Ottawa announces almost $15 million for six Toronto tech firms.
The federal government is set to give about $15 million in interest-free repayable funding to six Toronto-based tech firms that work in sectors the minister of economic development considers integral to recovery from COVID-19.
Minister Mélanie Joly, announcing FedDev Ontario Investment of $14.6million on Wednesday, stated that it is expected to “support the long-term growth” of the six companies.
It was emphasized in Wednesday’s press release that the pandemic revealed the need for technology and the importance of accelerating existing technological shifts. However, the sustained volatility of the economy makes it harder for many Canadian startups to access venture capital.
“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 benefitting from the fund are: EnergyX solutions Inc. (receiving $500K), Humi Holdings Corp. (receiving $1.9m), Kepler Communications Inc. (receiving $3.8m), Nulogy Corp. (receiving $3.4m), Opus One Solutions (receiving $3m) and Sensibill Inc. (receiving $2m).
These six companies have their focus on technologies that include robotics, artificial intelligence (AI), cloud-based solutions and nanosatellites. Most of them are also leaders in their industry, which is why the government considers it vital to help keep them competitive with their international peers, as well as encourage them to stay and grow in Canada.
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