartered in Vancouver, is creating web-based AI agents that it claims will serve as personal assistants.

The startup said that its product will soon support integration with several generative AI tools, including Google’s PaLM API, Cohere’s API, and Anthropic’s Claude models.

With Cognosys, users set out a goal for their AI agents, which could range from optimizing workflows to planning leisure activities. The goal can be customized with additional tasks. The output can be generated in various formats, from formatted code, tables, or text, and can be easily copied or downloaded for further use.

While OpenAI’s ChatGPT specializes in producing text and dialogue that imitates human interaction, Cognosys claims that its tool tailors a plan to meet users’ specific goals, and creates a series of agents each responsible for completing particular tasks. The startup said its AI tool not only offers solutions, but shows the computing processes leading to that objective.

Cognosys is rolling out its tech at a time when the AI space is fraught with concerns over the speed and pace of its innovation. In late May, a Member of Parliament and a Canadian Senator concerned with the pace of technology versus that of regulation announced they are forming a parliamentary caucus on emerging technology. AI was one of the technologies they singled out for examination.

As well, recent open letters from the likes of Yoshua Bengio, the co-founder of Montréal-based Mila, along with hundreds of tech leaders, AI researchers, policymakers and other concerned parties, have urged all AI labs to agree to a six-month pause on training systems that are more powerful than GPT-4.

Cognosys is also working with some of the headier AI startups in the space. Toronto-based startup Cohere is among the first four companies to receive funding from Salesforce Ventures’ newly-launched $250 million fund as part of a broader play into generative AI.

Co-founded by Aidan Gomez (CEO), Ivan Zhang, and Nick Frosst in 2019, Cohere provides access to large-language models and natural language processing (NLP) tools through one API. Its platform can be used to generate or analyze text to do things like write text, moderate content, classify data, and extract information.

The post Cognosys raises $2-million seed round to create AI personal assistants first appeared on BetaKit.

Summer camp for Canadian tech is back: Startupfest returns July 12-14

Charles Mandel — Fri, 26 May 2023 17:42:48 +0000

Startupfest has announced its Big Picture Agenda, highlighting some of the major attractions coming to the Montreal technology festival when it kicks off July 12.

The festival’s tent village will return. More than 20 tents will hold an accelerator zone, demo spaces, and the festival’s “famous Grandmother judges,” who in the past have included the mother of Shopify president Harley Finkelstein, among others.

BetaKit is proud to announce it is now a Startupfest media partner.

In 2013, the grandmothers picked Onavo, a company acquired by Facebook for over $150 million USD. And in 2019, the grandmothers considered more than 100 pitches in 36 hours.

“Our esteemed panel of Grandmother Judges are a Startupfest favourite with an unbeatable track record—and they don’t suffer fools,” the festival noted.

The festival runs from July 12 to July 14, and this year it is introducing new formats for networking and new premium fests prior to Startupfest’s kickoff.

“We’ve assembled experts in startups and technology to deliver hard facts and hard truths about what lays in store for technology startups through a series of augmented talks,” the festival stated in a release.

Speakers at Startupfest will include Finkelstein, Magaly Charbonneau, a partner at Inovia Capital, Shambhavi Mishra, a VC with Antler, and Michelle Yu, an investor with Georgian.

Startupfest is also offering curated matchmaking for startups and investors, powered by Regina-based tech incubator Cultivator. This invite-only half-day event matches top-tier VCs with high-growth startup founders. Startups get a focused, one-on-one, 20-minute discussion on fundraising, challenges, strategies, and direction. Startups interested in participating can apply here and high-value investors looking to fill the few remaining spots should fill out this questionnaire.

Premium Fests

The premium fests at the festival include FundFest, AcceleratorFest, and OceanFest, all events that require prospective attendees to submit an application, or, in the case of the already booked-up AcceleratorFest, join a waitlist.

Returning this year among the premium events is the BDC Women in Technology Boot Camp. Hosted by BDC Capital’s Women in Technology Fund and the Thrive Venture Fund, this half-day event looks to connect women founders and leaders of technology companies with the resources they need to grow their businesses.

The event is designed for high-tech companies with at least one woman as a founder or leader. Startupfest promises the event will connect pre-seed and seed-stage tech startups with peers, investors, and organizations to help with scaling up.

FundFest, presented by Pender Ventures in collaboration with RBCx, KRB Law, and BNC, is a half-day conference for venture capital investors. FundFest looks at raising funds, deploying capital and delivering returns. Panels and keynotes will touch on all three areas, with speakers representing both the venture capital investor and fund investor viewpoint, and providing perspectives relevant to Canadian VC and the broader North American context.

OceanFest is an opportunity to explore a fast growing technology space that is forecasted to grow fivefold by 2035

In partnership with MAIN, AcceleratorFest is back for a 10th edition as a forum for discussions on best practices and challenges faced by those running acceleration programs. AcceleratorFest offers a specialized, premium event, designed for the directors, program managers, and community managers who drive acceleration programs across the globe. The program is only open to the directors, managing directors, and community managers of accelerator programs.

Innovators can also immerse themselves in OceanFest, an opportunity to explore a fast growing technology space that is forecasted to grow fivefold by 2035, to an overall value of $220 billion. Investors will discuss how and why to invest in the ocean, along with the opportunities the sector has to offer.

Stay tuned for more Startupfest announcements

That’s not all that is taking place at Startupfest this year. Attendees can expect more speakers, innovative approaches to speaker content and, of course, numerous prizes and opportunities for startups across Canada. You’ll be able to find all the forthcoming startupfest announcements right here, as BetaKit is proud to announce it is now a Startupfest media partner.

What role is BetaKit playing at Startupfest this year? You’ll have to stay tuned. For now, use this BetaKit-supplied 15 percent discount code for your Startupfest tickets so we can see you in Montreal!

Image courtesy of StartupFest

The post Summer camp for Canadian tech is back: Startupfest returns July 12-14 first appeared on BetaKit.

Wingmate secures $1 million CAD to market and sell its lead-generation app for frontline staff

Charles Mandel — Fri, 26 May 2023 10:00:37 +0000

A Toronto-based lead-generation and customer relationship management (CRM) startup may be the literal embodiment of the idea that one person’s garbage is another’s gold.

Wingmate, which closed a $1-million CAD round of debt and equity on May 8, began its life as a company called Gopher Leads, which was premised on the idea of having garbage truck drivers send back sales leads to front-office staff.

That startup didn’t fare so well, burning through its investor capital in two years. But in 2018, Matt Leuschner, who was working for that business in marketing, was asked to step in as CEO by the firm’s founder.

The original business idea was to have sanitation workers look for sales leads while out in the field.

In short order, as Leuschner tells it, he rebranded the firm to Wingmate and broadened out the business model. Originally, the plan was to have sanitation workers specifically look for sales leads while out in the field, but Leuschner said he expanded the idea out to other kinds of frontline workers.

Today, Wingmate provides frontline staff such as delivery drivers with an app that allows them to capture sales leads out in the field. When they share leads back to their corporate offices, they earn an incentive.

“We make sales and service a team sport,” Leuschner said.

Soon after the rebrand, Wingmate brought in its first large client, Purolator.

Leuschner told BetaKit that Purolator paid for a full year of service from Wingmate, which “gave us a little fuel in the tank to expand Wingmate into a CRM.” Five years later, Wingmate now employs 50 staff, and, according to Leuschner, has annual recurring revenue of close to $5 million.

The Southern Ontario Fund for Investment and Innovation led Wingmate’s recent funding round, with participation from BDC and an internal investor. Leuschner said Wingmate will put the money toward sales, marketing, and customer success.

In addition to being useful for sales, the app also acts as a simple, mobile CRM solution. Leuschner rhetorically asked why businesses of any type are continuing to spend two hours on data entry at the end of every work day instead of using Wingmate’s app.

“We believe there’s a massive opportunity there when it comes to traditional businesses,” he said, “people-driven businesses, that [have] staff in the field, that have an outside sales team.”

Wingmate’s CRM solution aims to reduce or eliminate time staff spend entering data.

The third service Wingmate provides is inside sales support. So by the time an outside employee such as a delivery driver has sent in a lead, for a new restaurant opening, for instance, a Wingmate employee will have called the new company, reached the decision-maker such as the restaurant’s general manager, determined if there’s a competitor in the sales account, and set up a follow-up appointment, according to Leuschner. If the lead were to pan out, the driver would earn an incentive.

Leuschner said the incentive can be cash right to an employee’s paycheque, or a point system. The incentives are automated and tied into the sale or service cycle payout reporting within the company, he said.

At its core, Leuschner describes Wingmate as a frontline intelligence tool. “It depends on the company and what they are looking for. We see service staff: drivers, routes, technicians using the app to capture new sales leads, upsell, cross-sell, service deficiencies, safety issues, competitor intel and customer insights, etc. It’s as easy as taking a picture.”

The most common type of sales lead would be a neighbouring business they do not service or an up-sell/cross-sell opportunity within an account.

Wingmate claims it has 300 customers, ranging from 10-person small-and-medium businesses, all the way up to large enterprise accounts like Purolator and Sysco Food Services. Revenue is generated using a traditional SaaS model, charging per user per month.

Originally, Wingmate had hoped to close the round months earlier, but like many startups, found investors cautious in the current bear market.

That doesn’t deter Leuschner. He sees opportunity now where others are cutting back. “The opportunity is when Salesforce lays off 10 percent of its staff,” Leuschner said. “The opportunity is when there are gaps being created. Traditionally, they’d say, ‘Oh, we’ll just hire more salespeople,’ but now they’re saying: Maybe we can tap into our frontline staff.”

Leuschner noted that for a large telecommunications company, for instance, its technicians are already in homes and businesses. “They’re speaking to the customer already,” he said. “Why don’t we capture that upsell?”

But, in the original model, why garbage workers? It goes back to Louis Anagnostakos, co-founder of Toronto’s Turtle Island Recycling. GFL Environmental acquired the latter company in 2012, leading Anagnostakos to come up with the idea of starting Gopher Leads in 2015.

Gopher Leads offered a SaaS solution to generate solid leads for businesses. At the time, the platform consisted of a downloadable mobile application for frontline users and a browser-based CRM system for the management and sales agents. Gopher Leads empowered the frontline to generate the best leads for sales — and rewarded them with cash as those leads progressed.

“Whether for waste management or landscaping, Gopher Leads creates an extended sales-team arm with a company’s front line,” read a news release on the startup from 2016.

Back in the present, Leuschner addressed why the startup decided to take on debt rather than equity. He said currently the trend in technology is companies having to scale back because they’ve built their foundation off of investor money in equity.

“Wingmate’s done it a bit differently,” he said. “We’ve built a really strong foundation, and we see this time as an opportunity for growth.”

Image courtesy of Wingmate

The post Wingmate secures $1 million CAD to market and sell its lead-generation app for frontline staff first appeared on BetaKit.

R|T: The Retail Times – Shopify touts checkout conversion rates, ranks merchants

Alex Riehl — Fri, 26 May 2023 09:59:24 +0000

The Retail Times is a weekly newsletter covering retail tech news from Canada and around the globe.

Subscribe to R|T using the form at the bottom of this page to ensure you don’t miss out on the most important retail tech news every week!

Lightspeed Commerce makes gains in fiscal 2023, fourth quarter (BETAKIT)

Despite the better numbers, shareholders are still not pleased with the company’s performance. At presstime, shares in the TSX-listed Lightspeed had fallen by $2.83 CAD to $17.17, not far off of its 52-week low of $17.06.

Fashion Giant Shein Raises $2 Billion but Lowers Valuation by a Third (THE WALL STREET JOURNAL)

Shein, the online fashion company that won over millions of American shoppers during the pandemic, raised $2 billion in its latest fundraising round that values the company at $66 billion, about a third less than a year earlier.

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Tough Commerce raises $2 million to become Shopify for “complex” industries like construction (BETAKIT)

In this mission, the startup has rebranded from Brokrete to Tough Commerce and added former Shopify engineering lead Willem van Bergen as an investor and board member last year.

Some of Tough Commerce’s capabilities include order management, pricing management, logistics, e-ticketing, invoicing, customer portal, AR automation, and real-time delivery.

Restaurant365 gobbles up $135M to supersize its software for the food service industry (TECHCRUNCH)

Restaurant365, which develops all-in-one restaurant management software, announced $135 million in new funding co-led by KKR and L Catterton. Previous backers — specifically ICONIC Growth and Bessemer Venture Partners — are also participating in this round, which brings the total raised by the startup to $288 million.

Mayor Tory’s departure, competing bids, and financial pressure on province and feds place Collision’s future in Canada in doubt (BETAKIT)

While major North American tech conference Collision has privately communicated intentions to extend its Toronto stay by at least another year, no official agreement has been reached, BetaKit has learned. Securing that agreement might be harder than in years past.

The conference has upped its ask to north of $40 million CAD for an extended three-year stay, as five other cities vie to host the conference.

Fanatics buys PointsBet's U.S. business for $150M (AXIOS)

Fanatics, the sports merchandise giant valued at over $30 billion, has reached a deal to acquire the U.S. assets of PointsBet, an online sportsbook operator based in Australia.

The deal brings Fanatics further into the world of online sports betting as it gears up for a potential IPO.

Shopify claims best conversion rates among checkout solutions on the market (BETAKIT)

Shopify claims it has the best percentage of website visitors buying something, or conversion rates, among e-commerce companies that offer checkout solutions, citing a review by a management consulting firm. The Ottawa-based e-commerce giant also recently released its first report on the economic impact of its merchants, which found Canada ranks 12th globally.

TuSimple to lay off 30% of workforce, keep China business (TECHCRUNCH)

TuSimple, the once high-flying autonomous trucks company that went public in 2021, is restructuring and laying off about 30% of its global workforce as it works to preserve cash and stay in business.

The announcement early Thursday comes a week after the company disclosed that it received a delisting notice from the Nasdaq for failing to file its quarterly report on time.

CVCA: Canadian venture capital continues to fall back to pre-pandemic levels (BETAKIT)

While Canadian venture capital investment fell quarter-over-quarter and year-over-year, the amount invested is a return to pre-pandemic levels and sets the time period of 2021 to early 2022 as a potential outlier for Canadian venture capital.

How Inkbox CFO Louise Hucal handled the process of being acquired by a global corporation (BETAKIT)

Louise Hucal has worked in Fortune 500 companies and been involved in multiple M&A deals as an employee. However, pen maker Bic’s acquisition of temporary tattoo startup Inkbox felt more personal.

“We were not in the ‘be acquired’ head space at all at that point in time and were still comfortably funded by our venture partners," Hucal said.

Amazon Overhauls Delivery Network to Dispatch Packages Faster, More Cheaply (THE WALL STREET JOURNAL)

Amazon has upended its vast logistics network to reduce how far packages travel across the U.S. in an effort to get products to customers faster and improve profitability.

The company’s overhaul has cut delivery times, transformed inventory management and altered the search results customers see on its flagship e-commerce website.

Alberta’s tech sector remained resilient in first quarter of 2023 (BETAKIT)

According to briefed.in’s latest report, startups in Alberta raised $225.5 million in the first quarter of 2023. This represents a 30 percent increase in investment from the previous quarter and a 10 percent increase year-over-year.

African B2B e-commerce startup Sabi tops $300M valuation in new funding (TECHCRUNCH)

Sabi, a Lagos-based B2B e-commerce startup providing digital commerce infrastructure to Africa’s informal economy, has raised $38 million in Series B funding at a valuation of $300 million.

Québec attracted more venture funding than any other Canadian region in Q1 2023 (BETAKIT)

Despite seeing a decline in venture funding both quarter-over-quarter and year-over-year, Québec attracted more investment than any other Canadian region in the first quarter of 2023.

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The post R|T: The Retail Times – Shopify touts checkout conversion rates, ranks merchants first appeared on BetaKit.

H|T: The Healthtech Times – FTC signals tougher rules for health companies’ use of data

Alex Riehl — Fri, 26 May 2023 09:59:22 +0000

The Healthtech Times is a weekly newsletter covering healthtech news from Canada and around the globe.

Subscribe to H|T using the form at the bottom of this page to ensure you don’t miss out on the most important healthtech news every week!

Ailing MCI OneHealth divests five clinics in Calgary to Well Health for $2 million (BETAKIT)

FTC signals tougher rules for health companies' use of data (AXIOS)

The Federal Trade Commission issued a warning Thursday about companies' use of consumers’ biometric information such as facial recognition technology, saying it raises "significant consumer privacy and data security concerns."

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Mayor Tory's departure, competing bids, and financial pressure on province and feds place Collision's future in Canada in doubt (BETAKIT)

CEO of Collision Paddy Cosgrave has directly communicated that Collision 2024 will take place in Toronto, four seperate sources told Betakit. However, no official agreement has been reached and it appears it will be more difficult to reach than in previous years.

With an asking price of over $40 million and the loss of John Tory in the Toronto mayor's office, Collision's Canadian future is in limbo.

Insiders say Oracle is crushing morale at $28 billion acquisition Cerner by cutting over 3,000 workers, banning raises, and sidelining its former CEO (INSIDER)

Since buying health IT giant Cerner for about $28 billion, Oracle has halted raises and promotions and laid off thousands of employees in the unit, four current and former employees told Insider.

Between the cuts, wage freezes, and Oracle selling Cerner's buildings in Kansas City — where Cerner has historically been a major employer — morale within the Cerner workforce is "terrible," a former Cerner executive told Insider.

Pfizer Canada partners with Communitech to launch health-focused accelerator program (BETAKIT)

Pfizer Canada has launched the Healthcare Hub, an accelerator program delivered in partnership with Kitchener-Waterloo based Communitech. The hub is specialized in the areas of vaccination tracking, drug shortage planning, women’s health, oncology diagnostics, as well as patient drug coverage and access.

LRVHealth raises $200M to fund the 'second wave' of digital health innovation (FIERCE HEALTHCARE)

Venture capital firm LRVHealth raised $200 million to invest in healthcare startups with a focus on connecting industry incumbents with digital health entrepreneurs.

The fund’s initial investments include Greater Good Health, a company that developed a primary care model centered around nurse practitioners, and KeyCare, a virtual-first care platform built with Epic.

How Inkbox CFO Louise Hucal handled the process of being acquired by a global corporation (BETAKIT)

Louise Hucal has worked in Fortune 500 companies and been involved in multiple M&A deals as an employee. However, pen maker Bic’s acquisition of temporary tattoo startup Inkbox felt more personal.

“We were not in the ‘be acquired’ head space at all at that point in time and were still comfortably funded by our venture partners," Hucal said.

UK court tosses class-action style health data misuse claim against Google DeepMind (TECHCRUNCH)

Google has prevailed against another U.K. class-action style privacy lawsuit after a London court dismissed a lawsuit filed last year against the tech giant and its AI division, DeepMind, which had sought compensation for misuse of NHS patients’ medical records.

The complainant had sought to bring a representative claim on behalf of the approximately 1.6 million individuals whose medical records were — starting in 2015 — passed to DeepMind without their knowledge or consent.

CVCA: Canadian venture capital continues to fall back to pre-pandemic levels (BETAKIT)

Former Facedrive execs to pay fines after misleading news releases (THE GLOBE AND MAIL)

Executives with the startup formerly known as Facedrive Inc. will be banned from serving as public company directors and will pay financial penalties after issuing misleading news releases, the Ontario Securities Commission (OSC) ruled.

The OSC released a statement of allegations earlier this month stating that Facedrive put out contradictory and misleading news releases about TraceSCAN, a COVID-19 contact tracing technology, overstating its capabilities.

Québec attracted more venture funding than any other Canadian region in Q1 2023 (BETAKIT)

Despite seeing a decline in venture funding both quarter-over-quarter and year-over-year, Québec attracted more investment than any other Canadian region in the first quarter of 2023.

Hippocratic is building a large language model for healthcare (TECHCRUNCH)

Hippocratic AI emerged from stealth with a whopping $50 million in seed financing behind it and a valuation in the “triple-digit millions” to build generative AI focused on health care.

Hippocratic isn’t focused on diagnosing, rather the consumer-facing tech is aimed at explaining benefits, providing dietary advice, answering pre-op questions, and other use cases.

Alberta’s tech sector remained resilient in first quarter of 2023 (BETAKIT)

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Spellbook, formerly Rally, raises $10.9 million to automate legal contracts using generative AI

Charlize Alcaraz — Thu, 25 May 2023 20:48:23 +0000

The Toronto legaltech startup Rally has raised $10.9 million as it joins the wave of tech startups incorporating generative artificial intelligence (AI) technology into their products.

Rally initially launched an AI-powered tool in 2022 named Spellbook, which uses OpenAI’s GPT-4 technology to help legal practitioners draft and review contracts. The technology will help make that process up to four times faster, the company claims.

Spellbook claims over 600 legal teams are actively using its platform.

As part of its new focus on developing legal tools powered by AI, Rally is rebranding and adopting Spellbook’s name.

According to the company, this round of funding will support its hiring, expansion, as well as research and development. Spellbook did not disclose further details regarding these plans.

The round was led by Moxxie Ventures, with participation from Thomson Reuters Ventures, Inovia Capital, The LegalTech Fund, Bling Capital, N49P, Concrete Ventures, Good News Ventures, as well as Venture Newfoundland & Labrador, among others.

Matt Mayers, co-founder and chief experience officer at the company, compares Spellbook to a “tailwind for the lawyer,” keeping them in the driver’s seat with an AI assistant to help them complete tasks more quickly.

Spellbook offers other tech-enabled solutions for legal teams such as capabilities for client intake, collaboration, and company management, among others.

Spellbook claims over 600 legal teams are actively using its platform, with an additional 53,000 people signed up for the waitlist.

Spellbook is just one of many Canadian startups that are building generative AI applications based on OpenAI’s GPT technologies.

Toronto-based Manorlead, for example, is using the OpenAI integration to offer smarter home-search capabilities. It allows people to type their queries for finding properties as they would talk to a friend. A sample prompt read something like: “I want a 4BR detached house in Vaughan around $1.5 million to $2.5 million,” which would generate results that align with the provided context.

Ada, which is also based in Toronto, launched a suite of generative AI tools to automate certain processes in customer inquiries. Vancouver’s social media giant Hootsuite launched an AI-powered content generator, which can turn web content into social posts or rewrite them.

Featured image courtesy Unsplash.

The post Spellbook, formerly Rally, raises $10.9 million to automate legal contracts using generative AI first appeared on BetaKit.

BenchSci closes $95-million CAD Series D to expand AI drug-discovery platform

Josh Scott — Thu, 25 May 2023 19:06:15 +0000

Toronto-based BenchSci, which helps pharmaceutical firms accelerate research and development (R&D) using artificial intelligence (AI), has secured $95 million CAD in Series D funding.

BenchSci plans to use this capital to expand its AI-powered drug-discovery platform. Using proprietary text and image-based machine learning machine (ML) models, BenchSci claims its ASCEND software enables scientists to accelerate the pace and increase the success of research during the pre-clinical drug-development process.

BenchSci has amassed a customer base that includes 16 of the world’s top 20 pharma firms.

The all-equity, all-primary round, which closed in early May, was led by Al Gore’s Generation Investment Management with support from existing BenchSci backers Inovia Capital, TCV, Golden Ventures, and F-Prime Capital, brings BenchSci’s total funding to $218 million. The fresh capital brings BenchSci’s total funding to $218 million.

In a statement, BenchSci co-founder and CEO Liran Belenzon hailed the company’s Series D round as “validation” of the work its team has done and the traction that BenchSci has generated with large pharma and biotech firms around the world. To date, BenchSci has amassed a customer base that includes 16 of the world’s top 20 pharma companies—from Eli Lilly to Sanofi, Moderna, and AstraZeneca—and more than 4,500 research centres globally.

Belenzon declined to disclose BenchSci’s Series D valuation or latest financial metrics to BetaKit, noting only that the company is “very happy” with the terms it received.

“We are lucky to be an outlier in this market,” he said.

As Belenzon noted, BenchSci previously closed $63 million in Series C financing in the fourth quarter of 2021, when the tech funding market was at an all-time high. At the time, BenchSci was gaining market traction with its AI-assisted reagent selection application, and developing ASCEND, its enterprise AI platform for life sciences R&D, which the company launched in early 2023.

“In the 15 months between our rounds, we transitioned from a startup to a scale-up,” Belenzon told BetaKit, claiming that the firm tripled its revenue, doubled its team size from 200 to 400, and brought its offering to three more big pharma firms.

Belenzon noted that while BenchSci has seen significant growth despite current economic conditions, many other tech and biotech companies have suffered. The CEO acknowledged leading public and late-stage private tech firms have experienced deep market-cap and valuation cuts, while pharma firms have sought to reduce costs.

Amid this environment, Belenzon said BenchSci decided the timing was right to raise more capital.

“More money in the bank will offset this risk without sacrificing our velocity as a company,” he added. “My sense and the advice I got from our investors was that what we are seeing in the market is just the beginning, and it will last for a few years, so there is really no point to wait and optimize for a better market.”

Canada currently houses a number of notable tech firms applying AI to drug discovery, including AbCellera and Deep Genomics. Unlike Deep Genomics, which uses AI directly to discover drug candidates, BenchSci views its platform as a tool for scientists working at other organizations.

“While AI has been making an impact in R&D over the past decade, it hasn’t scaled,” argued Belenzon. “We have seen many AI-first biotech companies that build a full-stack AI biotech that both competes and collaborates with pharmaceutical companies. We decided to democratize AI so we can help accelerate every single drug-discovery program in the world.”

“Previously, a scientist typically had to spend hundreds of hours to understand existing experiments and conclusions,” Generation Investment Management growth equity partner Anthony Woolf said in a statement. “With BenchSci’s models, scientists can find the same answer in minutes, accelerating drug discovery and reducing the time and cost to develop potentially life-saving drugs.”

UPDATE (05/26/23): This story has been updated to note responses from BenchSci co-founder and CEO Liran Belenzon.

Feature image courtesy BenchSci.

The post BenchSci closes $95-million CAD Series D to expand AI drug-discovery platform first appeared on BetaKit.

Locorum raises $1.2 million to help local service businesses grow through referrals

Charlize Alcaraz — Thu, 25 May 2023 17:20:59 +0000

Locorum, a marketing tech company based in London, Ont., has raised $1.2 million CAD in pre-seed funding as it looks to enter the United States (US) market.

Investors in the round include JNF Group, the Ontario Centre of Innovation, Outway CEO Rob Fraser, and Andrew Young, a mortgage broker at Axiom Mortgage Solutions. Locorum said 42 percent of the funds raised came from businesses and investors already using its platform.

Founded by Matt Santagapita and Carlon Farina in 2019, Locorum started out as a marketing company that primarily focused on serving real estate firms and other companies that provided local services, such as moving, roofing, plumbing, and cleaning.

The pair of co-founders noticed a gap in the market for services to help businesses grow through word-of-mouth referral, which is typically the main sales channel for local service providers.

Locorum claims over 150 businesses across 18 Canadian cities have used its platform.

To address this problem, Locorum developed a subscription-based advertising platform that enables business owners to manage referrals online like a targeted marketing campaign. In this mission, the startup brought on repeat entrepreneur Jeff Duke as its third co-founder and CEO in 2020.

“We see Locorum as the future of offline referral management and marketing,” said Duke, who previously founded online sustainable fashion brand L/L Supply. “We are delivering a proven digital marketing solution to sectors that rely almost exclusively on organic, offline word-of-mouth to generate new business.”

Drawing on insights from how referral marketing is done for e-commerce and enterprise technology, Locorum has built a suite of digital tools to help businesses acquire new customers and build brand loyalty.

By subscribing to Locorum, businesses can advertise their services via the startup’s platform. Initially, Locorum adopted a direct-to-consumer model, allowing clients to find and hire businesses through its directory. Duke told BetaKit that the startup is now focusing on B2B tools.

As an incentive to leave reviews and support local businesses, Locorum partnered with MasterCard in 2022 for its rewards program, providing customers with prepaid MasterCards. Clients can be rewarded between $50 and $5,000 cash back for a single hire or referral.

Locorum said over 150 businesses across 18 Canadian cities have used its offering. With this funding, Locorum plans to grow its membership base and enter the U.S. market.

Locorum said it is also expanding its product to residential development, allowing builders to automate referrals from their existing database and past buyers. The tool will be launching in Canada within the next 30 days, the startup noted.

Working towards these goals, Locorum said it recently expanded its technical and sales teams to increase their capacity and deliver new product features.

Featured image courtesy Locorum.

The post Locorum raises $1.2 million to help local service businesses grow through referrals first appeared on BetaKit.

Evaluating UCP and NDP plans for tech as Alberta’s election day approaches

Josh Scott — Thu, 25 May 2023 12:58:52 +0000

Advance polling for the 2023 Alberta general election has already begun. What’s on the table for the province’s tech sector?

Neither the incumbent United Conservative Party (UCP), headed by Premier Danielle Smith, nor the UCP’s biggest challenger, Rachel Notley’s Alberta New Democratic Party (NDP), has released a comprehensive policy platform. However, while light on specifics, both parties’ statements and commitments to date offer some indication as to what could be at stake for the province’s innovation sector come election day on May 29.

“Both parties seem to be avoiding talking specifics in terms of policy, so as not to rock the boat.”

“It’s perhaps a testament to the nail-biting closeness of the 2023 election campaign that both parties seem to be avoiding talking specifics in terms of policy, so as not to rock the boat,” stated Jess Sinclair, director of government affairs for Alberta at the Council of Canadian Innovators (CCI), which shared its review of how the province’s two biggest political parties plan to support Albertan tech with BetaKit.

As Sinclair noted, despite the lack of specificity, both parties have put forth some interesting promises related to attracting and retaining talent in Alberta and drawing more tech investment into the province as it looks to continue to diversify its economy beyond energy. “While commodity prices wax and wane, the technology sector has the potential to be the engine of prosperity for the province for generations to come,” said Sinclair.

Alberta’s tech ecosystem has generated momentum in recent years. Led by a bevy of maturing tech companies, rising investment levels, and increased buy-in from the provincial government following a hard-fought relationship, Alberta has become globally recognized as an emerging tech hub. But within the provincial government, much of this groundwork was laid under the leadership of former premier Jason Kenney and innovation minister Doug Schweitzer.

Recent political turnover, including the departures of Kenney and Schweitzer—who have since been replaced by Smith and Nate Glubish, respectively—and another election underway to determine who will lead Alberta for the next four years, has made the future of the province’s support for the tech sector uncertain.

While many stakeholders BetaKit spoke with back in 2022 expressed confidence that the political turnover won’t affect government support for tech broadly, leadership changes inherently bring risk, especially as new politicians and parties often pause spending to assess previous government policies and commitments.

To date, the UCP has made a small number of specific promises and committed to a number of other high-level tech-related items—a far cry from the 111-page platform the party released in 2019. As CCI notes, the “cornerstone of the UCP’s economic agenda is tax cuts and lots of them.” While the party has not made many specific commitments toward the tech sector, it appears that its overarching strategy is focused on ensuring Alberta is an affordable and attractive province in which to live and work.

The NDP has been more detailed about its promises. “Unlike their political rivals, the New Democrats have gotten specific about several items related to the tech industry over the course of the campaign,” notes CCI. This includes promising to reinstate several innovation economy tax credits, roll out some new ones, and launch an Alberta Venture Fund. “Still, like the UCP, the NDP’s larger economic plan is somewhat light on additional details,” adds CCI.

The UCP has placed greater emphasis on growing Alberta’s skilled workforce than the NDP. The UCP’s plan for addressing the province’s tech talent shortage includes committing to fast-tracking credential approval times, introducing a Graduation Retention Tax Credit and Alberta is Calling signing bonus, plus $35 million in previously announced funding for workforce planning and enrollment expansion in construction, energy, and tech.

These promises appear to build on the UCP’s approach with Budget 2023, which targeted skilled labour development and retention but outlined little else in the way of support for tech, focusing more on affordability and infrastructure. As Thin Air Labs partner James Lochrie put it to BetaKit back in March, innovation-wise, Alberta’s latest budget was about maintaining “the status quo” given the growth that the province’s tech sector has seen in recent years.

For its part, on the talent front, CCI notes that the NDP intends to establish a downtown campus for Calgary’s future Innovation District, in partnership with the University of Calgary.

One other recent issue raised by Alberta’s tech community that could hamper the province’s efforts to improve its skilled talent pool may be the Association of Professional Engineers and Geoscientists of Alberta’s hardline approach to the title of “engineer” as it relates to software engineers, which tech firms claim is discouraging tech workers from locating to the province.

Investment-wise, while the NDP has outlined a wider array of strategies aimed at ensuring capital is flowing toward Alberta’s tech community, both parties appear to have some focus on ensuring venture capital (VC) investment in Alberta’s innovation sector continues to grow.

As BetaKit reported, VC funding in Alberta’s tech sector grew for the third quarter in a row during Q1—bucking the national downward trend as economic conditions have worsened. Over the past year, some investors have expressed concern that VC funding in Alberta may decline to levels similar to other Canadian tech ecosystems. For his part, Lochrie believes there is “a good chance” Alberta could set a new record in 2023 following its strong start.

The NDP has promised to reinstate the Interactive Digital Media Tax Credit and the Alberta Investor Tax Credit, introduce Alberta’s Future Tax Credit, create an Alberta Venture Fund, eliminate the small business levy, and increase the corporate tax rate—lowered to eight percent under then Premier Jason Kenney—back up to the 11 percent it was at previously.

Meanwhile, the UCP has committed to investing $100 million in the Alberta Enterprise Corporation; $25 million in Indigenous VC equity funds through Alberta Indigenous Opportunities Corporation, and $22.5 million in previously announced funding for the Alberta Technology Innovation Strategy.

As far as ensuring that government buys more tech going forward, the NDP has proffered a more detailed strategy on this front, offering $75 million over three years for healthtech through the Alberta Health Services procurement portal, and putting forth plans to formalize a Government of Alberta Digital Strategy.

For its part, prior to the election being called, the UCP was actively consulting on a Government of Alberta digital strategy. CCI noted that it looks forward to the results of this consultation should the UCP remain in power.

“The good news is that both parties have proven themselves open to working with innovators on diversifying Alberta’s economy, and unlike 2019 when Alberta was in a major commodities slump, there’s a renewed sense of can-do spirit in the province,” stated Sinclar.

Feature image courtesy Wikimedia Commons.

The post Evaluating UCP and NDP plans for tech as Alberta’s election day approaches first appeared on BetaKit.

Code for Canada ED: Laid-off tech employees are overlooking opportunities in public service

Genna Buck — Thu, 25 May 2023 11:00:06 +0000

It’s no secret that the tech sector is going through a turbulent moment, and that tech workers are feeling the brunt of it.

With repeated rounds of layoffs hitting the sector, most recently at Shopify, many talented people are considering where to take their career.

We’d like to suggest an overlooked area of the job market where transformation is taking place, outcomes can change lives, and there’s no shortage of unique challenges — the public service.

As a non-profit working to develop digital products and services for the public good, we believe in designing for all, not just some, people. That also happens to be the mission and mandate of the government.

In the past, the public service hasn’t been able to compete for digital talent. Things are changing.

We think tech professionals should consider the challenge — and reward — of designing solutions for everyone in Canada, not just those who can afford to pay for them. These users are people whose lives can be legitimately and systemically improved by better public digital services.

In the past, the public service hasn’t been able to compete for digital talent, who were offered exorbitant salaries by large tech companies and shiny startups. And while it’s true that the government faces challenges within their digital teams, from a lack of job titles like UX Designer that are standard in the private sector, to a limited tech stack and a reliance on waterfall over agile, things are changing.

COVID-19 saw the rollout of more digital public services faster than ever before, demonstrating the government’s ability to be agile and user-focused when it needs to be. The federal government has recognized the need to bridge the gap between technology and its citizens, drawing on learnings from the pandemic in its new digital government strategy.

The Canadian Digital Service, Ontario Digital Service, and Nova Scotia Digital Service are just three examples of government teams advocating for quality digital public services and the methods needed to achieve them. At all levels of government, teams are revisiting everything from their tech stacks to product development methodologies.

In the past, becoming a civil servant was considered a career for life, but that’s changing too. Interchange agreements and other mechanisms are allowing tech workers to take a “tour of service” by contributing to the public sector for a year or two before moving on to their next opportunity.

At Code for Canada, we place technologists in shorter, fixed-term projects to help our public-sector partners tackle digital challenges. Some go on to stay in the public service, while others take what they’ve learned and re-enter the private sector. Most notably, they all report a deep satisfaction from working on projects that will impact people nationwide.

There is an incredible calibre of tech talent in Canada. This moment in the tech sector should be a rallying cry for tech workers to embrace the tech for good movement. Whether it’s a yearlong commitment or a total career shift, we can and should think about leveraging our collective skills to improve life in this country for everyone.

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A|I: The AI Times – OpenAI’s Sam Altman says this Canadian city should become a hub for AI

Alex Riehl — Thu, 25 May 2023 10:00:28 +0000

The AI Times is a weekly newsletter covering the biggest AI, machine learning, big data, and automation news from around the globe.

If you want to read A|I before anyone else, make sure to subscribe using the form at the bottom of this page.

“The revolution has launched”: OpenAI’s Sam Altman charts the promise and peril of AI at Toronto event (BETAKIT)

In a fireside chat at Toronto's Design Exchange with Shopify co-founder and CEO Tobias Lütke, Altman expressed a great deal of optimism about the current pace of AI research and development, while also noting the risks.

“Toronto, by the way, should be one of the hubs for this in the world,” Altman added. “This should be a big moment for Toronto.”

OpenAI CEO tells Senate that he fears AI’s potential to manipulate views (THE WASHINGTON POST)

OpenAI chief executive Sam Altman expressed support for an international organization that would set standards for artificial intelligence, saying there is precedent in how governments around the world have approached regulating nuclear weapons.

Caucus group launched to deal with emerging technology like AI, blockchain (BETAKIT)

Citing blockchain and artificial intelligence as two forms of tech rapidly impacting Canada’s social and economic fabric, Michelle Rempel Garner and Colin Deacon said they launched the cross-partisan working group of Canadian parliamentarians.

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ServiceNow Invests In AI-Based Enterprise Startups With $1B Venture Commitment (CRUNCHBASE)

ServiceNow, a cloud infrastructure company based out of California, is diving into the AI arms race with a $1 billion contribution to its venture firm, ServiceNow Ventures, to invest in artificial intelligence and automation companies targeting enterprise use cases.

Mayor Tory’s departure, competing bids, and financial pressure on province and feds place Collision’s future in Canada in doubt (BETAKIT)

The conference has upped its ask to north of $40 million CAD for an extended three-year stay, as five other cities vie to host the conference.

The race to bring generative AI to mobile devices (FINANCIAL TIMES)

As tech companies rush to embed generative AI into their software and services, they face significantly higher computing costs.

Running generative AI on mobile handsets, rather than through the cloud on servers operated by big tech groups, could answer one of the biggest economic questions raised by the latest tech fad.

How Inkbox CFO Louise Hucal handled the process of being acquired by a global corporation (BETAKIT)

Louise Hucal has worked in Fortune 500 companies and been involved in multiple M&A deals as an employee. However, pen maker Bic’s acquisition of temporary tattoo startup Inkbox felt more personal.

“We were not in the ‘be acquired’ head space at all at that point in time and were still comfortably funded by our venture partners," Hucal said.

Apple Restricts Employee Use of ChatGPT, Joining Other Companies Wary of Leaks (THE WALL STREET JOURNAL)

Apple has restricted the use of ChatGPT and other external artificial intelligence tools for some employees as it develops its own similar technology.

Apple is concerned workers who use these types of programs could release confidential data.

ChrysaLabs raises $15 million to help farmers unearth soil data using AI (BETAKIT)

Montréal-based agtech startup ChrysaLabs, which provides soil-testing technologies, has raised a $15-million CAD funding round.

Founded in 2017, ChrysaLabs offers a sampling probe that can help farmers unearth deeper insights into their soil. According to ChrysaLabs, the probe can analyze 40 different soil parameters, using artificial intelligence to deliver real-time insights.

Sanctuary rolls out Phoenix, a Carbon-based humanoid AI labor robot (NEW ATLAS)

Canada's Sanctuary AI has revealed a new humanoid robot, shooting for the "world's first human-like intelligence in general purpose robots (GPR)."

The humanoid form certainly isn't the most efficient shape for a useful robot – but it's an excellent shape for a robot that's designed to take over as many human tasks as possible.

The apocalypse isn’t coming. We must resist cynicism and fear about AI (THE GUARDIAN)

Stephen Marche, who recently joined the Betakit Podcast, pens an opinions piece that runs counter to the "doomerism" surrounding the AI conversation.

"Let’s get a sense of what this alien is before we blow it out of the sky. Maybe it’s beautiful."

Alberta’s tech sector remained resilient in first quarter of 2023 (BETAKIT)

AI is coming for voice actors, but some see an opportunity
(THE GLOBE AND MAIL)

When Voices.com, a website that connects voice actors with clients, announced it had launched Voices.ai, a service for voice actors to clone their voice and earn royalties, it received more blowback than expected.

For those who depend on their voices for their livelihoods, deriving passive income from an AI clone might be appealing. But for others, it represents an insidious creep toward their own demise.

Québec attracted more venture funding than any other Canadian region in Q1 2023 (BETAKIT)

Despite seeing a decline in venture funding both quarter-over-quarter and year-over-year, Québec attracted more investment than any other Canadian region in the first quarter of 2023.

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AbCellera receives $300 million in combined government funding for biotech campus

Douglas Soltys — Wed, 24 May 2023 21:12:38 +0000

Vancouver-based biotechnology firm AbCellera has received significant provincial and federal backing in support of plans for its new $701-million biotech campus.

Jointly announced today by Innovation, Science and Industry Minister François-Philippe Champagne and British Columbia (BC) Premier David Eby, AbCellera will receive $300 million through the Strategic Innovation Fund. The funding will be used to upgrade existing facilities throughout Vancouver and to develop a “state-of-the-art” biotech campus featuring a preclinical antibody-development facility.

AbCellera will use the funds to create 400 new full-time positions and invest in R&D.

The Government of Canada will commit the lion’s share of the funds, with the province of BC contributing $75 million. The feds have made over $2.1 billion in funding commitments to Canada’s biomanufacturing and life sciences sectors since March 2020, including a prior $175.6 million contribution to AbCellera in response to the COVID-19 pandemic.

“In 2020, our government made a promise to Canadians that we would build back our life sciences ecosystem,” Minister Champagne said in a statement. “And today, we are once again delivering on that promise by partnering with AbCellera, a company at the cutting edge of technology. Its project will make sure that Canada is at the forefront of antibody drug development, while also strengthening our life sciences sector.”

Both levels of government reaffirmed their commitments to life sciences and biomanufacturing earlier this year as part of revised strategies to drive job growth and emergency preparedness.

Founded in 2012, AbCellera has developed a drug-discovery platform that searches for and analyzes antibodies suitable for disease treatment or prevention. The company entered the national spotlight during the COVID-19 pandemic, as it developed two monoclonal antibody therapies to treat the virus. It claims these products have been used to treat more than 2.5 million patients.

In addition to building the new facilities, AbCellera will use the funds to create 400 new full-time positions and invest in research and development (R&D).

“This project, and the commitment to co-invest alongside the governments of Canada and British Columbia, is a major step towards building the capabilities in Canada to translate scientific breakthroughs into new medicines that will benefit patients here and around the world,” AbCellera founder and CEO Carl Hansen said.

Council of Canadian Innovators president Ben Bergen, who has recently shared pointed criticisms of the federal government’s innovation strategy, offered praise for the announcement on LinkedIn.

“This is exactly what we want to see,” he said. “Canadian governments supporting domestic companies to grow & create wealth for our economy. This is a prosperity strategy that leads to higher GDP per capita!”

The post AbCellera receives $300 million in combined government funding for biotech campus first appeared on BetaKit.

With regulatory approval, Hiive launches VC secondary trading platform in Canada

Josh Scott — Wed, 24 May 2023 17:29:46 +0000

Vancouver-based FinTech startup Hiive has rolled out its venture capital (VC) secondary marketplace to Canadians after announcing it has received registration across Canada as an exempt market dealer.

Through its platform, Hiive matches buyers and sellers of stock in private, VC-backed firms, permitting them to discover pricing and trade shares without engaging a live broker. The startup serves a space that also features players like EquityZen, Zanbato, and Birel.

Hiive, which has already been operating in the United States (US) for nearly a year, claims it already services thousands of customers south of the border, where it is regulated by the US Financial Industry Regulatory Authority and Securities and Exchange Commission.

“With the IPO window firmly shut, this may be one of their only paths to cashing out in the foreseeable future.”

The startup’s expansion into Canada will permit Canadian tech employees and accredited investors—including venture capitalists, investment funds, family offices, and ultra-high-net-worth individuals—to buy and sell shares in privately-held tech companies at a time when many firms are opting to stay private for longer.

Per PitchBook, following a “near-standstill” in the secondary market, after public tech stocks tanked and buyers and sellers had “divergent expectations” concerning late-stage private company valuations, there has been a recent uptick in demand for secondhand stakes in startups.

This has come as founders, employees, and VC backers of late-stage tech companies that had planned to go public soon but opted to hold out amid a largely frozen and unfavourable initial public offering (IPO) market have sought liquidity and become more willing to accept discounts on their shares in order to acquire it.

“Thousands of Canadians are employed by the 1000+ US, European, and Canadian tech companies that are listed on our platform,” Hiive co-founder and CEO Sim Desai said in a statement. “With the IPO window firmly shut, this may be one of their only paths to cashing out in the foreseeable future.”

Hiive aims to bring transparency to the traditionally opaque private equity (PE) secondary market. Founded in 2021, the company was spun out of Toronto-based Setter Capital, an investment bank that focuses primarily on the PE secondary market.

Led by Desai, formerly managing director at Setter, Hiive’s other co-founders include fellow Setter alumnus Prab Rattan (Hiive’s head of capital markets), Sarah Huggins (Hiive’s COO and general counsel, and also married to Desai), and Stuart Eccles as CTO and head of product. Per Secondaries Investor, Setter is a minority investor in Hiive; following the publication of this story, a Hiive spokesperson told BetaKit that “Setter Capital is not currently a shareholder on [Hiive’s] cap table.”

Per the company’s website, Hiive seeks to “preserve as many of the established best practices of brokers in the global pre-IPO secondary market, while eliminating the opacity and uncertainties traditionally associated with private market trading.”

Feature image courtesy Hiive.

The post With regulatory approval, Hiive launches VC secondary trading platform in Canada first appeared on BetaKit.

Shopify extends point-of-sale hardware to Canadian retailers after initial US launch

Charlize Alcaraz — Wed, 24 May 2023 13:00:49 +0000

Shopify is making its point-of-sale (POS) hardware solution available to Canada as part of its broader product strategy for both online and offline commerce.

The Ottawa retail tech giant’s mobile selling device, called “POS Go,” was first rolled out to retailers in the United States (US) in 2022.

POS Go is built to run Shopify’s POS software, which launched in 2013 and came out with a “new” version in 2020. The hardware is part of Shopify’s renewed plans for brick-and-mortar sales tools as the reduction of social distancing and restrictions due to COVID-19 have brought back foot traffic for businesses.

Shopify’s decision to expand into physical retail comes after its initial focus on e-commerce, which CEO Tobi Lütke has called the wrong bet to make as online retail sales have descended from pandemic-driven heights. The company has since made layoffs and key executive changes, and sold its logistics arm.

Shopify claims that in the first quarter of 2023, sales made by merchants using its point-of-sale solution grew 31 percent year over year.

Arpan Podduturi, vice president of product at Shopify, told BetaKit that Go’s initial launch in the US allowed the company to “better understand the demand from merchants” as it plans for additional international rollouts.

Go is meant to help businesses maintain more control of their stores, allowing them to access real-time sales information, monitor operations, and deliver on-the-spot personalized experiences for customers on the sales floor.

According to Shopify, merchants with presence across the US and Canada can now combine various aspects of their offline selling experience into one handheld device.

Other features in Go include a built-in barcode scanner that allows retailers to process transactions wirelessly, build carts in-store and email them to customers for completion later, and take payments confidentially.

With this Canadian launch, Shopify said Go now comes with a French translation option for its merchants in Québec.

Despite consumer trends changing throughout the COVID-19 pandemic, brick-and-mortar stores have remained the primary point of purchase for consumers, representing almost 70 percent of total retail sales, according to the US National Retail Federation.

As a relatively new product, Go faces heated competition in the POS space with other companies offering solutions for physical retail.

Montréal-founded Lightspeed Commerce, for example, offers its POS solutions to both retail and restaurant industries. Nuvei, which is also based in Montréal, offers a cloud-based POS integration. There are also incumbents in the US, such as Clover Network and Square.

Featured image courtesy Shopify.

The post Shopify extends point-of-sale hardware to Canadian retailers after initial US launch first appeared on BetaKit.

Novisto closes $27-million CAD Series B to help companies improve their ESG reporting

Josh Scott — Wed, 24 May 2023 11:00:17 +0000

Montréal-based Novisto, which sells environmental, social, and governance (ESG) data-management software, has closed $27 million CAD ($20 million USD) in Series B funding to scale its platform.

The equity round was led by Montréal’s Inovia Capital, with support from fellow new investors Toronto-based Portage and Scor Ventures, the corporate venture capital arm of French reinsurance firm Scor. Novisto’s Series B financing also saw follow-on participation from White Star Capital and Montréal-based venture builder Diagram Ventures.

“It’s a critical time for sustainability initiatives to be taken seriously.”

A Novisto spokesperson told BetaKit that the company plans to invest its Series B funding in product development and market expansion, as it seeks to scale its artificial intelligence and data science efforts and expand across the globe.

ESG is a framework used to measure an organization’s business practices and performance from a social and sustainability perspective. ESG-focused investors consider a company’s climate-change initiatives, diversity, equity and inclusion (DEI), and corporate transparency.

Shareholders have been pressuring companies to improve transparency and bolster their ESG practices and policies for some time now. Amid the economic downturn, many investors have continued to prioritize ESG issues—even as some execs have backed away from ESG goals as they prepare for the possibility of a recession, and an anti-ESG movement has gathered steam south of the border.

Despite the overall growth of ESG-focused investment, Novisto claims that most sustainability reports released by companies today “lack standardization” and fail to provide actionable information. Novisto argues that companies “need a structured and organized approach to accurately define and address complex ESG issues, opportunities, and challenges.”

Novisto aims to help companies do just that. The startup’s platform helps major global firms manage their ESG data and comply with increasingly stringent sustainability disclosure requirements. Founded in 2019 by CEO Charles Assaf, chief information officer Marian Borca, and chief partnership officer Edouard Clement, Novisto enables organizations to track and evaluate their ESG performance.

Novisto declined to disclose what valuation its Series B financing gives the company. The company told BetaKit that the round, which involved an undisclosed amount of secondary capital, brings its total funding to around $40 million CAD. This Series B capital comes about two years after the startup secured $9.6 million in Series A financing led by White Star Capital with participation from Diagram Ventures, which helped launch Novisto.

Amid growing demand for its ESG data-management software, Novisto claims to have tripled its revenue, customer base, and employee headcount year-over-year. The firm has grown to over 130 employees across North America and Europe, and approximately 70 customers, amassing a roster of big-name clients including Asana, Bell, Bombardier, Danone, Intact, Manulife, Meta, and Moderna.

To support its expansion plans, Novisto intends to use its Series B capital to grow its team to 200 with hires in tech, sales, and marketing roles.

As The Globe and Mail has reported, activist investors are busier than ever these days. Per Bloomberg, in 2022, there were 26 new activist shareholder campaigns in Canada, and shareholder pressure regarding ESG reporting in particular remained elevated. According to a report from Laurel Hill Advisory Group, 88 percent of all shareholder proposals in Canada in 2022 concerned ESG matters, up from 62 percent in 2021.

Meanwhile, many regulators, including the Canadian Securities Administrators to the United States Securities and Exchange Commission and European Commission, have introduced or are developing mandatory ESG reporting requirements. Per PwC, many Canadian companies are “unprepared” for them. According to Novisto, these upcoming rules are “giving companies the push to put more organized ESG reporting in practice.”

As Inovia partner Magaly Charbonneau argued in a statement, “It’s a critical time for sustainability initiatives to be taken seriously, and Novisto’s platform helps companies produce quality, audit-ready ESG data that enables them to make quantifiable, meaningful change.” Charbonneau is joining Novisto’s board as part of the round.

UPDATE (05/25/23): This story was updated to note responses from Novisto.

Feature image courtesy Novisto.

The post Novisto closes $27-million CAD Series B to help companies improve their ESG reporting first appeared on BetaKit.

S|W: The SaaS Weekly – 1Password launches passkeys for businesses

Alex Riehl — Wed, 24 May 2023 10:00:27 +0000

The SaaS Weekly is a weekly newsletter covering major SaaS news from Canada and around the globe.

Subscribe to S|W using the form at the bottom of this page to ensure you don’t miss out on the most important SaaS news every week!

Tehama returns as management team buys it out of bankruptcy (BETAKIT)

The founder and former executive team of Ottawa-based Tehama Inc. have restructured and bought the startup out of bankruptcy, renaming it Tehama Technologies Inc.

“Management undertook a pretty risky plan to acquire the debt to save the company and then led an effort to restructure it and acquire it, and now we’re pretty chuffed,” CEO Paul Vallée said.

Software company New Relic in talks to be sold
(THE WALL STREET JOURNAL)

New Relic, based in San Francisco, provides observability software, which allows app owners and websites to track the performance of their services.

Private-equity firms Francisco Partners and TPG are working together on a $5 billion-plus bid to acquire the software company since its stock has fallen to $77.01 from a 2021 high of around $120.

Mayor Tory’s departure, competing bids, and financial pressure on province and feds place Collision’s future in Canada in doubt (BETAKIT)

The conference has upped its ask to north of $40 million CAD for an extended three-year stay, as five other cities vie to host the conference.

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Insiders say Oracle is crushing morale at $28 billion acquisition Cerner by cutting over 3,000 workers, banning raises, and sidelining its former CEO (INSIDER)

Since buying health IT giant Cerner for about $28 billion, Oracle has halted raises and promotions and laid off thousands of employees in the unit, four current and former employees told Insider.

1Password launches passkeys for businesses as shift to passwordless picks up (BETAKIT)

1Password is bringing passkeys to businesses with a new standalone product named “Passage” as the Toronto-based startup picks up its pace in the shift to the next generation of authentication.

Procurement Startup Zip Announces $100 Million In New Funding At A $1.5 Billion Valuation (FORBES)

Zip, a San Francisco-based startup that helps businesses manage spending, announced a fresh round of capital today: a $100 million Series C at a $1.5 billion valuation.

Zip’s goals are to help the right teams at a business access the right pieces of the procurement process at the right times to make the process faster and more transparent.

How Inkbox CFO Louise Hucal handled the process of being acquired by a global corporation (BETAKIT)

Louise Hucal has worked in Fortune 500 companies and been involved in multiple M&A deals as an employee. However, pen maker Bic’s acquisition of temporary tattoo startup Inkbox felt more personal.

“We were not in the ‘be acquired’ head space at all at that point in time and were still comfortably funded by our venture partners," Hucal said.

Meta hit with record-breaking $1.3 billion fine over Facebook data transfers to the US (THE VERGE)

Meta has been hit with a record-breaking $1.3 billion fine (€1.2 billion) by EU data regulators, and ordered to stop transferring the Facebook data of EU citizens to the US. EU courts believe such data transfers expose EU citizens to privacy violations — a complaint that stems back to 2013 and revelations by whistleblower Edward Snowden about US mass surveillance programs.

Québec attracted more venture funding than any other Canadian region in Q1 2023 (BETAKIT)

Despite seeing a decline in venture funding both quarter-over-quarter and year-over-year, Québec attracted more investment than any other Canadian region in the first quarter of 2023.

Snowflake in Talks to Buy Search Startup Neeva in AI Push
(THE INFORMATION)

Database software provider Snowflake has been in advanced talks to acquire Neeva, a search startup founded by former top Google ad tech executive Sridhar Ramaswamy.

Neeva primarily sells an ad-free web-search app for consumers, but it developed software that combines search with large-language models, which are trained on text to understand the nuances of speech and writing.

Alberta’s tech sector remained resilient in first quarter of 2023 (BETAKIT)

Twitter makes its first acquisition with a recruiting startup (AXIOS)

Twitter appears to have made its first deal of the Elon Musk era: buying a job-matching tech startup called Laskie.

This is the company’s first known acquisition under Musk’s leadership, as well as a transaction that helps fulfill the billionaire's aspirations to turn Twitter into a "super-app" that offers users multiple functions — including payments.

Withe raises $1.1 million in mission to address hospitality hiring challenges (BETAKIT)

Vancouver-based Withe has raised $1.1 million USD in all-equity, pre-seed funding, to support hospitality brands in meeting their hiring needs through its digital recruitment platform.

The post S|W: The SaaS Weekly – 1Password launches passkeys for businesses first appeared on BetaKit.

As Nasdaq delisting looms, asset management firm mCloud looks to go private

Charlize Alcaraz — Tue, 23 May 2023 17:30:26 +0000

Calgary-based mCloud, a publicly traded company that offers cloud services for asset management, is in talks to go private as its stock price has plunged over the last year.

With tightening equity markets, low-volume trading, and other macroeconomic factors, boards like mCloud’s have increasingly explored the option of going private to navigate the downturn.

mCloud formed a special committee out of its board of directors in March to “maximize shareholder value,” in an effort to revive its share prices.

mCloud has until Sept. 19 to regain compliance with Nasdaq.

In the Nasdaq Capital Market, mCloud has been trading below the $1.00 minimum price for about three months, putting it at risk of being delisted from the stock exchange. mCloud also previously received the same notice in November 2022.

After evaluating several options, mCloud said the committee “has narrowed its efforts towards a transaction that would result in the acquisition of the company by a strategic partner.”

Founded in 2010 by Russ McMeekin (CEO) and Costantino Lanza (chief growth and revenue officer), mCloud provides a suite of asset-management solutions for the consumer goods, wind, as well as oil and gas industries. It lets companies use AI and analytics, as well as create 3D replicas of their facilities, to optimize their energy consumption.

After initially listing on the TSX Venture Exchange in 2019, mCloud began trading on the Nasdaq in 2021, where it raised $12.1 million CAD from its public offering.

mCloud’s share price has declined since then. It is currently trading at $0.47 USD on the Nasdaq. This represents a nearly 80 percent decrease compared to this time last year, following the trend of other companies that have faced headwinds in the public markets.

Similarly, Vancouver FinTech startup Mogo received the same bid price deficiency notice from Nasdaq in October and has continued to trade below the $1 minimum since then, with its shares priced at $0.81 USD by press time.

In another circumstance, Toronto-based E Inc, a vehicle auction marketplace, voluntarily delisted its shares from the Toronto Stock Exchange in April, citing “extremely limited trading volumes.”

mCloud has until Sept. 19 to regain compliance with Nasdaq, which would require its stock to close at $1.00 per share or more for at least 10 consecutive business days before the deadline. The company could qualify to extend its compliance period for 180 days by meeting Nasdaq’s other listing standards.

If it appears to Nasdaq that mCloud won’t be able to pull its shares out of deficiency, the company would be subjected to delisting.

mCloud said it will continue to pursue this potential acquisition, but did not disclose the nature or timing of any possible transaction.

Featured image courtesy mCloud.

The post As Nasdaq delisting looms, asset management firm mCloud looks to go private first appeared on BetaKit.

“There’s a revolution in the wings”: Why Canada’s semiconductor industry needs an overhaul

Stefan Palios — Tue, 23 May 2023 10:00:45 +0000

The explosive growth of generative AI is blowing up preconceived notions of what it means to build technology innovations. Not only do the fulsome computing needs of AI and machine learning extend well beyond current semiconductor capacity, but existing workarounds are both incredibly expensive and require significant energy to run.

The good news is this is a massive opportunity for Canadian innovators—but only if industry perceptions change. Speaking with BetaKit, Niraj Mathur, co-founder of Blumind, shared his experience building a deep-tech company in Canada and why he feels the semiconductor industry is due for an all-out revolution.

“Silicon is the great leveller.”

Most conversations about AI vacillate between its incredible potential to change everything and its fairly significant risks. But Mathur said there’s a more mundane issue at hand: energy consumption.“If AI growth continues at the rate it has been for the last eight-odd years, it’s going to consume almost all the energy generated by humanity today within 30 years,” said Mathur. “It’s just an unfathomable amount of energy.”

This is the problem Mathur hopes to solve. He and the team at Blumind are building a new type of semiconductor chip that is not only physically smaller, enabling AI and machine learning in smaller devices (think AR headsets), but also significantly more energy efficient. To do this, the company is designing new silicon architecture, which Mathur claimed lowers a neural network’s power needs by 100 to 1,000 times compared to what’s currently available on the market. And prototyping is going “beautifully, beyond our expectations.”

“One guiding principle that we have in our industry is the proof is always in the silicon,” Mathur said. “And that’s because silicon is the great leveller. If you have a great idea, if you have simulations, if you have great concepts, that’s all well and good. But it comes down to ‘hey, you got to put it in a chip and show it works.’”

Hardware needs long-game support

Mathur noted that there isn’t much competition in the market right now for the new silicon architecture Blumind is building: large companies are working to repurpose existing products to lower energy profiles and other AI innovators are focused on what AI can do rather than how it’s powered.

Mathur knows the competition will come; the power needs of AI are too great to be ignored for long. But a bigger issue for Blumind might be getting the support it needs to grow. He compared the Canadian semiconductor industry, which had previously fallen out of favour and only recently received renewed government support, to that of SaaS, which features consistent investment and industry support.

“Silicon is the great leveller. If you have a great idea, if you have simulations, if you have great concepts, that’s all well and good. But it comes down to ‘hey, you got to put it in a chip and show it works.’”

This is where programs like ventureLAB’s Hardware Catalyst Initiative come in, offering an accelerator-style program for semiconductor startups. Blumind was one of the inaugural companies in the program and Mathur said it was “phenomenal” that ventureLAB brought together two key supports every hardware company needs: lab facilities and a network of the right people.

“We’ve used the facilities here extensively to characterize and validate our silicon,” said Mathur. “I’m not aware of any other incubator, not only in Canada but anywhere in the world, that has this kind of support for semiconductor companies.”

On top of physical resources, Mathur said the network ventureLAB brought together for companies in the program was essential. He explained that hardware companies have different business models, timelines, revenue strategies, and capital needs compared to the average SaaS businesses. And more to the point, the people who deeply understand those differences are few and far between in North America—but Mathur said ventureLAB was able to bring them together.

“Getting the folks, the ecosystem partners, the advisors in their orbit to support our type of company was phenomenal,” said Mathur.

Mathur acknowledged that the program isn’t for everyone, and advises founders to have more than a “science project” ready before applying. He added that while the timeline to develop actual solutions is long, founders should have at least some market interest from both would-be customers and investors.

“Incubators are great for providing support in all those areas,” said Mathur. “But it’s important as an entrepreneur you have some of those fundamentals sorted out in your head and have some third-party validations to go with it.”

Beware of too much gray hair

While Mathur is excited about the future of Blumind and the opportunity to add to Canada’s semiconductor industry, he’s nervous about one thing: aging. Specifically, he’s noticed that the industry is “graying at a very fast pace.”

His explanation for this issue–despite the fact that the semiconductor industry offers great pay and growth opportunities–is that career interest had fallen out of favour in the past 15 years as software became sexy. Now, however, there is not only massive economic potential but also support to build hardware companies—and Mathur said young people need to see this potential and choose to enter the industry. If they don’t, Canada’s economy will face greater talent crunches and a crippling technology deficit in the near future.

“I hope especially our youth recognize this because I’d like to see more students selecting semiconductor design courses and electronics engineering courses and choosing this career path,” said Mathur.

The post “There’s a revolution in the wings”: Why Canada’s semiconductor industry needs an overhaul first appeared on BetaKit.

List highlights 10 fast-growing, impactful SDTC-backed Canadian cleantech firms

Josh Scott — Tue, 23 May 2023 10:00:08 +0000

Earlier this month, Sustainable Development Technology Canada (SDTC) unveiled its latest list of SDTC portfolio firms that have shown significant growth in recent years and delivered sustainability and economic benefits for Canada.

These 10 Canadian tech companies generate at least $10 million in revenue per year with annual growth of 20 percent or more, and have environmental and sustainability benefits.

The launch of SDTC’s “Sustainability Changemakers” of 2023 list comes as the world navigates extreme weather and record temperatures, and the United Nations Intergovernmental Panel on Climate Change warns that we must act now to protect the environment, or it will be too late.

Amid these conditions, Canada and other countries have ramped up their support of cleantech companies, at a time when—despite some bright spots—overall investment in the sector has fallen as economic conditions have worsened.

SDTC’s 2023 list saw four returnees from 2022. This group includes Richmond, British Columbia-based industrial wastewater-treatment and lithium-refining firm Saltworks, Calgary pipeline and infrastructure monitoring company Hifi, Montréal-based startup Enerkem, which produces biofuels and renewable chemicals from waste, and Collingwood company Key DH Technologies, which develops deuterium and hydrogen solutions.

Six new Canadian tech companies joined the above four returnees, including Dartmouth, Nova Scotia biotech Mara Renewables, Mississauga-based battery tech firm Electrovaya, Vancouver mining tech firm MineSense Technologies, Calgary-based cleantech company WestGen, Brantford, Ontario’s Greenmantra Technologies, which transforms waste into polymers for industrial products, and Toronto-based digital mapping startup Ecopia AI.

All of the companies that have cracked this list satisfy the following criteria: they have at least $10 million CAD in annual revenue, a compound annual growth rate of 20 percent or more over the last three years, sustainable benefits and environmental impact, a global footprint, and at least half of their workforce and operations are in Canada.

The 2022 edition of this list—and SDTC’s first to date—also featured 10 companies, including Vancouver-based AgTech firm Semios, Mississauga’s Vive Crop Protection, and Darthmouth-based CarbonCure Technologies.

The Government of Canada made cleantech a priority in Budget 2023. The country’s latest federal budget was particularly heavy on clean energy and cleantech investment and tax credits. As Canada’s Deputy Prime Minister and Minister of Finance Chrystia Freeland noted in her March 20 pre-budget positioning speech, Budget 2023 prioritizes a “significant and necessary” investment in the green economy.

With these initiatives, the feds aim to help bring the country’s green-transition efforts up to speed with the United States, which passed a historic $369 billion USD climate and tax deal last year.

Created and financed by the Government of Canada, SDTC is an arm’s-length agency tasked with funding the development of new clean technologies. SDTC invests in Canadian companies across the seed, startup, and scale-up stages advancing pre-commercial cleantech with the potential for significant environmental and economic benefits. The organization represents an important part of the federal government’s strategy for supporting the green economy.

The release of this year’s SDTC list comes as SDTC contends with an investigation into allegations of financial mismanagement and conflict of interest, as first reported by The Globe and Mail.

The release of this year’s list comes as SDTC contends with a federal investigation into its governance and management.

Per The Globe, this probe was prompted by a group of former employees who allege that some projects from entrepreneurs with close ties to the agency’s management and board received preferential treatment and that in some cases, this has led to the SDTC funding companies that may not have required taxpayer-funded grants, given their current revenues and private fundraising efforts.

A spokesperson for the Government of Canada’s department of Innovation, Science and Economic Development (ISED) confirmed to BetaKit that in February, ISED received allegations related to “the governance and management” of SDTC, and has since launched a fact-finding exercise run by independent third-party Raymond Chabot Grant Thornton “to determine the merit of these allegations and whether further action may be required.”

The spokesperson told BetaKit that ISED expects to receive a final report “in the coming weeks,” adding that “the department will not hesitate to take any necessary steps to address the findings.”

“SDTC is fully cooperating with the fact-finding exercise initiated by the Government of Canada and will be able to comment further once this exercise is complete,” an SDTC spokesperson told BetaKit. “At this time the allegations have not been substantiated.”

Feature image courtesy Saltworks.

The post List highlights 10 fast-growing, impactful SDTC-backed Canadian cleantech firms first appeared on BetaKit.

Canadian startup news of the week (5/22/23)

Alex Riehl — Tue, 23 May 2023 09:00:58 +0000

Welcome to BetaKit’s startup stories of the week! Here, you will find the week’s most important news, features, and editorials published on BetaKit.

If you prefer this update hit your inbox every week, make sure to subscribe to the BetaKit Newsletter using the form at the bottom of this page.

Latest Funding, Acquisitions, and Layoffs

VAN – Withe – $1.1M (read more)
TOR – Peak Power – $47M (read more)
TOR – Bloom – $7M (read more)
TOR – Vault – $5M (read more)
TOR – MCI OneHealth sells five Calgary clinics to Well Health (read more)
TOR – Tough Commerce – $2M (read more)
OTT – Tehama management buys company out of bankruptcy (read more)
MTL – Stathera – $20M (read more)
MTL – ChrysaLabs – $15M (read more)

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The BetaKit Podcast

WHAT'S NEXT FOR SHOPIFY?

"This announcement communicated two things: this thing we're getting rid of isn't primary to our mission—it's a side quest, we don't actually care about this; and we have a cultural problem at our company with who we've hired and what they're focused on."

Madeline Stone, retail and e-commerce writer for Business Insider, joins to discuss the future of Shopify's "main quest" after cutting staff and selling off its logistics division. Co-hosts Rob & Doug then take over to discuss whether or not Shopify is the victim of Canada's tall poppy syndrome.

DO THE FEDS HAVE AN INNOVATION STRATEGY?

"I don't necessarily know if the government understands what an innovation strategy is."

CCI president Ben Bergen joins to answer listener-submitted questions about: the Canada Innovation Corporation, open banking, SR&ED reform, and why the feds are behind on so many innovation files.

Subscribe to B|K: The BetaKit Newsletter

The post Canadian startup news of the week (5/22/23) first appeared on BetaKit.

F|T: The FinTech Times – PayPal spent $1 billion on Xoom, now facing pressure to sell

Alex Riehl — Tue, 23 May 2023 09:00:55 +0000

Bloom raises $7 million to make applying for reverse mortgages easier (BETAKIT)

Toronto-based Bloom has raised $7 million in Series A funding CAD to make applying for reverse mortgages easier.

Bloom said its platform has been actively expanding since it launched in 2021. It claims to have extended nearly $100 million CAD to homeowners in Ontario and British Columbia to date.

Crypto’s Most Influential Companies Often Follow Their Own Rules — Even After FTX’s Collapse (BNN BLOOMBERG)

The lack of effective corporate governance and due diligence conducted on FTX’s books raised eyebrows around the world. But for crypto industry watchers, it’s not an unfamiliar tale.

Binance exits Canada as crypto trading platforms feel broader impact of stricter regulations (BETAKIT)

Binance, the world’s largest crypto trading platform by daily trading volume, is joining other crypto businesses to pull out of the Canadian market amid mounting regulatory pressure.

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In this webinar, you will learn how to attract capital investment through the following:

Data-driven storytelling through SaaS metrics & meaningful underlying business dynamics
Demonstrating market fit & identifying where your company shines/areas of improvement
Showcasing data investors want to see from seed to growth stage

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Bank of England plans to reject Revolut’s bid for banking licence
(THE TELEGRAPH)

The Bank of England has told the Treasury that it is planning to reject Revolut's application for a banking licence, after a two-year campaign by Britain's most valuable fintech company.

It said the company’s initial application would be turned down owing to concerns over its balance sheet.

Mayor Tory’s departure, competing bids, and financial pressure on province and feds place Collision’s future in Canada in doubt (BETAKIT)

The conference has upped its ask to north of $40 million CAD for an extended three-year stay, as five other cities vie to host the conference.

PayPal, Under Shareholder Pressure, Looks to Sell Xoom
(THE INFORMATION)

PayPal has been seeking buyers for Xoom, the international money transfer service it bought for roughly $1 billion in 2015.

The sale efforts could signal that activist investor Elliott Management, which accumulated a stake last year, is having an impact on PayPal’s strategic thinking.

Small business banking platform Vault launches with backing from Google’s Gradient Ventures (BETAKIT)

Vault is the latest Canadian startup looking to make banking easier for small-to-medium-sized businesses, securing $5 million CAD in funding to date.

While Shafik and Aziz see their platform as unique, they are far from the first entrepreneurs who have seen a need to make Canadian banking easier for SMBs.

Creditors of Quadriga crypto fraud to receive 13% of funds they lost in payout (THE GLOBE AND MAIL)

Former users of QuadrigaCX will receive 13 per cent of the funds they had stored with the cryptocurrency exchange when it collapsed into bankruptcy after the death of its founder more than four years ago.

More than 17,600 claims were submitted, with amounts ranging from a few hundred dollars to a few million dollars.

How Inkbox CFO Louise Hucal handled the process of being acquired by a global corporation (BETAKIT)

Louise Hucal has worked in Fortune 500 companies and been involved in multiple M&A deals as an employee. However, pen maker Bic’s acquisition of temporary tattoo startup Inkbox felt more personal.

“We were not in the ‘be acquired’ head space at all at that point in time and were still comfortably funded by our venture partners," Hucal said.

Wealthsimple to let users insure up to $300,000 as global bank failures prompt better depositor protection (BETAKIT)

Calling it an industry first, Wealthsimple said its clients with cash accounts are now eligible for up to $300,000 in CDIC coverage.

This new offering comes after the collapse of Silicon Valley Bank (SVB), where the United States’ Federal Deposit Insurance Corporation only insured deposits up to $250,000.

M-KOPA snaps up $250M+ debt, equity for its asset financing platform (TECHCRUNCH)

M-KOPA, the asset financing platform that offers underbanked African customers access to “productive assets” and the ability to pay for them via digital micropayments, has secured more than $250 million in new funding.

Québec attracted more venture funding than any other Canadian region in Q1 2023 (BETAKIT)

Despite seeing a decline in venture funding both quarter-over-quarter and year-over-year, Québec attracted more investment than any other Canadian region in the first quarter of 2023.

Western Union rival Zepz lays off 26% of employees as fintech cuts continue (CNBC)

Money transfer group Zepz is laying off 420 of its approximately 1600 employees as the fintech sector grapples with a tough macroeconomic environment.

It is the second time in just under a year that Zepz has laid off staff. In June 2022, Zepz implemented job cuts affecting around 5% of its workforce.

Alberta’s tech sector remained resilient in first quarter of 2023 (BETAKIT)

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What’s next for Shopify?

Douglas Soltys — Mon, 22 May 2023 10:00:56 +0000

On May 6 2020, at the market’s closing bell, Ottawa-based ecommerce provider Shopify had displaced RBC as Canada’s largest company by market cap. In the midst of the pandemic, it was the start of a meteoric rise—that hasn’t lasted.

“This announcement communicated two things: this thing we’re getting rid of isn’t primary to our mission—it’s a side quest, we don’t actually care about this; and we have a cultural problem at our company with who we’ve hired and what they’re focused on.”

The company’s share price is back down to its pre-pandemic levels, and in the last year, Shopify has laid off first 10 and then 20 percent of its staff. That last deep cut came earlier this month as it also sold off its logistics division, which the company spent billions developing, including acquisitions of Deliverr and 6 River Systems.

And it’s not like that pandemic rise was a smooth ride. Since March 2020, at least 12 senior leaders have departed the company, including three C-suite execs since September of last year. Many other longtime and respected leaders were let go in the last round of cuts.

Now, this episode isn’t a concern troll. It’s unlikely that Canada’s still largest tech company is going anywhere. But what comes next for Shopify is an interesting question—particularly as it is now approaching its 20th birthday and 10 years as a publicly traded tech company.

That question kicks off a variety of other interesting questions: about Shopify’s intersection points with Amazon, what makes the product so great, what the company’s leadership cares about, and whether or not Shopify is a victim of tall poppy syndrome in Canada.

Helping us answer most of these questions, or perhaps provide an informed vibe check, is Madeline Stone, retail and e-commerce writer for Business Insider. Let’s dig in.

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The BetaKit Podcast is hosted by Douglas Soltys & Rob Kenedi. Edited by Kattie Laur. Feature image courtesy David Fitzgerald/Collision via Sportsfile (CC BY 2.0). Sponsored by Goodlawyer.

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Caucus group launched to deal with emerging technology like AI, blockchain

Charles Mandel — Fri, 19 May 2023 20:24:17 +0000

A Member of Parliament and a Canadian Senator concerned with the pace of technology versus that of regulation announced they are forming a parliamentary caucus on emerging technology.

Citing blockchain and artificial intelligence (AI) as two forms of tech rapidly impacting Canada’s social and economic fabric, Michelle Rempel Garner and Colin Deacon said they launched the cross-partisan working group of Canadian parliamentarians. They said they have convened in response to a rapidly changing technology landscape that presents opportunities and challenges for Canada.

Garner is the PC Member of Parliament for Calgary Nose Hill, while co-chair of the caucus group, Deacon, is a Canadian Senator.

“I believe we can work together on issues and not allow those conversations to become partisan.”

Deacon told BetaKit that they want to see if between the House and the Senate if they can begin to deal with the opportunities and challenges associated with some of the emerging technologies in a way that is more agile than what is currently being done.

“Pace is the biggest issue,” Deacon said.

Deacon pointed to Bill C-27 as an example. The bill, titled An Act to enact the Consumer Privacy Protection Act, the Personal Information and Data Protection Tribunal Act and the Artificial Intelligence and Data Act and to make consequential and related amendments to other Acts, was tabled a year ago.

Deacon said the bill will go to committee in September, and he doesn’t know how long it will sit there, and what amendments might take place. “The legislation is probably a year away from being passed, and then a two or three year process of developing the regulations that will actually form how that legislation functions,” he noted.

“The process is so long … are there ways we can be more agile?” Deacon asked rhetorically.

Rempel said the new group will aim to function as a nimble forum to link all interested Parliamentarians with a broad range of stakeholders engaged in relevant fields ranging from artificial intelligence, web3, blockchain technologies, and more.

“We will do this in order to educate, and where possible, identify areas of consensus on principles related to the role of government and policy objectives that might best foster positive outcomes for Canadians,” she said.

Deacon said he would like to see regulators and innovators become much closer. He noted it’s difficult for regulators to deal with some of the technologies until they understand what’s involved, and what can be controlled and what can’t.

“There is an idea that there should be a pause in large-language models for generative AI,” Deacon said. “First thing, I’m not of the opinion that is reasonable, because bad actors will continue to move ahead, and only the good guys will potentially stop. We have to get parliamentarians in a position where we can start to find a way to keep up.”

Deacon was referring to recent open letters from the likes of Yoshua Bengio, the co-founder of Montréal-based Mila, along with hundreds of tech leaders, artificial intelligence (AI) researchers, policymakers and other concerned parties, urging all AI labs to agree to a six-month pause on training systems that are more powerful than GPT-4.

BetaKit · Do the feds have an innovation strategy? (AMA episode)

Deacon proposed that parliamentarians need to become more comfortable with the opportunities and challenges facing them, and start chatting about the options while building some inter-parliamentary cooperation, support, and consensus.

But is that possible? During debates over Bill C-11, the so-called online streaming bill, passed into law April 27 with over 100 amendments, an attempt was made to rush the bill through Parliament, according to news reports. But Senators said at the time they would not be pushed to scramble through some 150 proposed amendments to the bill, despite pressure from the government.

“I believe we can work together on issues and not allow those conversations to become partisan,” Deacon declared. “This is not about anybody gathering partisan talking points. It’s [about] trying to learn and see what our options might be as Canadians.”

Deacon ultimately hopes that the caucus group will discover approaches that allow Canadians to be far more agile in how they take advantage of the opportunities technology can bring, and how they manage the risks of new technologies.

“If we can do that, I’d feel a lot more confident about the future,” he said.”If we’re not able to do that, it’s worrisome, because it means we end up at the consuming end of technology, not the creating end of it.”

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Ailing MCI OneHealth divests five clinics in Calgary to Well Health for $2 million

Charles Mandel — Fri, 19 May 2023 18:25:50 +0000

The five clinics include more than 50 physicians, and based on historical results, Well expects the assets to contribute approximately $10 million in revenue moving forward.

“This transaction will help support the operational needs of MCI Onehealth in the short- to medium-term, while preserving quality care for our loyal patient population by placing our Alberta clinics into the hands of an innovative, tech-forward Canadian healthcare leader who shares our values and vision for the future of Canadian healthcare,” said Dr. Alexander Dobranowski, CEO of MCI OneHealth.

MCI OneHealth went pubic with a $30M IPO in 2021, but today the stock is worth pennies

MCI OneHealth went public in 2021, closing a $30-million initial public offering (IPO), but today the company’s stock is worth pennies. Its stock sat at 15 cents a share at press time, down from a 52-week high of $1.59, and down from a 52-week low of 85 cents.

Well said the new clinics will be integrated into its existing primary care clinic network, which includes more than 3,000 healthcare providers in Well’s patient services business units across North America.

“We are very pleased to announce the acquisition of additional primary care clinics in Calgary, as it represents an excellent opportunity for us to expand and bring our comprehensive practitioner enablement platform to more providers in Alberta,” said Hamed Shahbazi, CEO of Well.

Shabazi said the acquisition of the Calgary clinics marked a significant milestone in Well’s national clinic expansion strategy, and builds upon Well’s previous Alberta acquisitions, such as InLive and CloudPractice.

In its 2022 financial results, MCI OneHealth reported a cash balance of approximately $1.4 million and accounts payable and other current liabilities of approximately $18 million. The company said it would need to obtain additional financing by the end of April 2023 to fund ongoing operations, and that it may be required to obtain additional financing in future periods.

In the meantime, two of the company’s independent directors have formed a special committee and are evaluating MCI OneHealth’s current financial and liquidity position, operational challenges, and possible financing, reorganization, or restructuring alternatives available to the company.

At the same time, to address its lack of necessary liquidity, MCI OneHealth said it has been and is continuing to responsibly reduce costs while it evaluated the potential options.

Although the company posted revenue increases for the year, its net losses added up to $21 million compared to $15.5 million in the previous year. Any revenue gains were offset by higher research and development costs related to the ramp up of the company’s technology platform, MCI OneHealth noted.

In the fourth quarter of 2022, MCI OneHealth also consolidated five of its underperforming Ontario clinics into its remaining 14 clinics in that province. That enabled the company to extend hours and expand services at the remaining clinics while significantly reducing overhead costs. The consolidated clinics ceased operations in the fourth quarter of 2022, and the majority of their physicians, nurses, and staff were redeployed.

For its part, Well has followed an aggressive plan of raising money and acquiring assets. Founded in 2012 by Shahbazi, Well Health is an acquisitive healthtech company that is traded on the Toronto Stock Exchange under the symbol ‘WELL.’

The British Columbia-based firm offers a health-care practitioner platform that includes tools for digital patient engagement, electronic medical records, revenue cycle management, and data protection services. Well Health also claims to own and operate Canada’s largest network of outpatient medical clinics.

Well sold $30 million worth of its common shares in 2022 to support its acquisitions. Well has used that money to leverage the net proceeds from that deal to support its growth initiatives, including potential future acquisitions in the physician acquisition, specialty clinic, and executive health spaces. The company also intended to use it for working capital and other general corporate purposes.

Well Ventures, the investment arm of Canadian healthtech company Well Health, has launched an “investment program” in 2023 for artificial intelligence companies that are developing solutions for healthcare providers. Well said it aims to make a minimum of 10 AI-related investments of at least $250,000 each. The venture group said it plans to make a minimum investment of $2.5 million.

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Tough Commerce raises $2 million to become Shopify for “complex” industries like construction

Charlize Alcaraz — Fri, 19 May 2023 18:25:27 +0000

Toronto startup Tough Commerce has raised $2 million CAD as it looks to become the Shopify for more complex industries like construction.

In this mission, the startup has rebranded from Brokrete to Tough Commerce and added former Shopify engineering lead Willem van Bergen as an investor and board member last year.

The $2-million round was led by Tough Commerce’s board chair and investor Ronald Richardson. It also received contributions from Legacy Capital Ventures, Groupe PSC, MaRS IaF, and other undisclosed investors in proptech.

Tough Commerce allows companies in the construction industry to build their own app and web-based storefronts.

Founded in 2017 by Jordan Latourelle, Tough Commerce’s platform allows companies in the construction industry to build their own app and web-based storefronts. It claims to serve industries that have been traditionally underserved by e-commerce brands like Shopify, enabling businesses to create industry-specific workflows and digitize their operations.

Some of Tough Commerce’s capabilities include order management, pricing management, logistics, e-ticketing, invoicing, customer portal, AR automation, and real-time delivery.

van Bergen, who spent over a decade of his career working various leadership roles at Shopify after joining the company when it was just four years old, said he sees “strong parallels” between Tough Commerce and the retail tech giant’s early days.

“The team has the right energy, expertise and product needed to be the leader in this market, and it’s a big market,” said van Bergen.

Tough Commerce said its platform is currently used by construction suppliers across Canada, the United States, and Australia. Tough Commerce is not the only startup that offers e-commerce solutions for the construction industry, however. In Canada, Tough Commerce is joined by fellow Toronto-based company Toolbx. There is also Cloudfy, an English firm that provides its e-commerce platform for the broader trades industry.

The space that Tough Commerce operates in has not been immune to the downturn, however, as it faces inflation, supply chain issues, slow down in venture funding, and other macroeconomic factors. Montréal-based RenoRun for example, which offered an e-commerce platform for building materials, had to shut down operations after filing for insolvency.

With its new name and funding, Tough Commerce said it plans to continue expanding its platform, though it didn’t share details on the focus for its expansion.

Tough Commerce claims to have raised north of $7.8 million CAD in total funding to date. This includes the $3.8 million CAD in seed funding that it closed across several rounds. The startup also took part in Y Combinator’s Winter 2020 cohort.

Featured image courtesy Unsplash.

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Energy management startup Peak Power raises $47 million CAD to expand across US

Charlize Alcaraz — Fri, 19 May 2023 17:09:49 +0000

Toronto cleantech startup Peak Power has raised $47.2 million CAD ($35 million USD) as it looks to capitalize on increasing adoption of energy storage solutions in the United States (US).

Peak Power raised the round from a slate of investors in sustainable technology. The funding was led by a fund affiliated with Greenbacker Capital Management, with participation from existing investors such as Hatch, The Atmospheric Fund, BDC Capital, Sensata Technologies, and Osmington Inc.

Peak Power also plans to hire for “critical roles,” and continue to develop its software.

Founded in 2015, Peak Power provides energy management solutions for commercial real estate and industrial companies.

Peak Power claims its flagship software, Peak Synergy, can help users minimize operational costs, reduce emissions, and sell energy back to the grid.

Peak Power plans to expand south of the border as a new tax incentive is driving adoption for energy storage.

In 2022, US President Joe Biden signed the Inflation Reduction Act of 2022 into law, which is meant to fight inflation, as well as encourage carbon emissions reduction, domestic energy production, and manufacturing investment.

The legislation offers investment tax credit incentives, which was extended to “energy storage technology” later that year. This credit can alleviate the costs of installing, owning, and operating battery energy storage systems.

“Tailwinds in the US energy storage market have never been stronger,” said Derek Lim Soo, co-founder and CEO of Peak Power. “The demand for clean distributed energy resources is growing, government policies are removing barriers for investment, and technology is becoming more cost-effective.”

According to Peak Power, its platform can optimize energy use for three assets: battery energy storage systems, electric vehicles, as well as “grid-interactive buildings,” which are infrastructures that can effectively change their energy consumption to lower demand on the energy grid.

Peak Power claims Synergy is currently deployed in over 13 million square feet of real estate across North America. It operates in Ontario, New York, New England, Virginia, and California.

With this funding, Peak Power plans to further expand across the US, hire for “critical roles,” and continue to develop its software.

Peak Power said it also plans to increase its project deployment efforts using its previously announced $200 million financing agreement with Madison Energy Investments. It also raised a $12 million CAD financing round in 2021.

Featured image courtesy Peak Power

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Stathera closes $20 million CAD Series A to commercialize semiconductor timing tech

Josh Scott — Fri, 19 May 2023 15:22:04 +0000

Montréal-based fabless semiconductor startup Stathera has secured $20 million CAD ($15 million USD) in Series A financing to bring its first-generation microchip clock to market.

Stathera’s all-equity, all-primary Series A round was co-led by BDC Capital’s Deep Tech Venture Fund and San Francisco-based, deep tech-focused venture firm Celesta Capital. The financing, which closed in mid-April, was supported by strategic investors from the semiconductor and electronics spaces, including Taiwan’s MediaTek and TXC, and Japan-based Seiko Epson.

Stathera specializes in micro-electromechanical systems (MEMS) and develops MEMS-based timing solutions for semiconductors. As Stathera co-founder and CEO George Xereas told BetaKit, nearly all electronic devices today require the use of a clock to synchronize the different components of microchips.

Stathera builds “modern semiconductor clocks” that its CEO argues will help the market transition away from traditional crystal oscillators.

Traditionally, crystal oscillators have provided these reference clocks, but Xereas claimed that these crystal oscillators are beginning to bump up against “their physical limits in terms of performance and miniaturization, and can no longer keep up with advances in [microchips].”

As Celesta Capital founding managing partner Nicholas Brathwaite noted in a statement, “It is clear that next-generation electronics are in great need of new solutions that can meet the growing demands of performance and cost.”

Enter Stathera, which builds “modern semiconductor clocks” that Xereas argues will help the market transition away from crystal oscillators. According to the CEO, Stathera’s tech will enable manufacturers of wearable IoT electronic devices to replace multiple components with one, helping them simplify their supply chains while also saving space.

The startup’s origin dates back to 2015 when Montréal-based Nxtsens Microsystems was founded based on tech initially developed at McGill University. Stathera was spun out of Nxtsens a few years later with the goal of commercializing Nxtsens’ MEMS timing solution. It officially began operating as a separate entity in 2020, with funding from Nxtsens as part of a $4.8 million USD seed round in July 2020 that also saw support from South Korea’s Doosan and Congo-based Groupe GSIM. Stathera’s Series A round brings the company’s total funding to $20.8 million USD, a figure that includes $1 million in non-dilutive capital.

Stathera is one of two Canadian tech companies spun out of Nxtsens, alongside Montréal-based MY01, which develops MEMS pressure sensors for medical diagnostic equipment and recently closed a $12.5 million CAD Series A round of its own. Xereas, Nxtsens’ CTO, initially worked as CTO of MY01 before splitting off to help launch and head Stathera.

According to Xereas, beyond traditional crystal oscillator suppliers, only two incumbents exist within the MEMS timing space that Stathera is focused on. These two include California’s SiTime—which Xereas claims currently has the majority of market share—and Arizona-based Microchip.

For his part, Xereas sees room for Stathera to enter the market as an alternative to SiTime. Compared to its competitors, Xereas says Stathera’s “key differentiator” is its “DualMode MEMS,” which he claims is “the world’s first dual output resonator that can simultaneously generate both the kHz and MHz outputs from a single resonator”—enabling one Stathera device to replace the two needed from other players.

Stathera plans to use its Series A funding to fully commercialize its initial product line and invest in developing the company’s next-generation tech. To support these efforts, Stathera has inked a commercial collaboration agreement with Doosan, which backed Stathera’s seed round and is pursuing partnerships with two of its Series A investors in MediaTek and TXC.

As it gears up to go to market and enter the commercialization phase early next year, Stathera plans to expand its 15-person team to 25 by the end of 2023 with hires in engineering, operations, and sales. Stathera also plans to scale up its production capacity.

With its first-generation product, Stathera plans to target companies that make smart watches and fitness bands, such as Samsung, Apple, and Garmin. The startup hopes to move into other markets and applications via future offerings.

As part of Stathera’s Series A round, Charles Lespérance, partner at BDC Capital’s Deep Tech Venture Fund, and Celesta partner Terry Gilton are joining the startup’s board. In a statement, Lespérance expressed confidence that Stathera’s forthcoming products “will enable new capabilities in sectors like IoT, computing, automotive, and telecommunications.”

Feature image courtesy Unsplash. Photo by Sahand Babali.

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Withe raises $1.1 million in mission to address hospitality hiring challenges

Charlize Alcaraz — Fri, 19 May 2023 10:00:35 +0000

With more than half of Canadians looking to travel at some point in 2023, the hospitality industry is rapidly staffing up to meet demand.

Vancouver-based Withe aims to support hospitality brands in meeting their hiring needs through its digital recruitment platform.

Withe has raised $1.1 million USD in all-equity, pre-seed funding, led by San Francisco venture capital firm Focal. Withe told BetaKit there were also angel investors who participated in the round, though it didn’t name them. The funding closed by the end of 2022 and represents Withe’s first funding round.

Withe will use this capital to hire senior developers and build its product development roadmap.

Founded in 2021 by Liam Ross and Daniel Shalinsky, Withe provides an on-demand video interview platform designed to improve the experience for both the candidate and the recruiter in the hiring process.

Withe noted several obstacles that enterprises might face in their hiring campaigns, such as scheduling challenges, underusing recruiters, and low candidate attendance at interviews.

Withe claims its platform can allow for more interviews completed and less time wasted in empty video conference rooms. This lets companies increase show-rate and reduce downtime for hiring managers, according to Withe.

Using Withe, companies can schedule calls with individual candidates in advance or create a hiring event where candidates can join without having to register. Withe claims it can reduce the time spent meeting with candidates by 82 percent.

Withe joins other companies that provide solutions for hiring challenges in the tourism and hospitality sectors. In Canada, there is Saskatoon-based 7Shifts, which has built a team management platform for restaurants as people return to in-person dining.

Though Toronto-based skills marketplace Staffy has shifted its focus to healthcare workers since the COVID-19 pandemic began, it initially specialized in hiring for the hospitality industry.

As it looks to capitalize on the 2023 summer travel surge, Withe said it will use this new pre-seed capital to expand its technical team and build its product development roadmap.

Currently, Withe said it has three people in its technical team, two of whom were hired after Withe closed the funding round towards the end of last year. The startup said it plans to hire one or two additional members to its technical team this year, focusing on senior developers.

Shalinsky said Withe’s roadmap includes deeper integrations with application tracking systems, smarter qualification and routing functions, as well as external job posting capabilities.

In addition to Withe’s enterprise and large-scale hiring events, Shalinsky added that Withe plans to launch a solution for individual recruiters.

Withe also previously received $125,000 USD in 2022 when it participated in an accelerator with On Deck.

TrueBlue, a workforce management company based in Washington state, is Withe’s first enterprise customer and will act as its design partner. On its website, Withe also lists hospitality giant Marriott International as one of its users.

Featured image courtesy Withe.

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H|T: The Healthtech Times – Recursion acquires two Canadian AI drug-discovery companies

Alex Riehl — Fri, 19 May 2023 09:00:54 +0000

The Healthtech Times is a weekly newsletter covering healthtech news from Canada and around the globe.

Subscribe to H|T using the form at the bottom of this page to ensure you don’t miss out on the most important healthtech news every week!

American biotech Recursion acquires two Canadian AI drug-discovery companies, Cyclica and Valence (BETAKIT)

Recursion, a drug-discovery company based in Salt Lake City, will buy Canadian AI drug-discovery companies Cyclica for $53.4 million CAD ($40 million USD), and Valence for $63.4 million CAD ($47.5 million USD). It expects both acquisitions to be completed in the second quarter of 2023.

‘Hard to catch up’: FDA commissioner on regulating new digital health tools (STAT NEWS)

Digital health tools are developing faster than the Food and Drug Administration is able to regulate them, FDA Commissioner Robert Califf acknowledged this week.

“I think we’re behind, and it’s going to be really hard to catch up,” Califf said in a speech Monday at the National Health Council’s patient engagement symposium.

“A new bottom”: Toronto and Waterloo Region venture funding fell short in first quarter of 2023 (BETAKIT)

Venture funding in Toronto and the Waterloo Region had a particularly sluggish start to 2023, with startups in the neighbouring tech ecosystems raising less than eight percent of what was raised in the same quarter last year.

MultiPlan shells out $160M for analytics AI company Benefits Science (FIERCE HEALTHCARE)

MultiPlan announced that it has acquired analytics and AI company Benefits Science Technologies (BST) for $160 million.

BST's platform uses AI to optimize financial and clinical decision-making for around 75,000 employers looking to predict and mitigate future risk and manage health plan decisions.

BC venture deal volume reached a three-year low in first quarter of 2023 (BETAKIT)

According to briefed.in's latest report, in the first quarter of 2021, startups in BC raised a total of $95.1 million through nine deals. Investment in terms of dollars raised fell by 78 percent from the fourth quarter of 2022 and 82 percent year-over-year.

Cue Health lays off another 30% of workforce (MOBIHEALTHNEWS)

Cue Health laid off another 326 workers, or about 30% of the home diagnostics company's workforce, as part of a new cost reduction plan.

The cuts mark a second round of layoffs this year. In January, Cue laid off 388 employees, about 26% of its workforce.

How startups can better manage their e-waste (BETAKIT)

The life cycle of electronics needs to be re-envisioned, said Electronic Recycling Association (ERA) managing director Andrew Wesolowski, especially if we want to sustain the environment we inhabit.

Wesolowski said startups are the target businesses the ERA aims to help with the equipment it repurposes, as they "typically would not have much to discard since they are just entering the market."

Digital health guidance platform Amino snags $80M in the midst of shaky economy (FIERCE HEALTHCARE)

Despite record inflation, peak interest rates and lingering questions of a recession, digital healthcare guidance platform Amino Health is excelling with $80 million in recent financing.

Amino began as a direct-to-consumer product that only recently evolved into an enterprise subscription model serving health plan members, third-party administrators, benefits administrators and concierge care vendors.

Inflation blamed for decline in mental health of Canadian founders in the last year (BETAKIT)

Based on a survey with 1,500 respondents, the Business Development Bank of Canada (BDC) found that rising inflation rates has taken a toll on startup founders, identifying that as a potential stressor that could be behind why their mental health significantly declined in the last year.

Oura Ring Maker to Buy Digital Identification Startup Proxy
(BNN BLOOMBERG)

Finnish wearable-technology maker Oura Health Oy is acquiring a little-known tech startup, Proxy Inc., which makes digital identification tools, the company plans to announce Tuesday.

San Francisco-based Proxy has been working in stealth mode on biometric systems that work with smartphones and wearables.

Odaia closes $34 million CAD Series B to fix “bottleneck” in drug delivery process (BETAKIT)

Toronto-based software startup Odaia has secured $34 million CAD ($25 million USD) in Series B financing co-led by Threshold Ventures and Monograph Capital, a pair of foreign venture capital investors focused on life sciences and healthtech companies.

Odaia’s software automates the data analysis process using AI and machine learning to collect and analyze phrama industry data sources, which is usually a long, intensive process needed to support sales and marketing efforts.

Google is training its generative AI to analyze medical images — and talk to doctors about them (STAT NEWS)

Google is infusing its generative AI model with medical images such as X-rays and mammograms to help it communicate with doctors about data routinely used in patient care.

While prior iterations of AI could either analyze images, or respond to questions, the company’s new model, known as Med-Palm 2, aims to put those capabilities together in a single system.

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R|T: The Retail Times – Alibaba logistics arm eyes up to $2 billion Hong Kong IPO

Alex Riehl — Fri, 19 May 2023 09:00:09 +0000

The Retail Times is a weekly newsletter covering retail tech news from Canada and around the globe.

Subscribe to R|T using the form at the bottom of this page to ensure you don’t miss out on the most important retail tech news every week!

Attabotics sues Canadian Tire over warehouse fire (BETAKIT)

Calgary-based 3D robotics supply chain firm Attabotics has filed a statement of claim against Canadian Tire over a March 15 warehouse fire at Canadian Tire’s distribution centre in Brampton, Ontario.

Attabotics alleges that as a result of Canadian Tire’s “alleged evasiveness and obstruction,” it has suffered and continues to suffer damages for which Canadian Tire is liable.

Alibaba logistics arm eyes up to $2 billion Hong Kong IPO – sources (REUTERS)

Alibaba's logistics arm aims to raise up to $2 billion via a listing in Hong Kong likely early next year, sources with knowledge of the matter said, bolstering hopes for a capital markets revival in the Asian financial hub.

Hopper to power Uber’s expansion into flight bookings (BETAKIT)

Montréal-based startup Hopper has struck a deal with Uber, allowing people in the United Kingdom to book flights on the rideshare app.

Hopper has made several moves to expand its product suite in recent years as part of its mission to become a “super app” for travel. This includes the launch of its B2B initiative Hopper Cloud, which has taken on notable companies as clients such as Capital One and now Uber.

TikTok Delays Full Opening of U.S. Shop (THE WALL STREET JOURNAL)

ByteDance has postponed opening the shop to all sellers, originally intended for early spring, to June at the earliest, people familiar with the matter said. Its actual launch date might get pushed back further because of merchants’ concerns about a possible ban of the app and tepid adoption of live-streaming e-commerce in the U.S.

“A new bottom”: Toronto and Waterloo Region venture funding fell short in first quarter of 2023 (BETAKIT)

Invesco cuts Swiggy valuation by half to $5.5 billion (TECHCRUNCH)

Invesco, which led Swiggy’s previous round, has marked down the Indian food delivery giant’s valuation in its holding to about $5.5 billion, according to a filing.

This revised valuation, as of January 31, 2023, represents a striking 48.6% decrease from the $10.7 billion valuation Invesco had previously attributed to the startup during a funding round the Atlanta-headquartered firm led last year.

How startups can better manage their e-waste (BETAKIT)

The life cycle of electronics needs to be re-envisioned, said Electronic Recycling Association (ERA) managing director Andrew Wesolowski, especially if we want to sustain the environment we inhabit.

Wesolowski said startups are the target businesses the ERA aims to help with the equipment it repurposes, as they "typically would not have much to discard since they are just entering the market."

Once darlings of investors, Africa’s B2B e-commerce startups are struggling to survive (REST OF WORLD)

B2B e-commerce startups were once favorites of VC firms in Africa. Flush with funds, they offered deep discounts to their customers and built asset-heavy businesses.

Due to the global startup funding slump, B2B companies are ending discounts, rescinding expansion plans, and laying off employees to stay afloat.

BC venture deal volume reached a three-year low in first quarter of 2023 (BETAKIT)

Autonomous delivery startup Nuro to lay off 30% of workforce (TECHCRUNCH)

Autonomous delivery robot startup Nuro will lay off 30%, or about 340 employees, across the company as part of a restructuring meant to extend its capital runway, according to the company.

This is the second time in less than a year that Nuro — a darling of the AV world that has raised $2.13 billion — has laid off workers in a bid to cut costs and extend capital runway. In November, Nuro laid off about 300 people, or 20%, of its workforce.

Inflation blamed for decline in mental health of Canadian founders in the last year (BETAKIT)

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The post R|T: The Retail Times – Alibaba logistics arm eyes up to $2 billion Hong Kong IPO first appeared on BetaKit.

Shopify claims best conversion rates among checkout solutions on the market

Charlize Alcaraz — Thu, 18 May 2023 18:36:24 +0000

Shopify claims it has the best percentage of website visitors buying something, or conversion rates, among other e-commerce companies that offer checkout solutions.

Shopify said it has worked with a “Big Three global management consulting firm” to study the checkout services of major commerce platforms. Shopify did not disclose the firm’s name.

The review found that Shopify’s overall conversion rate outpaces its competitors by up to 36 percent after comparing the Canadian tech company’s performance with Salesforce, Magento, and BigCommerce.

Shopify processed over half a trillion dollars of gross merchandise value in 2022.

Shopify first introduced its instant checkout solution, Shop Pay, at its developer conference in 2017. Shop Pay is meant to make checkouts easier by reducing the amount of information that a customer needs to provide.

Customers can sign up for a Shop Pay account, which stores all of their credentials to allow for quicker payments in future purchases. This reduces the checkout process to one click, which Shopify said is four times faster than checking out as a guest customer.

Shopify made Shop Pay available to businesses outside of its ecosystem in 2021, extending the service to any organization selling on Facebook or Google.

In this latest study, Shopify claims its Shop Pay product can raise conversion rates by up to 50 percent compared to guest checkout methods. Additionally, Shopify claims that Shop Pay’s conversion rates are 10 percent higher than other accelerated checkouts.

Shop Pay has placed Shopify in more direct competition with retail tech giants like PayPal and Amazon. However, both those companies’ accelerated checkout solutions have been in the market longer than Shopify’s product.

PayPal launched its Express checkout functionality in 2005, for example, extending that feature to mobile devices in 2010. Amazon made its one-click checkout technology available to customers in 1997.

In 2022, Shopify processed over half a trillion dollars of gross merchandise value and supported 561 million unique online shoppers. At its peak holiday sales event that year, Shopify’s checkout solution processed $3.5 million in sales per minute.

Since then, Shopify made several updates to its checkout process, like optimizations in button display and field order, as well as more significant changes, like adding the ability to complete purchases on one page.

The post Shopify claims best conversion rates among checkout solutions on the market first appeared on BetaKit.

Lightspeed Commerce makes gains in fiscal 2023, fourth quarter

Charles Mandel — Thu, 18 May 2023 18:00:12 +0000

After a tough third quarter, Lightspeed Commerce’s fourth quarter and fiscal year 2023 results should bring some relief to the e-commerce company.

For fiscal year 2023, Lightspeed reported total revenues of $984 million CAD ($730.5 million USD) up from $748.3 million CAD ($548 million USD) in 2022.

Even while it was making gains on the revenue side, the company also cut its losses. Lightspeed posted an adjusted EBITDA loss of $5.7 million ($4.3 million USD), down from $26.5 million CAD ($19.7 million USD) in the previous year.

Lightspeed signed a four-year contract renewal with renowned retailer Saks Fifth Avenue.

“Our adjusted EBITDA loss this quarter came in significantly better than our previously established outlook and shows ongoing progress towards our goal of adjusted EBITDA break even or better for fiscal 20241,” said Asha Bakshani, CFO of Lightspeed.

For the upcoming fiscal year, Lightspeed is focused on accelerating adoption of its financial services and reaping the benefits of its simplified product portfolio, said Lightspeed’s CEO, JP Chauvet.

By focusing on its two flagship products, Lightspeed Retail and Lightspeed Restaurant, Lightspeed expects to increase adoption of its solutions among more complex merchants, improve sales productivity and increase the pace at which it can create new products and features that drive value for customers, according to the company.

In the fourth quarter, Lightspeed reported total revenue of $248.9 million CAD ($184.2 million USD), an increase of 26 percent from the previous quarter. The company also drove down its net loss to $103.3 million CAD ($76.5 million) from $154.7 million CAD ($114.5 million USD).

Some of the notable customer wins for the quarter included Rosie O’Grady’s, one of the busiest restaurants in New York’s Times Square, which selected Lightspeed Restaurant and Payments to power their steak and seafood restaurant; Apricot Lane, a leading California-based women’s fashion franchise, adopted Lightspeed Retail and Payments; and La Mère Germaine, a Michelin star restaurant in Châteauneuf-du-Pape, France, adopted Lightspeed Restaurant and Payments to operate their acclaimed establishment. As well, Eastern National, operator of 127 gift shops across America’s national parks, signed on for Lightspeed Retail; and Lightspeed signed a four-year contract renewal for Lightspeed B2B with renowned retailer Saks Fifth Avenue.

The company combined its point-of-sales, payments and e-commerce technology in 2022 into a retail commerce platform called Lightspeed Retail. In turn, the platform uses the tech and expertise from New Zealand-based retail software startup Vend, and Californian e-commerce firm Ecwid, two companies it acquired in 2021 for a collective $850 million USD in cash and stock.

The company also launched its Lightspeed Restaurant offering earlier in 2022. In the same way as Lightspeed Retail, that platform was built on the technology of a number of acquisitions, including United States-based Upserve, Germany’s Gastrofix, Australia-based Kounta, and Switzerland’s iKentoo.

In terms of its forecast for fiscal 2024, the company exercised caution, citing the economic climate, including changes in consumer spending impacting several of Lightspeed’s retail verticals.

Nonetheless, Lightspeed expects increased revenue growth as the year progresses and customers are onboarded to Lightspeed Payments, and the company begins to see the benefits of added volume processed through its embedded payments solutions.

Lightspeed expects to incur some incremental costs in the first part of the year as part of the program launch. These include hardware subsidies, technical support and contract buy-outs. These costs are estimated to amount to approximately $12 million in the aggregate for the fiscal year.

The company is predicting revenues of approximately $875 million to $900 million USD, with growth stronger in the second half of the year. It also forecast break even or better adjusted EBITDA, inclusive of the costs incurred for the unified payments initiative.

Founded in Montréal, Canada in 2005, Lightspeed is dual-listed on the New York Stock Exchange (NYSE: LSPD) and Toronto Stock Exchange (TSX: LSPD). With teams across North America, Europe and Asia Pacific, the company serves retail, hospitality and golf businesses in over 100 countries.

The post Lightspeed Commerce makes gains in fiscal 2023, fourth quarter first appeared on BetaKit.

1Password launches passkeys for businesses as shift to passwordless picks up

Charlize Alcaraz — Thu, 18 May 2023 15:41:13 +0000

1Password is bringing passkeys to businesses with a new standalone product named “Passage.”

With this new offering, the Toronto-based startup picks up its pace in the shift to the next generation of authentication. According to 1Password, Passage signals the company’s expansion beyond credential management and into helping organizations manage customer identities.

Over half of American consumers have abandoned carts due to difficulty managing passwords.

Founded in 2005, 1Password has long focused on its namesake, developing solutions for managing passwords. Over the past year however, the company has shifted its sights to a “passwordless future.”

Alongside Google and other tech giants like Apple and Amazon, 1Password is part of the FIDO Alliance, an open industry association whose mandate is to help reduce the world’s reliance on passwords.

Google started rolling out passkeys for its account users two weeks ago. 1Password CEO Jeff Shiner called the move a ‘tipping point for passkeys and making the online world safe.”

Passage comes from 1Password’s subsidiary of the same name. 1Password acquired Passage last year to develop passkey-first authentication for consumer-facing businesses.

This new product, named after the company it’s created from, allows businesses to implement passkeys for their apps and websites without their own authentication infrastructure.

Compared to traditional passwords, passkeys are said to be more resistant from phishing and hacking as there wouldn’t be user credentials for bad actors to steal. With passkeys, users only need their personal device that can authenticate their identities using a face scan or fingerprint.

For passkeys to be widely adopted however, Shiner said users need options, with the “ability to choose where and when they want to use passkeys so they can easily switch between ecosystems.”

Research from the FIDO Alliance found that more than half (58 percent) of American consumers have abandoned carts and stopped their purchases due to difficulty managing passwords.

According to head of passwordless at 1Password Anna Pobletts, who co-founded and was CTO of Passage, companies can use passkeys to provide a more secure login experience, increase user engagement, and save on support costs.

1Password’s Passage product is offered in two ways: Passkey Complete is a passwordless authentication and identity management platform that can be integrated into all major platforms, browsers and devices. Passkey Flex, on the other hand, allows companies to add passkeys to their existing authentication infrastructure over time as customer adoption accelerates.

Both solutions allow businesses with up to 1,000 monthly active users to sign up and try them for free. Companies with more than 1,000 monthly active users will pay based on their usage.

Featured image courtesy 1Password.

The post 1Password launches passkeys for businesses as shift to passwordless picks up first appeared on BetaKit.

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The two Canadian cities rising in Startup Genome’s global ecosystem rankings

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CANADIAN TECH EVENT ROUNDUP

Latest Funding, Acquisitions, and Layoffs

VAN – Vanhack – $3M (read more)

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CGY – Kibbi – $1.1M (read more)

CGY – OneVest – $17M (read more)

TOR – Micharity – $7M (read more)

TOR – Ontario Genomics unveils eight startups receiving $150K (read more)

HFX – QuickFacts – $1.13M (read more)

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Apple’s Vision Pro won’t make the metaverse happen

Tribe Network launches $20-million VC fund to invest in early-stage stage businesses led by people of colour

Startup Train returns as Startupfest 2023 announces over $300,000 in prizes

Best of the Fest

Women in Tech

Black Entrepreneur

The Grandmothers’ Choice Award

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Synthetic biology startup Ardra is brewing up big plans with its fermentation technology

H|T: The Healthtech Times – Twig Fertility secures funding, Bunnii shuts down

Rhino Ventures leads Twig Fertility’s $8 million Series A to improve fertility experience with tech (BETAKIT)

Founder of Sexual Wellness Startup OneTaste Charged With Exploiting Abuse Victims (BNN BLOOMBERG)

AlayaCare founder, Alberta Innovates and Strata Health Solutions executives honoured at e-Health Conference (BETAKIT)

GetHarley, a skincare telehealth and consultation platform, raises $52M (TECHCRUNCH)

Here’s how Canada’s top 10 cities rank in the global startup ecosystem (BETAKIT)

Helium Health gets $30M, backed by AXA IM Alts and 23andMe’s Anne Wojcicki (TECHCRUNCH)

FemTherapeutics raises $2.5 million CAD to address pelvic floor disorders with custom vaginal prosthetics (BETAKIT)

Fertility startup Bunnii shutters after failing to secure funds (AXIOS)

York University partners with OneEleven to launch joint venture studio for new tech MBA degree (BETAKIT)

Carbon Health is already using AI to write patient records (STATNEWS)

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Someone built a guide to all the Collision afterparties

Canada invests $25 million in a new program to address barriers for 2SLGBTQI+ entrepreneurs

Micharity targets US expansion for its charitable fundraising platform with $7 million Series A

Toronto-Waterloo, Vancouver, and Montréal hold the fort as Calgary and Ottawa rise in Startup Genome’s latest global ecosystem rankings

Kibbi, a job-finding app for newcomers created by a newcomer, raises $1.1 million CAD

R|T: The Retail Times – Shopify uses new weapons in battle against patent trolls

Shopify plans to “aggressively pursue” ID of funders in cases against “patent trolls” (BETAKIT)

TikTok Seeks $20 Billion E-Commerce Business Despite US Setback (BNN BLOOMBERG)

Saskatoon startups Rivercity, 7shifts team up to enhance food temperature monitoring for restaurants (BETAKIT)

India’s open e-commerce network expands to B2B transactions (TECHCRUNCH)

Here’s how Canada’s top 10 cities rank in the global startup ecosystem (BETAKIT)

Tim Hortons to launch credit card through mobile rewards app (TORONTO STAR)

York University partners with OneEleven to launch joint venture studio for new tech MBA degree (BETAKIT)

Curri nabs $42M for its construction-focused last-mile logistics platform (TECHCRUNCH)

Shopify facing $130-million lawsuit for alleged attempts to slash post-layoffs severance pay (BETAKIT)

Exclusive: Giannis Antetokounmpo and family invest in Candy Funhouse (AXIOS)

Blatant tech frauds run amok on the biggest online marketplaces (ARSTECHNICA)

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Shopify partners with Volt to offer open banking solutions (but not in Canada)

Cohere is the highest ranking Canadian startup on Bessemer’s top 100 deeptech companies

Automotive software maker LeddarTech inks SPAC deal to go public on Nasdaq

Water sampling, agtech startups among Ontario Genomics’ first cohort for BioCreate program

Collision whispers, new AI officer, fundraising landscape the talk of Vancouver Startup Week 2023

The more tech conferences, the merrier?

Vancouver to hire chief AI officer, AI expert approves

Raising capital in 2023: “we are at the precipice of a recession”

Calls for Canada’s cleantech sector to respond to disruption by US Inflation Reduction Act

A|I: The AI Times – Microsoft is moving top AI experts from China to Canada

Cohere announces $270-million USD Series C from Inovia, Nvidia, Oracle, Salesforce (BETAKIT)

Microsoft to move top AI experts from China to new lab in Canada (FINANCIAL TIMES)

EvenUp raises $50.5 million in Clio-backed round for AI that turns raw files into legal documents for personal injury lawyers (BETAKIT)

Europe wants platforms to label AI-generated content to fight disinformation (TECHCRUNCH)

Vietnam’s FPT and Quebec’s Mila renew three-year strategic partnership, vow to practice responsible AI (BETAKIT)

14 Charts That Tell the Story of AI Right Now (NEWCOMER)

Meta plans to put AI everywhere on its platforms (AXIOS)

Here’s how Canada’s top 10 cities rank in the global startup ecosystem (BETAKIT)

Apple’s Journal app needs to read the room (THE VERGE)

York University partners with OneEleven to launch joint venture studio for new tech MBA degree (BETAKIT)

Nvidia’s AI software tricked into leaking data (FINANCIAL TIMES)

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Rollout of Canada’s Real-Time Rail payment system delayed again as project undergoes second review this year

Dapper Labs makes investment in Web3 gaming company GameOn

Following Alberta launch, insurtech QuickFacts raises $1.13 million CAD to expand across Canada

Informal Systems raises $5.3 million in first funding round
(THE BLOCK)