The future of Canadian tech companies looks promising

Growing in the face of adversity

It’s the nature of entrepreneurship to find solutions to problems,
and the recent challenges facing Canada’s technology sector are
driving innovation forward. The current context is forcing SMEs to
tighten their activities and review their business models to make them
more resilient. Just think of the economic crisis of 2008; the
Canadian banking system has emerged from this ordeal even stronger and
become one of the most stable in the world.

“Companies that aim for sustainable growth rather
than growth at all costs are the ones that will come out
ahead.“
– Tuyen Vo, Head of the Technology and
Innovation Group, National Bank

Ultimately, a tech company that knows how to adapt is even more
attractive as an investment target.

Pillars of resilience

After 165 years of supporting entrepreneurship, National Bank is
pleased to see two fundamental pillars in Canada on which economic
cycles have little influence:

Skilled workforce

Of all the resources in the territory, skilled labour may well prove
to be the most valuable. In recent years, Canada has seen a
formidable network of higher education institutions with a strong
graduation rate in mathematics and computer science. The country
attracts talent, partners and investments from around the world. 

Diverse ecosystem

The local tech ecosystem is enviable and includes successful SMEs in
artificial intelligence, cybersecurity, supply chain management,
finance and information technology – to name a few.

This optimism explains why the financial institution recently
acquired the commercial loan portfolio of the Canadian arm of 
Silicon Valley Bank (SVB) during the latter’s difficulties. It
consisted of approximately CAD 1 billion in loan commitments including
roughly CAD 325 million in drawn loans. This has provided a unique
opportunity to strengthen its position in the technology, life
sciences and global fund banking sectors.

“The acquisition of the Canadian portfolio of
Silicon Valley Bank (SVB) demonstrates our continued support for the
Canadian technology ecosystem. We are doubling down on a sector in
which we truly believe.”
– Tuyen Vo, Head of the
Technology and Innovation Group, National Bank

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Read the full article on Canada’s tech sector

The rise of clean technology

Some parts of the technology sector are particularly well positioned.
For example, the fight against climate change mobilizes societal
values, entrepreneurship and innovation – an ideal context to
stimulate the development of clean technologies. The needs are
glaring, government policies are favourable to adopt new solutions,
and even the next generation within the industry seems assured. In
Montreal alone, more than 70,000 students are enrolled in university
programs related to clean technologies.

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Learn more about clean technology in business

Supporting SMEs at every stage,
from ideation to commercialization

It takes capital, expertise and knocking on the right doors for
great ideas to come to fruition – and for society to benefit.
This is where financial partners, such as National Bank’s
pan-Canadian Technology and Innovation group, come in. It offers
specialized venture, M&A and growth financing, as well as
specific treasury and foreign exchange expertise. In addition to
financing, calling on such partners allows access to management
services, banking services and personalized advice for a wide range
of situations.

Through their advice and financial services, specialists in National
Bank’s Technology and Innovation Group support companies in the
Canadian tech sector, particularly those that are innovative when it
comes to environmental concerns. These companies include Mangrove
Lithium and Oxygen8 located in British Columbia, as well as
dcbel and FLO in Quebec.

“We put our values to work for our talent, and vice
versa. The will is there: the challenge lies in access to capital to
develop and commercialize ideas.”
– Tuyen Vo, Head of the
Technology and Innovation Group, National Bank

The financial institution regularly works on the development of
strategic partnerships. For example, it facilitated a unique
collaboration to install FLO electric vehicle charging stations at
Imperial-owned gas stations, contributing to Canada’s net-zero goals.

Despite the challenges, it is still possible to double or triple in
size in one year when you benefit from the personalized and agile
approach of our financial partners.

“The past few months have not been easy, but all of
these changes will put technology leaders in a better position to
take advantage of what’s to come. And they will be able to count on
the support of an entire ecosystem.”
– Tuyen Vo, Head of
the Technology and Innovation Group, National Bank