Canadian Startups and Funding from China
An issue that exists for university startups in the Tri-City area (Waterloo, Kitchener, Cambridge) is that they receive little funding in the early stages of development. More specifically, the risk capital stands "as a significant pain point for Canadian early-stage companies" (Brown). Currently, Canada has the ability to innovate and proceed into the stages of a startup but many of the small companies hit a road block on their way to their end goal. By removing this issues Canada can further innovate and work to increase its presence in the technology sector. China, has been identified as a good environment to seek out and find investors for university and new startups . Brown explains that "this environment presents tremendous unrealized potential for early and growth-stage Canadian companies that too often struggle to raise money during a critical period". In order to fix this issue smaller companies could make an effort to reach out to Chinese investors. We already know that the Waterloo, Kitchener, Cambridge area has far more of a tendency to search for investors outside f the area. Munro and Bathelt explained in their article that the startups in the Tri-City area had more of a tendency to create networks outside of the cities and especially on a national basis (231). If the region decided to make greater connection with China through university organization the areas could possibly have access to a great source of funding for projects that greatly need it to get off the ground. Brown ends his article by explaining that "Asian partners will be a critical component of Canada’s continued prosperity in the future".
How do you think Asian partners would effect the area and do you think it is likely to happen?
Source (Brown)
Having Asian partners will constitute to a big change in the way the Tri-city area handles innovation. In my opinion, I believe they will be more risk driven than the existing tech companies in the waterloo region in the sense that they will be willing to make more mistakes to get to their end goal.
ReplyDeleteOn the other hand, it is likely to happen but it may not be anytime soon. Though the Waterloo region may be a startup hub, these Chinese partners may more likely go to in the toronto area. Not because Toronto has better startups or engineers but because it is a metropolitan city and more people know of Toronto than anywhere else in Canada. They may want to invest in a place that will ensure publicity.