Addressing the 600-pound beaver in the room

Plus: Koho’s banking roadmap, GreenSky’s rarified air.

Shopify’s Harley Finkelstein kicked the hornet’s nest at Elevate’s opening night when he called for “injecting more ambition into the Canadian psyche.” The president of Canada’s largest tech company noted that our collective unwillingness to go for gold is “the 600-pound beaver in the room.”

That bon mot quickly became a straw man for many in the ecosystem to bludgeon with their favorite pet grievance. Innovation Minister François-Philippe Champagne co-signed the sentiments onstage at Elevate days later, allowing CCI president Ben Bergen another opportunity to lay blame at the feet of the feds’ innovation policy. Others, like VC Laura Lenz, pointed the finger away from founders to issues of support and structural disincentives. A quick spin of your favorite social network was sure to find thought leaders who could explain everything wrong with Canada in one simple chart.

I would be more frustrated if BetaKit wasn’t partially responsible. Finkelstein said the same thing on The BetaKit Podcast two months ago, and his co-worker Tobi Lütke called ambition “a problem” at our Town Hall in May. We regularly write about the impact of taxation, capital, procurement, and government policy on ‘the ecosystem.’ Measured concern is BetaKit’s love language.

So why the sudden brouhaha? Elevate MC Amber Mac, who was onstage with Champagne, told me the whole thing mirrored a moment in 2018 when our prime minister said Canada needed “more swagger” (at a Shopify event, no less). The comment became Question Period fodder because proper levels of Canadian ambition only seem to be a going concern when elections are looming.

Look, we need to get smarter about separating analysis of the macro from empathy for the micro experiences companies face. It is true that many serious, complex challenges lie before our country; it is also true that any founder griping about the state of play as an alternative to navigating it is expediting the death of their business. Discussing one does not invalidate the other.

To succeed on the global playing field, ambition is necessary. It’s not enough. Canada’s current inability to parse the conversation we need to have from the conversations we keep having will lead to fewer entrepreneurs, fleeing talent, and a generation of Canadians left only with hard choices.

If you have a chart that explains why I’m wrong, send it to me.

Douglas Soltys
Editor-in-chief

Meet Naamah. Uber is helping her move forward.

Uber has come a long way since its first trip in Toronto in 2012 – but it has the same mission to drive positive change. Today, it continues to help people like Naama get where they need to be safely and conveniently.

Uber is becoming a zero-emission mobility platform, advocating for positive change for drivers, and working with UFCW Canada, the country’s largest private-sector union. Whether it is getting home from work, getting to the airport, or discovering a new restaurant, Torontonians know they are able to rely on Uber.

Learn more about how Uber is moving Toronto forward.

TOP STORIES OF THE WEEK

Koho secures $190 million CAD in equity and debt to bolster banking license efforts

Toronto-based Koho Financial has raised a $190 million CAD round of debt and equity funding as it continues its efforts to secure a Schedule 1 banking license.

The $40 million equity financing was led by PROPELR Growth with participation from return investors Drive Capital, TTV Capital, and BDC Capital. New York-based Rockefeller Capital, founded by oil baron John D. Rockefeller, also participated in the round as a new investor.

But speaking onstage at Elevate with BetaKit, Koho CEO Daniel Eberhard said he’s not betting the company on a banking license.

GreenSky’s $15-million first close of Fund VI puts VC companies in rare company

The first close of Toronto-based GreenSky Ventures’ sixth fund puts it in the 99th percentile of all Canadian venture capital firms over the past decade.

According to recent research from RBCx, only one percent of Canadian VC firms have graduated to a sixth fund (excluding all opportunity, continuity, and alignment funds) over the last 10 years.

“It used to be lonely being Indigenous in tech.” How one tech founder’s question led to a community of hundreds

A series of conversations that sprung from one question soon evolved into a vibrant community of more than 340 Indigenous tech leaders, founders, and professionals spread geographically across Turtle Island.

The Indigenous Tech Circle, which officially became a non-profit entity on National Indigenous Peoples Day, now includes hundreds of members spread across the United States and Canada.

The journey to organizing the Circle started with one question: where are the Indigenous tech people?

Loss of DoorDash partnership prompts Payfare share price plummet and strategic review

Payfare is initiating a strategic review of the company after losing the business of its largest customer.

The Toronto-based earned wage access company announced last week that DoorDash had decided not to renew its agreement with Payfare, which was powering the food delivery app’s DasherDirect program.

Payfare called the prepaid debit and mobile banking app for DoorDash’s delivery workers its largest program, adding that the revenue derived from the program was a “substantial proportion” of its total revenues.

Fujitsu launches Cohere-powered Japanese LLM for enterprise use

Japanese IT services company Fujitsu has launched Takane, a Japanese-language large language model powered by Toronto-based enterprise artificial intelligence startup Cohere.

The new LLM is a product of a partnership struck between the two companies earlier this year, in which the companies agreed to develop a Japanese LLM for private cloud usage. As a result, Fujitsu made “a significant investment” into Cohere’s $500 million USD ($687 million CAD) Series D round in July.

BetaKit has your front-row seat to Elevate

Miss the buzz at Elevate this week? We’ve got the goods to cure your festival FOMO.

From the startups that took home big wins to can’t-miss insights from the FinTech stage we programmed, plus NACO’s latest program launch—three days of Canadian tech insights and developments, distilled into what you need to know.

What to expect from Zoholics Canada 2024

How do you make sure your tools can scale as fast as your business?

Zoho believes the answer is simple: grow together.

That’s the focus of Zoholics Canada 2024, Zoho’s flagship user conference taking place at Montréal’s Palais des Congrès from October 8 to 9. The event will bring Zoho users, industry leaders, and tech experts together for two days of learning about how Zoho has evolved its products to meet the evolving needs of businesses.

The greatest threat to startups today is playing it safe

‘Cut costs. Save cash. Get lean.’

For the past two years, these mantras have echoed across boardrooms as investors urge startups to pull back on growth and double down on unit economics.

Until recently, Maria Pacella, managing partner at Pender Ventures, was admittedly one of those voices. But in the last few months, she’s changed her tune.

Ready to Elevate Your IP?

ElevateIP is here to help startups strengthen the development, understanding, and protection of intellectual property (IP). Powered by an investment from the Government of Canada, this program is designed to help you maximize your IP potential and stay ahead of the competition.

Communitech, alongside Invest Ottawa and North Forge, proudly delivers ElevateIP to startups across Ontario, Manitoba, and Saskatchewan. Ready to level up your IP strategy? Learn more and get involved today!

Funding, Acquisitions, and Layoffs

VAN – Nano One – $17.8M CAD
CGY – Orpyx – $26.9M CAD
TOR – Propel Holdings to acquire QuidMarket for $95.9M CAD
MTL – Audensiel acquires Maltem Canada for an undisclosed amount
NFL – Sparrow BioAcoustics – $10M

The BetaKit Podcast

Can Wealthsimple build Canada’s largest financial institution?

“I think we’re going to build the largest Canadian financial institution. That is a giant opportunity, and our focus on delivering that in Canada has helped us grow way faster.”

Ten years in, Wealthsimple is profitable with $50 billion in AUA. How did the company get here and what comes next? Co-founders Brett Huneycutt (CPO) and Mike Katchen (CEO) join for a special birthday podcast.

The SAAS NORTH Agenda is LIVE!

Get ready for Canada’s biggest in-person SaaS community event, featuring a tactical agenda packed with in-depth sessions designed for founders, investors, and teams. Explore actionable strategies to scale your SaaS business and hear from Canada’s most successful CEOs.

Don’t miss out on this incredible opportunity to grow, learn, and connect at SAAS NORTH!