Government investing in Toronto tech firms
Forward-thinking businesses to receive almost $15 million for federal venture capital funds
The federal government is giving almost $15 million in interest-free repayable funding to six Toronto-based tech firms involved in sectors the minister of economic development says will be integral to the recovery from COVID-19.
Minister Mélanie Joly announced Wednesday a FedDev Ontario investment of $14.6 million to “support the long-term growth” of the six companies.
According to Wednesday’s news release, the pandemic has highlighted the importance of technology and accelerated existing technological shifts. But the economy is still volatile, said Joly, and venture capital is harder to come by for many Canadian startups right now.
“We know that Toronto is extremely strong when it comes to tech … and we know right now that venture capital is difficult to find,” said Joly in an interview. “So, we need to step up as a government to help our startups to scale up.”
The six companies are involved in technologies that include robotics, artificial intelligence (AI), cloud-based solutions and nanosatellites. Many are front-runners in their fields, said Joly, which is why it’s important for the government to help keep them competitive with their international peers, as well as encourage them to stay and grow in Canada.
The government also hopes that the funding, the first round for many of the
startups, will result in an estimated $40 million more in private investment to help these companies grow, Joly said.
“We’re creating jobs, and that’s good news,” she said.
One of those companies is EnergyX Solutions Inc., which is receiving $500,000 to expand its customer base and increase automation; the company uses AI to measure and analyze a building’s energy usage and find ways to improve its performance, with the aim of lowering carbon emissions while also reducing costs for building owners and residents.
“It’s an exciting time in energy efficiency because AI and data science allow us to perform these analyses instantaneously and at scale,” said EnergyX cofounder and CEO Nishaant Sangaavi in a news release.
Humi Holdings Corp. is receiving $1.9 million to build its capacity and expand its customer base; Humi integrates human resources, payroll, staffing and other functionalities into a single cloud-based platform for small and medium enterprises.
Kepler Communications Inc. is receiving $3.8 million to “set up an advanced, nanosatellite manufacturing facility, making it the first Canadian company to mass-produce nanosatellites,” according to the news release.
The company, which originates from the University of Toronto, specializes in satellite production and telecommunications infrastructures, and recently became the largest operator of nanosatellites based in Canada, said the release.
For Nulogy Corp., which provides software for packaged goods companies, there’s $3.4 million to help develop its supply chain management software and “focus on export development,” said the press release.
Opus One Solutions gets $3 million to help commercialize its AI-powered electric grid management platform for utility companies.
The company bills itself as “North America’s first cloudbased platform that provides software solutions for the electric utility industry,” the release states.
“This funding support further fuels our mission to provide global utility customers with innovative energy solutions that digitize energy systems and accelerate decarbonization with smarter energy networks,” said Opus One president and CEO Joshua Wong in the news release.
Sensibill Inc., which scans and digitizes receipts for consumers, freelancers and small business owners, will receive $2 million to support an expansion over three years into new international markets.
The funding is expected to create 128 skilled jobs, according to the news release.
In 2019, CBRE Group Inc. ranked Toronto as the fastestgrowing technology market in North America, and as the third top market for tech talent.