Venture capital inflow
Cash-starved startups set their eyes on fresh capital pouring into Vancouver. In 2016, Vanedge launched a new fund and was the first beneficiary of the province’s BC Tech Fund with a $15 million investment. BDC Capital launched a $150 million IT fund. Meanwhile, the aforementioned BC Tech Fund earmarked $25 million for Series A investments. The local biotech industry also benefited from the October launch of Quark Venture Inc., a US$500 million venture capital fund backed by Chinese investment bank GF Securities Ltd.
Talent crunch calmed
Two years after restrictions were imposed on the temporary foreign workers program, tech companies looking to fill out their ranks finally got some relief from Ottawa. In November, Finance Minister Bill Morneau announced changes to the country’s immigration policies that would make it easier to bring in skilled workers. Tech companies in Vancouver, meanwhile, reported an uptick in resumés from south of the border one week later when Donald Trump was elected to be the next U.S. president.
Microsoft royalty arrives
Microsoft (Nasdaq:MSFT) co-founder Bill Gates and CEO Satya Nadella took a day trip from Redmond, Washington, to visit Vancouver for September’s Cascadia tech summit. During a fireside chat, Gates praised Canada’s immigration policies while Nadella championed the HoloLens innovations coming from Port Coquitlam’s Finger Food Studios.
Microsoft office opens
Microsoft officially opened its new 750-person office at Pacific Centre in June. During the ribbon-cutting ceremony, company president Brad Smith said he would be “thrilled” if Microsoft Canada’s headquarters were in Vancouver instead of Mississauga. But he affirmed the company has no plans to move.
Payout pact potential
Biotech firm Zymeworks signed a partnership agreement with Glaxo
SmithKline in April with a potential payout of US$908 million. The latest deal, which gives the British firm access to Zymeworks’ cancer treatment, is the latest in a string of agreements with the potential to yield US$4.4 billion, according to CEO Ali Tehrani.
Up with artificial intelligence
Vancouver’s Genus Capital Management AI-powered platform, which manages $1.2 billion in private wealth, debuted to the public in the summer. It joined robo-adviser Responsive Capital Management and D-Wave as B.C. companies providing financial management tools that bypass the need for human involvement. Meanwhile, Mobify acquired AI marketing technology from Pathful, and AI made its way to the Vancouver dating app known as Bernie.
Critical vision
The co-founder of one of Vancouver’s few anchor tech companies, Vision Critical, departed the market research software firm in November. Andrew Reid joined the app-making spinoff VC Labs but remained a major Vision Critical shareholder.
Industry startup kick-start
The heavy equipment and advertising industries all took notice of startup culture in 2016. Finning (TSX:FTT), DDB and Cossette all launched digital spinoffs or accelerator programs in Vancouver aimed at injecting entrepreneurism into their corporate culture. Local incubator Launch Academy even began offering workshops to corporate clients looking to bring that startup mentality into their offices.
