Deep Tech in Canada
Deep Tech companies are disruptive and innovative businesses that use technologies like robotics, big data, blockchain, AI, cloud computing and biotechnology to create new knowledge.
According to an article by BetaKit, Canada has been slow to invest in Deep Tech compared to the US and Europe. Good funding is essential for commercializing the innovative ideas coming out of universities and other research facilities.
However, more recently, Canada has begun to catch up by investing more heavily in AI innovation. For instance, Canadian startup Rubikloud is now a world leader in AI software and was acquired by Kinaxis for $81.5 million.
A new generation of investors has been born, with engineers putting money into ideas that they believe have strong potential, as opposed to the ideas being traditionally backed by people with a background in finance. Engineers may be able to better visualize ground-breaking applications of this technology due to their expertise in the area.
Deep Tech businesses can take advantage of programmes such as the SR&ED Tax Incentive, which allows innovative companies to receive a tax offset of up to 35% on money spent developing new technology, products or services. Swanson Reed’s free online eligibility test will provide an indication as to whether your company could be eligible for the SR&ED Tax Incentive.