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Canadian Tech in 100 Words

Canada’s BDC Unveils AI Initiative for Entrepreneurs

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BDC has launched its Data to AI Program, designed to help Canada’s small and medium-sized businesses (SMEs) integrate artificial intelligence (AI) into their operations. The program provides guidance, tools, and financing to enhance productivity, streamline processes, and boost cybersecurity.

A recent BDC study revealed only 39% of SMEs recognize their AI usage, though 66% unknowingly rely on AI-integrated tools. Success stories like Vortex Aquatic Structures show how AI-readiness roadmaps can drive growth and efficiency. “Every small business deserves the opportunity to benefit from AI,” said BDC COO Véronique Dorval. The program aims to empower SMEs in the evolving digital landscape.

Want to know more? Check out the source code on Newswire.ca.

Vault Launches Interac e-Transfer for Canadian Businesses

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Toronto-based fintech Vault has added Interac e-Transfer payments to its platform, responding to demand from Canadian small businesses. The feature complements Vault’s existing offerings, which include multi-currency accounts, global transfers, and automated accounting. Co-founder Ahmed Shafik highlighted the importance of listening to customers, stating that many small business owners prefer Interac for its convenience.

Founded in 2021, Vault aims to modernize financial services for Canadian SMEs, inspired by the outdated banking experiences of its founders’ families. Vault also integrates with QBO and Xero, with plans for more integrations. This move strengthens Vault’s position as a comprehensive digital financial platform.

Want to know more? Check out the source code on Fintech.ca.

Canadian Startup Tests Delivery Robots in Suburban Streets

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Real Life Robotics is set to deploy six delivery robots in Markham, Ontario, this January, targeting street-front shops and restaurants. After a successful summer pilot delivering animal meals at the Toronto Zoo, the company aims to offer businesses a low-cost alternative to platforms like Uber Eats.

Founder Sharif Virani, formerly with Tiny Mile, is addressing past concerns about robot safety by equipping bots with sensors to collect city-friendly data and building trust through gradual, safe trials. Real Life Robotics hopes to appease municipalities wary of sidewalk hazards, contrasting with Tiny Mile’s contentious experiments during the pandemic.

Want to know more? Check out the source code on The Logic.

Shopify Hits $11.5B Black Friday-Cyber Monday Sales Record

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Shopify shattered its Black Friday-Cyber Monday (BFCM) sales record, reporting $11.5 billion USD in merchant sales—a 24% increase from last year’s $9.3 billion. Over 76 million consumers shopped globally, with Shopify’s Shop Pay usage up 58% year-over-year. Canadian merchants averaged $199.60 CAD per cart, surpassing global averages, while point-of-sale sales in Canada grew 32%.

The record-setting weekend occurred despite Shopify’s warning that the Canada Post strike could “devastate” small businesses. Shopify called for federal intervention last week, but the strike continues, costing SMBs $765 million, according to CFIB. Shopify’s performance reaffirms its resilience amid economic challenges.

Want to know more? Check out the source code on BetaKit.

Shopify, Clio Represent Canada on Future 50 List

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Fortune and Boston Consulting Group’s 2024 “Future 50” list features two Canadian companies: Shopify and first-time entrant Clio. Shopify ranked 25th, slipping from 16th in 2023, but continues to demonstrate strong growth, reporting $5 billion in Black Friday sales—a 20% year-over-year increase.

The Ottawa-based fintech recently surpassed a $200B market cap, securing its position as Canada’s second-largest public company. CFO Jeff Hoffmeister highlighted Shopify’s 26% revenue growth and strong cash flow margins, with the firm forecasting over 30% revenue growth for Q4. The list, dominated by tech giants like OpenAI and Snowflake, underscores Shopify’s global impact.

Want to know more? Check out the source code on Fintech.ca.

AI Chipmaker Tenstorrent Secures Massive Series D Round

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Tenstorrent, a leading AI chip startup, has raised $693M USD in a Series D funding round, valuing the company at $2.7B. Samsung Securities and AFW Partners led the round, with new investors including HOOPP, Export Development Canada, Toronto’s Georgian, and Bezos Expeditions. Tenstorrent develops machine-learning chips, sells servers to data centers, and licenses IP for custom hardware.

Founded in Toronto, Tenstorrent relocated to the U.S. in 2023 under CEO Jim Keller. This marks HOOPP’s first investment in a Canadian AI startup and EDC’s continued backing of the sector, which includes model maker Cohere.

Want to know more? Check out the source code on The Logic.

Apple, Meta, Samsung Absent from Canada Payment Registry

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Apple, Samsung, and Meta are notably absent from the Bank of Canada’s list of payment providers registered under its new oversight regime. The regulation, aimed at reducing risks like hacks and company failures, required non-bank payment services to register by mid-November. While Amazon, Google, and Shopify complied, the central bank is pursuing firms that may have missed the deadline.

Bank of Canada’s Paul Badertscher said companies assessing their registration requirements aren’t included on the list. Apple, Samsung, and Meta, all of which provide payment services in Canada, declined to comment on their absence from the registry.

Want to know more? Check out the source code on The Logic.

Wealthsimple, Clio, Hopper Ride Secondary Market Wave

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Amid a sluggish IPO market, Canadian tech firms like Wealthsimple, Clio, and Safe Software are leveraging the booming secondary market, which reached $68 billion globally in H1 2024. Hopper, the Montréal-based travel platform, is seen as a potential candidate for another secondary deal, following similar moves in 2016 and 2020.

Brightspark partner and board member Sophie Forest suggests secondaries could reward Hopper’s employees and early investors if IPOs remain out of reach. While not actively pursuing a deal, Hopper President Dakota Smith emphasizes there’s no rush to go public. The secondary trend underscores creative liquidity solutions for private tech firms.

Want to know more? Check out the source code on BetaKit.

Lightspeed Restructures, Cuts 200 Jobs to Drive Growth

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Lightspeed Commerce has announced a reorganization impacting 200 employees as part of its strategy to prioritize resources for profitable growth. CEO Dax Dasilva emphasized the company’s focus on North American retail and EMEA hospitality, aiming to streamline operations and strengthen competitive positioning.

Cost savings from the layoffs will be reinvested in strategic areas, with restructuring charges expected in Q3 fiscal 2025. The move aligns with Lightspeed’s ongoing review of strategic alternatives, though no assurances have been given on the review’s outcome. Dasilva reaffirmed the company’s commitment to delivering value while reducing business complexity.

Want to know more? Check out the source code on Newswire.ca.

Shopify Urges Ottawa to End Canada Post Strike

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Shopify has issued an open letter to Canada’s Labour Minister, urging immediate intervention in the ongoing Canada Post strike. The e-commerce giant warns the dispute jeopardizes small businesses, with 67,000 Shopify merchants reliant on Canada Post, especially in rural areas. The 12-day strike has delayed 10 million parcels, disrupting deliveries ahead of Black Friday/Cyber Monday, a critical sales period.

Shopify suggests binding arbitration or legislation to end the standoff. Meanwhile, Canada Post cites mounting financial losses, while the postal union demands better wages and working conditions. Minister MacKinnon, however, has ruled out arbitration for now, citing unresolved fundamental issues.

Want to know more? Check out the source code on BetaKit.