Michael Katchen

Despite a growing and robust Canadian tech ecosystem, the country has minted fewer than 30 unicorns in the past decade compared to the US's 700. Should Canadian VCs look to invest internationally? If so, what's the optimal approach to accessing global opportunities, navigating financial and cultural differences, and providing meaningful value? Alternatively, should they focus on strengthening the Canadian tech ecosystem? Is the lack of unicorns primarily a cultural, structural, or financial issue, or a combination? Can VCs play a role in addressing these challenges? Happy to participate in the Canadian Venture Capital & Private Equity Association (CVCA) webinar with Mana Hosseini, JD/MBA and Kim Furlong addressing these topics. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Registration link in the comments #venturecapital #startups #investing #canada

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Are you a B2B software startup founder at the very start? Then you have to meet this early-stage investor! This week's findfunding.vc spotlight is on Dominic Lau from Ripple Ventures. He: 🇨🇦 Is Vancouver and Toronto based 🎣 Loves to fish 🎶 Founded the RippleX Fellowship - a platform to help underrepresented founders access mentorship, intros, and the tools to get from idea to revenue to funding Amongst founders, Dominic and his team at Ripple Ventures, including Matt Cohen, are known for being hands-on partners who open valuable networks, navigate challenges together, and assist in closing crucial revenue and funding deals. Make sure to: ✉️ Pitch him at [email protected] 👀 Look into the RippleX Fellowship - they take 10 companies 2x a year through the Founder Fellowship program and also back companies through the Fellow Fund For more, check out our funder spotlight card below along with Ripple Ventures' profile on findfunding.vc (link in comments).

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Canada's Brain Drain is undeniable! 🌍 Why are ambitious Canadian startup founders flocking to the US? 𝗟𝗲𝘀𝘀 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 The US economy is 12.5x larger but its VC industry is 30x larger. In 2023, US VC deals were $150-200 billion while Canada was ~$6 billion. 𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝗙𝗿𝗶𝗲𝗻𝗱𝗹𝘆 𝗖𝘂𝗹𝘁𝘂𝗿𝗲 In the US, speed and risk-taking reign supreme. It's a dynamic environment where ideas rapidly transform into reality, unlike the more cautious pace in Canada. 𝗕𝗶𝗴𝗴𝗲𝗿 𝗠𝗮𝗿𝗸𝗲𝘁 With an economy 12.5x the size of Canada’s, the US offers unprecedented reach and potential for growth. 𝗛𝗶𝗴𝗵𝗲𝗿 𝗧𝗮𝘅𝗲𝘀 Although not the main factor, higher taxes in Canada add to the challenges. Recent hikes in capital gains taxes have not helped. For Canada to thrive in the innovation economy, it's time to tackle these hurdles head-on. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _  Excerpt from a discussion I had with Mark Nashman. Link to the full video in the comments. #startups #venturecapital #investing #Canada #culture

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PTN raw deal data 24/09/2024: Scribenote / $8.2M / Canada / AI-powered medical scribe for veterinarians / Andreessen Horowitz, Inovia Capital, Velocity Fund Pyka / $40M / USA (Alameda, CA) / Autonomous electric aircraft / Obvious Ventures, Piva Capital, Prelude Ventures, Metaplanet Holdings, Y Combinator Invizius / £950k / UK (Edinburgh, Scotland) / Biotech treatments for dialysis patients / Mercia Ventures, Calculus Capital, Syensqo, University of Edinburgh’s Old College Capital, Scottish Enterprise Letta / $10M / USA (San Francisco, CA) / Generative AI / Felicis, Sunflower Capital, Essence VC, Various Angels MetOx International / $25M / USA (Houston, TX) / High-temperature superconducting wire / Centaurus, New System Ventures Jump / €11M ($12M) / France (Paris) / Freelancer benefits / Breega, Index Ventures, Raise Ventures Fal.ai / $23M / USA / AI-generated audio, video, images platform / Andreessen Horowitz, Kindred Ventures, Robin Rombach, Aravind Srinivas mbue / $1.8M / USA (Austin, TX) / AI-first construction tech / Techstars, Geek Ventures, 2045 Ventures, Spatial Capital, Factorial Capital David Energy / $23M / USA (NYC) / Grid technology / Cathay Innovation, Union Square Ventures, Keyframe Capital, Equal Ventures, BoxGroup HavocAI / $11M / USA (Providence, RI) / Autonomous uncrewed surface vessel technology / Scout Ventures, Trousdale Ventures, Outlander VC Kestra Technologies / $8M / France (Paris) / Event-driven orchestration platform / Alven, ISAI, Axeleo Capital, Various Angels Integrum ESG / £3.4M / UK (London) / ESG data insights platform / YFM Equity Partners Sparrow BioAcoustics / $13M / Canada (St. John’s) / Bioacoustic AI technology / Killick Capital, Klister Credit, Pelorus Ventures Vicebio / $100M / UK (London) / Novel vaccines for respiratory infections / TCGX, Goldman Sachs Alternatives, Avoro Ventures, venBio GPDQ / £1.2M / UK (London) / Primary healthcare provider / IW Capital FluoRok / £7.7M / UK (Oxford) / Fluorochemical reagents and battery electrolyte salts / BGF, Green Generation Fund arqu / $10M / USA (San Francisco, CA) / Wholesale insurance brokerage / Crosslink Capital, Intact Ventures, Lightspeed Venture Partners, Foxe Capital, Nationwide Ventures GC Therapeutics / $65M / USA (Cambridge, MA) / Cell therapy-based medicines / Cormorant Asset Management, Mubadala Capital, Andreessen Horowitz Bio + Health Alan / €173M / France (Paris) / Health insurer / Belfius Bank, Teachers’ Venture Growth, Temasek, Coatue, Lakestar Amnis Finance / $2M / USA / Liquid staking protocol on Aptos blockchain / OKX Ventures, Aptos Labs, Arkgrow Pte Ltd, Ambush Capital, Gate Ventures, Turneo / €2M / UK (London) / Travel tech startup / Bessemer Venture Partners, Underline Ventures Permissionless Labs / $10M / USA (San Francisco Bay Area) / Content delivery network (CDN) on Solana / Multicoin Capital, Robot Ventures, Sorted Wallet / $1.5M / Hong Kong / Cryptocurrency access platform / Tether Operations Limited

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Come join the Future of Frontier Technologies AI & blockchain event panel in Santa Monica! ✨ We are hosting an event on Friday, May 3rd during @Farcaster's FarCon weekend. Which will bring many blockchain experts & builders to LA! Emerging LA is collaborating with Lightspeed's Faction VC as a co-host, with Partner Timothy K. moderating a panel. The panel will discuss the questions that you are probably wondering about these technologies: • How can AI and blockchain work together? • How will these frontier technologies impact industries today? • What are the real-world use cases that these technologies solve? • What are the current dynamics between innovation and regulation? ​One on hand, AI offers the promise of abundance, democratizing content creation but will open the door to (deep)fakes and mistrust. On the other hand, ​Blockchain offers digital scarcity, authentication, and trust in a world inundated with digital replicas. --- The audience will be filled with founders, technical builders, investors, and industry executives in sectors that are most relevant to these trends: Gaming, media, content, finance, social. The early bird ticket sold out quickly last week and the general admission tickets expire on Wednesday, so don't miss out and grab yours soon! Partners for this event include Sunset Ventures and AI LA as well as others in town: • LA schools & clubs: Wharton Club of Southern California, Wharton Digital Assets Club, Harvard Kennedy School, Harvard Blockchain , and Blockchain at USC • CPG startups & Brands: Studio TBD, doorsa, Red Bull --- PROMO CODE DISCOUNTS! If you are a student or alum from Penn/Wharton, Harvard, USC, reach out and ask for code!! 😉 See you on Friday! (Link to event in comments) #ai #blockchain #farcon #web3 #LA

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💡 Ready to explore the world of early-stage venture capital? In today’s episode of Collisions YYC, J. Mark (马克) Mitchell, General Partner at Weave VC, joins me to share how his team identifies and invests in the most promising tech startups in Western Canada. From the importance of founder relationships to the role of patience in venture capital, Mark offers invaluable insights on how to navigate the complexities of early-stage investing. 🎧 Don’t miss this episode filled with actionable insights for investors and entrepreneurs alike. Get the link to listen in the comments. #CollisionsYYC

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Some more thoughts on why we think SecondShop.com is one of the more ambitious investments we've made.

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This article misses on a couple of key fronts 1. there has been material liquidity in the Canadian VC market - it’s just that since 2019 more than 70% of it - some $18+B - has been in life sciences 2. Canadian liquidity in Life’s sciences has even been proportionately better that in the US 3. The Florida professor used CVCA data - unfortunately the CVCA grossly under reports liquidity in general and life sciences VC liquidity in particular in part because their data misses post IPO acquisitions and in many cases VCs hold to that event 4. Finally, there is no major global economy where governments aren’t deeply engaged in building there innovation economy. In fact, I would argue that compared to China, singapore, the EU, Isreal, and even the US, government engagement in Canada is tiny and should be meaningfully more given the lack of endowment capital and the lack of engagement of by the majority of domestic pension plans. In the US these are the primary allocators to VC. If we want to grow our economy, increase productivity, and give this generation of Canadians the same opportunities enjoyed by prior generations then more capital and engagement is the answer - not less.

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I’ve noticed many founders don’t realize how much non-dilutive capital is flying under the radar in Canada. So I’ve shared a list of alternatives you should know about before choosing to raise capital: 1. Business Scale-up and Productivity (BSP): BSP provides funding to help you scale your operations and increase your market reach. It’s a great way to drive growth without sacrificing equity. 2. Industrial Research Assistance Program (IRAP): IRAP offers financial support for research and development. It’s perfect for taking your technical ideas to the next level. 3. Scientific Research and Experimental Development (SR&ED): SR&ED provides tax incentives for technical development. It’s one of the most generous programs in Canada, helping you reclaim a portion of your R&D costs. 4. FedDev Ontario: If you’re based in Southern Ontario, FedDev offers funding to help businesses scale, innovate, and compete globally. It’s a solid option for companies looking to make a big impact. 5. Canada Small Business Financing Program (CSBFP): This program helps small businesses access loans for purchasing or improving assets like equipment or property. It’s designed to help companies grow and invest in their infrastructure. 6. CanExport SMEs Program: If you’re looking to expand into international markets, CanExport provides funding to cover costs related to market research, business travel, and participation in international trade events. 7. Canada Media Fund (CMF): For those in the digital media industry, CMF offers funding for the development, production, and marketing of innovative media projects. 8. Ontario Centres of Excellence (OCE) Programs: OCE offers various funding programs aimed at driving innovation and commercialization in Ontario. Their programs often focus on collaboration between businesses and academic institutions. 9. Mitacs Accelerate: This program provides funding to support research internships, allowing companies to collaborate with universities to solve specific challenges while benefiting from academic expertise. 10. Strategic Innovation Fund (SIF): Targeted at larger-scale projects, SIF offers funding to support R&D, commercialization, and the growth of innovative businesses in Canada. 11. Women Entrepreneurship Strategy (WES) Ecosystem Fund: This fund supports organizations that help women entrepreneurs grow their businesses. It’s part of a broader effort to increase women’s participation in the economy. 12. Innovative Solutions Canada (ISC): This program helps Canadian startups by funding R&D projects that address government challenges. It’s a great way to secure funding while working on real-world problems. 13. Alberta Innovates: For businesses in Alberta, Alberta Innovates offers several funding programs to support R&D, commercialization, and business growth. They focus on fostering innovation in sectors like energy, health, and technology. Have I missed any?

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Check out this epic interview.

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As a founder, have you ever been curious about this whole angel investing thing? This week's findfunding.vc spotlight is on an investor who's an expert in it you simply have to know: Matt Wilson, MBA from Allied Venture Partners. He: 🇨🇦 Is Calgary based 😇 Manages one of Canada's largest angle investor syndicates (now at 1,800+ members!) 🏒 Worked as a professional ice hockey referee, which he says shares remarkable similarities with investing Amongst founders, Matt Wilson, is known for bringing empathy and perspective as a former founder himself. Aside from financial support, his goal is to be the 'right' investor - one that aligns with a founder's vision, shares his network, and provides strategic insights when asked. ✉️ Make sure to pitch him, invest, scout, advise and more at https://linktr.ee/alliedvc For more, check out our funder spotlight card below along with Allied Venture Partners' profile on findfunding.vc (link in comments).

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For the past two weeks, I've been on the road, traveling across Canada and the US, giving talks on the intersection of AI and biotech. On a philosophical level, I feel fortunate to work in a field that is transforming biology from a specialized craft into a standardized engineering discipline. This shift is incredibly exciting. Just as mathematics revolutionized physics by uncovering nature's rules, AI and machine learning are now deconstructing biology into an engineering science. On a professional level, computational techniques are becoming central to biotech and healthcare startups, enabling close collaboration with domain experts. This transformation compels us to rethink resources, cloud infrastructure, access models, business models, and care paradigms. It's an exhilarating time for innovation and change. On a personal level, I’ve been overwhelmed by the large, diverse crowds of professionals attending my talks. They range from recent graduates from top-tier universities to mid-career and senior professionals from various technical and social backgrounds, all seriously considering careers in this space. Yes, there is hype. It takes effort to discern which companies are genuinely substantive. However, we have made significant progress, often led by quieter yet impactful startups. Yes, data silos are a problem. However, we are seeing leaders from government, academia, industry, and the private sector work together to unlock that access in an ethical and safe way to support advances. Stay tuned for some exciting news I'll be sharing soon :) #synbio #bioengineering #compbio #startups #biotech #venturecapital #artificalintelligence #AI #ArtificialIntelligence #Innovation #AICommunity #StartupEcosystem

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Despite the headwinds many software companies (even public ones) are facing today, there are still those that are delivering great results. Check out how the top decile companies in our Beyond Benchmarks survey are performing. And don't forget to review the full report for many more insights on the state of private software businesses.

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Below is a good summary and context for the Q3 quarterly report released by the CVCA. On the surface, it seems like it was a good quarter for venture investment in Canadá. But a quick look under the surface paints a potentially very different picture: - the 130 deals closed in Q3 matches the lows during COVID in 2020 - the $2,651MM in deal value appears fairly robust other than the heady days of 2021. But it includes both the Clio deal of $1,240MM and the Cohere deal of $616MM leaving the remaining 128 deals totalling $795MM, matching the levels last seen during COVID in 2020 - the vast majority of the source of the capital invested in Q3 are from US or other foreign sources of capital - early stage investments continue their trend of performing poorly this year What does this all mean? Not really sure yet. It certainly was not a good quarter of activity but it’s too early to call this a trend. But is it a leading indicator that deal activity will continue to be constrained? Is there evidence of a lack of Canadian source capital required to invest in startups, and in particular, early stage opportunities. When the Federal government decided to increase capital gains taxes, many people in the innovation community sounded the alarm bells. The fear was that such an increase will further take the air out of the sails of funding startups in Canadá. While it is still too early to conclude the impact of such a move, it is clear the timing of this decision is very unfortunate because there is a clear trend that the activity in venture from Canadian sources of capital is slowing down materially.

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Over the past three years, we've seen founders graduate from the Catalyst program and apply the learnings to their own companies. One example is Jared Zhao, Founder & CEO of Athenic AI, who joined the program in 2023. 🌟 What can you expect to get from Catalyst? ✨ 1-on-1 Coaching & Mentoring: Get direct guidance from Stage 2 Limited Partners, leaders from top companies like Datadog, Atlassian, HubSpot, Databricks, and more. 📈 Science of Scaling: Learn how to implement Stage 2 Capital’s Science of Scaling program (but in the context of your company.) 💰 $200K Investment: Secure funding to fuel your growth  🤝 Connections: Build meaningful relationships with other founders who are going through similar challenges. Ready to apply? Join the program: https://lnkd.in/ggzmVRA2 #Catalyst #GTM #EarlyStageStartup #Founders

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Check out my latest article to discover how first impressions can matter more than you might expect.

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“Sell to the rich” is terrible advice. When I look at our current and historical portfolio, companies with lower prices as their fundamental value prop have an inordinate propensity to be worth $1B+ in enterprise value. The key? Their basis for having a lower price must be structurally defensible and sustainable. It can’t be that they’re doing exactly the same thing as their competitors, just charging a lower price. That’s the definition of unsustainable. There is usually some disruption in the supply chain or some technology innovation, which they can take advantage of above and beyond their competitors which is why they’re able to offer sustainably lower prices to their customers and quickly take market share of a large existing market. -Xoom, A PayPal Service offers online global money remittance at a lower price than folks like Western Union because they have an Internet front-end. -Prosper Marketplace offers loans to consumers at a lower interest rate because they use the Internet to cut out the banks who take a margin in the normal lending process. -GlobalTranz offers businesses access to trucking capacity at a much lower price due to the efficiency of their agent network, technology and buying capacity. -Cortera is offering business credit data at a much lower cost than Dun & Bradstreet because of its proprietary data acquisition platform. - And Chewy offers pet owners high quality pet food at a lower price than bricks and mortar competitors because they have no bricks and mortar. These companies took significant steps in transforming their respective industries on the core value proposition of lower price. While it’s easy to fall in love with companies that have other value propositions such as convenience, selection, revenue enhancement, service, etc., lower price is a tried and true value prop that while admittedly boring, can be extremely effective if it’s sustainable.

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Planning this to be an interactive discussion about structuring deals toward an exit. Join me at Elevate! #VentureCapital #earlystage #AngelInvestor #Investing #KeiretsuCanada #Startup #Canada #OntarioAngels #NACOCanada #scaleup #familyoffice #entrepreneur #StartupVisa #TrendwellVentures

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"Platform" in VCs often feels undefined, and different at every firm. But one thing is clear: firms with dedicated platform teams are seeing higher investment returns. What is 'Platform' in VC? Think of it as a support engine for portfolio companies. Platform teams accelerate growth by providing: 1) Strategy & Growth 2) Talent Partner 3) Marketing & Brand Partner 4) Business Development & Partnerships Lead 5) Community Manager 6) Operations & Scaling Partner 7) Fundraising & Capital Advisor Platform in Venture Studios vs. VC Funds: The big difference? Timeframe. Venture Studio Platform: Involved from concept to exit, guiding startups from the very first spark of an idea. VC Platform: Steps in after the startup is funded, focusing on scaling and growth but not the initial concept phase. Both play critical roles—but understanding these distinctions helps founders and investors make the most of their platform relationships.

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