This deep tech PE firm was drawn to Canada by the data
Jun 29, 2024
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Jolt Capital's Jean Schmitt discusses why Canada's tech scene attracted their deep tech PE firm, emphasizing the vast opportunities for investment in the country. The podcast explores the data-driven decision to establish their North American HQ in Montreal, the trend of Canadian pension funds investing in local deep tech firms, and the role of deep tech investments in post-COVID economies. Schmitt highlights the importance of strategic investments, collaborations with local investors, and retaining Canadian talent for global scaling.
Canada offers untapped investment opportunities for tech companies, with 60% never meeting investors due to customer focus.
Deep tech investments in emerging technologies like quantum computing prove profitable despite perceived risks.
Deep dives
Deep Tech Private Equity Firm Establishes North American Headquarters in Canada
A managing partner of a deep tech private equity firm explains the data-driven decision to establish their North American headquarters in Montreal. With a focus on growth capital for tech companies, they are targeting regions like Canada where there is a strong inventory of technology companies waiting for investment. They aim to bridge the gap in accessing growth capital, emphasizing the opportunities present in Canada and how their expertise can benefit local startups.
Investment Opportunities and Pension Fund Initiatives in Venture Capital
The podcast delves into the dynamics of pension fund investments in venture capital and private equity. Highlighting the importance of productive investments, the conversation touches on international initiatives where funds are incentivized to invest in growth-stage companies. Comparisons are drawn between European programs and discussions happening in Canada, showcasing the potential for pension funds to contribute to the growth of the venture capital landscape.
Venturing into Deep Tech Investments and Debunking Common Myths
The discussion challenges misconceptions around deep tech investments, contrasting the perceived risk with actual investment returns. By analyzing data on IPO multiples for digital, software, and hardware companies, the podcast underscores the profitability of deep tech investments. The narrative shifts towards embracing emerging technologies like quantum computing and new materials, advocating for a forward-thinking approach to tech investments.
Expanding Global Reach for Canadian Tech Companies
The conversation explores strategies for Canadian tech companies to scale globally, highlighting the importance of leveraging international presence for expansion. Through a playbook approach of establishing a strong presence in Europe and Asia before entering the competitive US market, the podcast discusses the pathway for Canadian companies to succeed on a global scale. Emphasizing the need for companies to focus on scaling locally and regionally before venturing into larger markets, the discussion provides insights into building sustainable growth strategies.
“In Canada today … if you look at the inventory of 20,000 great technology companies, 60 percent of those have never met an investor. Because they’re really busy at meeting customers.”
Jolt Capital managing partner Jean Schmitt joins to discuss why he made Montréal his deep tech private equity firm's North American HQ, and the opportunities for investment he sees across Canada.
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