Innovation in Canada will be seriously compromised unless domestic venture capitalists start throwing big bucks into Canadian firms, suggests a new report. Big funding is one of the secrets of success of US firms, whether in Silicon Valley, or in other technology hubs in the rest of the US. In contrast, it is a challenge to get large funding tranches from Canadian VCs.
Topic: Venture Capital
Among the innovation-related initiatives announced in Budget 2017 is Innovative Solutions Canada, a $50 million program inspired by the US Small Business Innovation Research (SBIR) program. Recent research has shed new light on the effectiveness of the US SBIR program, and suggests that Canada may be able to design a superior program by offering modest levels of support to young companies in emerging sectors, and letting the private sector fund provide follow-on financing.
A report from the University of Toronto’s Impact Centre is calling for a data-driven approach to maximizing the government’s investments in Canadian firms and growing them to be world-class. The report — Government Venture Capital: Can the Public Sector Pick and Nurture World Class Companies? — says that the strategy for venture capital investments of the Canadian government is not to simply copy what venture capitalists in Silicon Valley are doing.
Fusion Pharmaceuticals Inc, a spin out of the Centre for Probe Development and Commercialization (CPDC), has secured US$25 million in series ‘A’ financing to support and accelerate development of new next-generation therapeutics that precisely target cancer cells.
Vancouver and Bozeman MT-based -based Microbion Corp has received US$25-million in venture capital to further develop its lead compound for the treatment of antibiotic-resistant infections. The funding is being provided by the Global Health Sciences Venture Fund, a US$500-million joint venture between Vancouver’s Quark Venture Inc and GF Securities, a Hong Kong-based investment bank. The…
Ottawa-based Klipfolio has received $12 million in series ‘B’ financing from an investment syndicate led by OMERS Ventures to further develop its cloud app for building and sharing real-time business dashboards on web browsers, TV monitors and mobile devices. Described as a pre-emptive insiders round, the financing is the largest the company has received to…