Government provides wrong kind of help, tech startups say

Edmonton entrepreneurs are calling for the city to distance itself from startup tech companies and restructure the way it provides support.

Residents from local businesses stressed they don’t have the right financial backing and aren’t being taken seriously by the city and the Edmonton Economic Development Corporation (EEDC), in response to a series of reports presented Monday morning.

“I don’t think the government has a major role in the support of innovation because innovation is driven by the market not by government agencies,” said Scott Edgar, a co-founder of Aris MD that specializes in augmented and virtual reality technology used for surgery. “I’m not sure the EEDC needs to be taking a role in this process.”

Edgar and fellow Aris MD founder Chandra Devam said rather than services, they would like for the city to offer grants that would allow entrepreneurs to attend major innovation conferences and build relationships outside of Edmonton.

“We need to be the Edmonton brand ambassadors at these events,” Devam said.

The city is looking into the creation of an “innovation corridor” to act as a hub for startup companies as well as additional services through the EEDC. But the tech representatives are adamant the city has “missed the boat” and there needs to be a shift in the relationship between innovation and government.

Startup Edmonton is currently housed in the Mercer Warehouse downtown and the entrepreneurs said they have no interest in relocating.

“There are things the city can do to ease the burden of startups and help them grow. The current system just doesn’t do that,” said Kam Nemec, CEO of GreenGreen, noting the need for financial support through venture capital and not additional real estate.

“The support network’s just not there. Lower some of those barriers to entry, subsidize travel expenses ... if (the city) can help support those two things and get out of the way for the rest, I think we can take it from there.”

Coun. Mike Nickel agreed with the frustrated entrepreneurs that the city should take a back seat and let the startups survive or fail on their own.

“They’re saying government’s getting in the way. Particularly (EEDC),” said Nickel, arguing the city should provide assistance for a value proposition and putting startups in the right direction, but that should be it.

“It’s up to them to close the deal. It’s not our job as government.”