9 notes: Does it matter who BC’s new innovation minister is?
It depends.
In case you missed it, Diana Gibson, a first-time MLA and former executive director of the Greater Victoria Community Social Planning Council, has been appointed as BC’s new Minister of Jobs, Economic Development, and Innovation (JEDI). This means Brenda Bailey, a popular figure in the tech community, is no longer in the role. Instead, Premier Eby has made her Minister of Finance.
- There are two ways to look at this: You could argue that shifting Bailey out of JEDI—and appointing a rookie MLA—signals that innovation is no longer a priority for Eby. (For the record, I think this take is unfair to Gibson, who brings experience as a senior executive and entrepreneur.)
- Alternatively, you might see this as a win. Bailey, arguably BC’s biggest tech advocate and a legitimate tech founder herself, now holds the province’s purse strings. Some in the industry will welcome that.
- Still, it’s worth asking the same questions I posed when Bailey was appointed to JEDI in 2022: How much will she be allowed to follow her entrepreneurial instincts and get things done? And to what degree will she crash up against the rugged internal walls of bureaucracy that every government specializes in building? To be continued.
- Who’s raising capital, and who’s writing cheques? According to CVCA’s Q3 data, $2.65 billion was invested in Canadian startups this quarter—a six percent increase from Q2 and a 51 percent jump year-over-year. On the surface, this seems like good news.
- But here’s what my friend Erin Gee calls an “alarming data point,” as noted in BetaKit: Clio, a Vancouver-based legaltech company, raised $1.24 billion CAD in a Series F round, funded entirely by American investors. That one deal accounted for 47% of all venture dollars raised in Canada during Q3.
- This raises eyebrows for a couple of reasons: How dependent is Canada on U.S. capital?
- Is there even more U.S. money flowing quietly into Canadian startups that doesn’t show up in reports like CVCA’s? That argument was made to me by a local investor when I shared that a banker I know was lamenting a “slow market.” This investor countered, “It’s only slow for those who are not properly connected to American investors.”
- Is there a growing pool of “missing money” in CVCA’s reports—early-stage deals involving U.S. funds that aren't being reported? Did U.S. venture firms account for 47% of all dollars raised in Canada this past quarter? Or more.
- Lastly, a flurry of lists dropped recently. Deloitte’s Fast 50. Globe and Mail’s 400+ Top Growing Companies. CBRE’s Tech-30 2024. Foresight 50. Have you read them yet? Sounds like a job for the analyst on your team.
P.S. Here are some places you can find me over the next few weeks...
- Nov 21: Ignition Thursday at KPMG
- Nov 27: Tech Industry Social
- Dec 3: Startup TNT Investor Community Mixer (invite-only, ping me if you should be there)
- Dec 10: Media Happy Hour
- Startup TNT Happy Hours on Thursdays