Welcome to BetaKit’s startup stories of the week! Here, you will find the week’s most important news, features, and editorials published on BetaKit. If you prefer this update hit your inbox every week, make sure to subscribe to the BetaKit Newsletter using the form at the bottom of this page.
Top Stories of the Week
After hiring freeze, Wealthsimple makes staff cuts
Wealthsimple has laid off approximately 13 percent of its staff today, BetaKit has learned. With the move, Wealthsimple joins fellow Canadian tech firms WonderFi and BBTV in cutting staff to reduce costs amid tough market conditions.
Inovia raises $420 million CAD for fifth early-stage venture fund
Fund V brings Inovia’s total capital under management to $2.2 billion USD. This is the first early-stage fund Inovia has closed since the $265 million CAD ($200 million USD) raised for Fund IV in 2019. At that time, the venture firm also raised $430 million CAD ($400 million USD) for a growth-stage fund.
Federal government introduces new legislation aimed at governing privacy, AI
The ministers said Bill C-27 will significantly strengthen Canada’s private sector privacy law, create new rules for the responsible development and use of artificial intelligence (AI), and continue to put in place Canada’s Digital Charter.
Québec’s new French language bill prompts letter of concern from tech business leaders
The new bill is subtitled “an act respecting French, the official and common language of Québec.” Passing Royal assent on June 1, the bill introduces a number of requirements around the use of French – including on websites, in marketing materials, and in contracts.
With Canadian tech IPOs on pause, private markets face a higher bar
Most companies eyeing the public market have put their IPO plans on hold. Valuations are taking a hit, and later-stage companies with near-term IPO plans are seeing the biggest impact.
Startup Luxembourg wants Canadian founders to know its country is a gateway to the European market
Leaders of Startup Luxembourg, the brand for the country’s tech ecosystem, are on a trade mission to Canada, including a stop at Collision 2022, to entice Canadian founders to launch in Europe through Luxembourg.
Latest Funding, Acquisitions, and Layoffs
CAL – Bitvo to be acquired by FTX (read more)
KIT – EvolutionQ – $7M (read more)
TOR – CapIntel – $14.2M (read more)
TOR – Plobal Apps – $8.5M (read more)
TOR – Ireland’s Swoop closes $8.4M to target US expansion with Toronto office (read more)
TOR – Altrio – $8M (read more)
TOR – Pok Pok – $3.9M (read more)
TOR – Babbly – $3.2M (read more)
TOR – GoBolt acquires BoxKnight (read more)
OTT – Indigenous Growth Fund secures $3M from Block (read more)
COLLISION’S PADDY COSGRAVE TALKS SHOPIFY, TECH DOWNTURNS, AND MEANINGFUL CONNECTIONS
“There’s so much fire and uncertainty afflicting some of the big names in Canadian tech that I just don’t think that people even know how to process how they might participate in Collision without just getting smacked around on stage.”
WHAT’S BEHIND THE EXPLOSION IN ACQUISITION ENTREPRENEURSHIP?
“It’s like you’re getting married and writing your prenup and your divorce agreement on the day you get married.”
Elizabeth MacRae (Village Wellth) explains how YouTubers, Boomers, and banks with favourable terms are fuelling an explosion in acquisition entrepreneurship.
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