Canada Flowthrough Shares Launches an Innovative Pilot Program
Canada Flowthrough Shares is excited to announce a transformative pivot that aligns with recent investments in innovation infrastructure. Their new initiative, termed the "pipes-to-taps" pivot, is designed to launch provincial, time-limited FTS-for-Tech pilots. This approach aims to develop a coordinated strategy with uniform standards and robust key performance indicators (KPIs) to ensure a successful rollout.
Honoring a Legacy
This initiative is dedicated to the memory of John Reid, the former President & CEO of the Canadian Advanced Technology Alliance (CATA). Reid’s commitment to advocating for progressive policies in technology made a lasting impact on Canadian innovation. On launching the new pilot program, David Perry, a co-founder of Canada Flowthrough Shares, expressed both gratitude and determination, emphasizing the need to innovate and create jobs.
The Vision Behind the Initiative
David E. Perry, Managing Partner at Perry-Martel International, emphasized that although this budget did not include FTS-for-Tech, the essential infrastructure is ready—highlighting advancements in AI, quantum capacity, and improved SR&ED. The next step involves turning these capabilities into tangible investments for private sector development. He noted that the initiative will engage provinces that already have established investor-side credits, laying the groundwork for a pilot program that attracts investment while retaining intellectual property within Canada.
Collaboration and Efforts
Perry recognized the valuable contributions from industry leaders Paul Brent and Paul LaBarge. Their dedication during the pre-budget phase has been instrumental in paving the way for this pilot program. LaBarge pointed out that Canada already has effective frameworks for fostering investment, and the new initiative aims to build upon this foundation to engage innovators and angels at critical early stages.
Implementation Strategy
The proposed plan embraces a structured approach that includes:
- Provincial Pilots: The initiative invites participating provinces to harmonize existing investor-credit frameworks. This collaboration will culminate in a Tech-FTS Pilot Network with unified rules governing eligible expenditures, including Canadian R&D payroll and IP costs.
- Federal Sandbox: There’s a proposal for a capped, two-year pilot to align with national innovation investments, leveraging the established guardrails from provincial efforts.
- Hard KPIs: The initiative sets concrete goals, such as unlocking private funds per dollar of expenditures, generating new Canadian jobs, and facilitating faster time-to-market for new innovations.
- Open Dashboard: A commitment to transparency through quarterly publication of pilot results to guide scaling decisions.
The Path Forward
Despite the challenges facing Canada’s tech sector, leaders in the space know it’s vital to seize the moment and advance collectively. The infrastructure is well-funded, and now is the time for founders, angel investors, and industry professionals to organize and leverage this opportunity to foster the creation of new companies and job growth. To facilitate this, Canada Flowthrough Shares plans to form a Canada Tech Capital Coalition, bringing together various stakeholders—including provinces, angel groups, and accelerators—to streamline the Tech-FTS pilot across different regions.
Conclusion: A Call to Action
David E. Perry stresses that the time for action is now; the resources are available to make a significant impact in Canada’s tech industry. LaBarge echoed the sentiment, stating that effective rules must be established to provide the confidence needed by investors while keeping investment focused on innovation rather than financial intermediaries.
As a unified tech community, the industry is encouraged to honor John Reid’s legacy and actively participate in this pivotal movement that aims to transform Canada's innovation landscape.
Frequently Asked Questions
What is the Tech-FTS Pilot Program?
The Tech-FTS Pilot Program is an initiative designed to encourage investment in technology through streamlined FTS (Flowthrough Shares) frameworks across provinces in Canada.
How does this program honor John Reid?
This initiative is dedicated to the memory of John Reid, who championed technology advocacy and developed policies that created jobs and supported innovation.
What are the key performance indicators for this initiative?
The KPIs include metrics like private capital unlocked per dollar invested, job creation, and the retention of intellectual property in Canada.
Who is involved in this initiative?
Involvement includes provincial governments, angel investors, accelerators, and various institutions aimed at fostering a collaborative tech ecosystem.
What is the expected impact of the program?
The anticipated impact is significant job creation and the successful launch of new innovative technologies, leading to enduring intellectual property and economic growth in Canada.
