In an effort to retain the country’s top tech entrepreneurs, two initiatives have been launched that may invest millions into promising fintech start-ups.
Two venture capital funds unveiled very recently—Diagram last Tuesday and NextAI on Wednesday—are looking to help grow local tech talent through seed funding and mentorship.
According to
Reuters, over 300,000 Canadians are currently working in Silicon Valley.
“A lot of people are looking to come back, but it’s hard to find the right backing and opportunity in Canada,” Francois Lafortune, CEO and founder of Diagram, told
Reuters. “Canada must get this right. There are too many jobs at stake.”
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Diagram hopes to nurture potential tech start-ups, particularly those in the insurance, financial services and healthcare sectors. The fund will offer as much as $5 million in seed financing for a venture. The fund is backed by fintech venture fund Portag3 and many angel investors. Paul Desmarais III of the influential Desmarais family was tapped to serve as chairman of Diagram.
The other initiative, NextAI, is looking to fund those who have promising concepts on how artificial intelligence can be used to solve major problems.
“The next generation of students coming out of school and coming out of graduate school around the world - we want them to lock on to an ecosystem here,” Royal Bank of Canada chief executive Dave McKay said at a launch event. “I think Silicon Valley does a better job of providing that [ecosystem] right now.”
NextAI’s founding corporate partners include RBC, Magna International Inc, Bank of Nova Scotia and BDC Capital. The venture fund will provide up to $200,000 to as many as 20 teams, both in Canada and abroad.
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