Disrupt or be disrupted
Tech ecosystems aren’t just for startups, and they aren’t even just for tech companies. A new age of hyperconnectivity is transforming all aspects of business in every sector, and nowhere are the winds of change more bracing than inside big, established corporations. That’s why, if you visited the Communitech Hub on Oct. 13, you might have spotted David Thomson, head of Canada’s most accomplished business family and the country’s wealthiest citizen, at the launch of Thomson Reuters Labs. As Communitech’s newest enterprise partner, Thomson Reuters has taken up space alongside the labs of TD Bank Group, Canon, Canadian Tire, Deloitte and Manulife, where it will work with local startups on mining its vast datasets for untapped value.
The global media and information giant’s arrival, which coincided with Techtoberfest, is a testament to large companies’ determination to adapt through leaner, more agile approaches as outlined by Communitech CEO Iain Klugman in a post last month. TD Bank Group, meanwhile, marked the first birthday of TD Labs at the Hub, and celebrated the opening of the bank’s new technology centre in Waterloo.
Toronto-Waterloo corridor
The presence of Canada’s largest corporate brands in the midst of its most dynamic startup ecosystem will no doubt help to build closer ties between the tech communities of Toronto and Waterloo, which will be critical to creating an innovation corridor of global significance. Iain Klugman and BMO’s Kevin Lynchlaid out the necessary steps in a Globe and Mail op-ed. One of those steps is better physical connectivity, which we highlighted in our interview with Toronto Mayor John Tory and others during the CityAge conference.
Opinions on Canada’s innovation future were in abundant supply during October, as a game-changing federal election played out. They ranged from a forceful call from Jim Balsillie, supported by John Ruffolo of OMERS Ventures, for Canadian tech companies to lobby governments much more aggressively, to an equally vehement call, from tech commentator Mark Evans, for Prime Minister-elect Justin Trudeau to steer clear of big new initiatives to help startups.
Venture capital
On one key measure, there was no dispute: Venture capital activity continued to soar in the third quarter, giving Canada its best nine months since 2001, with $1.95 billion invested in 406 deals.
As if to bolster the point, Waterloo drone-maker Aeryon Labs announced a $60-million raise late in the month, which will effectively double its local footprint as it scales production of its small unmanned aerial systems. CEO Dave Kroetsch told Communitech News the company’s Canadian location has been a strategic advantage due to more permissive regulations and top talent. VCs themselves are no doubt finding advantage in Canada's tech sector, as outlined in this Financial Post story from earlier in October.
Compass report
A string of growth-stage investments this year, in companies such as Aeryon, Kik, Miovision, Vidyard and Clearpath Robotics, bodes well for the future of Waterloo Region’s startup ecosystem, a detailed study released by Compasslate in the month suggests. The 69-page follow-up to July’s Global Startup Ecosystem Report cited our startup density – second in the world behind Silicon Valley’s – and top-quality tech talent among key strengths. But it also pointed out some impediments to growth, such as a shortage of seed and Series A funding and a too-slow approach to U.S. customer development, a crucial component to our startups’ ability to scale globally.
Others weighed in on the early-stage funding crunch during October, including Randall Howard of Verdexus Capital, who argued in the Globe and Mail for improved tax incentives for angel investing, and Cisco Canada President Bernadette Wightman, who attributed the country’s lack of billion-dollar companies, or unicorns, to a dearth of investment for young startups.
Shopify
An exception is Shopify, the Ottawa-based e-commerce software juggernaut whose CEO, Tobi Lütke, spent an action-packed day in Waterloo Region at the start of the month. Lütke announced plans for a 300-person Waterloo office for the company’s Shopify Plus enterprise platform, making Shopify the latest large tech firm to capitalize on the high-quality talent pool in Waterloo Region.
Ecosystem
Others have their own reasons for moving to Waterloo Region. Max Doucet-Benoit is one of them; he recently left decidedly more cosmopolitan Montreal to take up a post with Igloo Software’s Kitchener operation, and is happy with the move.
Of course, the fast-growing innovation district in downtown Kitchener is precipitating other effects, chiefly gentrification and all that it brings, for better or worse. Joseph Fung of NetSuite weighed in on the subject with a thought-provoking piece, challenging his fellow tech leaders to face up to the potential downsides of the change they’re bringing to the region’s core.
For its part, the Working Centre, a downtown Kitchener non-profit agency that helps underemployed people, has launched a program to help people under 30 to improve their marketability in tech-related fields. The agency would love to hear from companies willing to help out.
In other news
- Peter Moreira of Maritimes-based tech blog Entrevestor offered insights into Ontario’s ecosystem after a month spent in Waterloo Region.
|
