Québec’s forthcoming innovation hub has received a boost from four private sector companies to sustain its operations in the province until at least 2029.
Bell, Google Canada, Desjardins, and the Fonds de solidarité de Québec (FTQ) pledged a total of $5.25 million CAD to support Ax-C, an upcoming space in downtown Montréal that aims to foster entrepreneurship and innovation.
Geneviève Leclerc, director of Ax-C, announced the new funding this morning at OASIS immersion in Montréal, with representatives from each of the private funders in attendance.
“It’s much more than money that they give to this project,” Leclerc said in an interview with BetaKit. “They will all have some spaces within Ax-C to offer access to some services, some resources in order to help our startups achieve their goals.”
The funding comes in addition to the $48 million in public funding pledged in March 2023.
Bell said it will provide tools and resources to Ax-C entrepreneurs, such as 5G networks and Internet of Things and artificial intelligence solutions.
“It is actually a fairly high-profile recruitment of the startup community, which is something that hasn’t happened for a few decades … So obviously, it’s very exciting,” said Marc Boyer, director of Google Cloud in Canada, in an interview with BetaKit.
First announced in March 2023, Ax-C is a forthcoming innovation space set to be located on the former trading floor of the Montréal Stock Exchange at Place Victoria Tower, in the centre of Montréal’s business district. It will be run by the École superieure de technologie (ÉTS).
The funding comes in addition to the $48 million in public funding pledged by the governments of Canada, Québec and the City of Montréal in March 2023. The provincial government contributed the lion’s share, at $38.5 million CAD, through its 2022-2027 innovation strategy to support research and investment.
Ax-C’s new partnership with the private sector will help reunite top talent from across the province with key industry players, Leclerc said. “Events are going to be like the beating heart of the space,” she added. “It’s not only a co-working space, it’s so much more than that.”
In return for their support, these private-sector partners will get privileged access to emerging innovations and dedicated office spaces inside the innovation hub, according to the press release.
“We have a certain amount, a limited amount, of discretionary funds across the country that we can use to fund projects like this,” Boyer said. “And this one has always been pretty high up, actually, in the priority list.”
Ax-C’s location in Place Victoria Tower is just streets away from Google’s Montréal offices, making it a prime location for collaboration, Boyer shared. “As far as I’m concerned, this is a requirement that enhances […]productivity.”
Marc Villeneuve, vice president of business development and outreach at Desjardins Group, wrote in an email to BetaKit that innovation at Ax-C will help support their members and customers, in addition to the ecosystem at large.
“We’re convinced that the best way to support the next generation of entrepreneurs is to put them in touch with valuable resources and experienced experts, ” Villeneuve wrote.
Québec Tech, formerly known as Startup Montréal, is a partner and future tenant in the Ax-C hub. The activity at Ax-C will help support Québec Tech’s new mandate to grow and export high-potential scale-ups, according to Leclerc.
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“For startups here in Québec, you know, there’s a lot of challenges, such as the access to financing, but as well, to have the involvement of the private sector,” Leclerc explained, adding that Ax-C’s partnership with private-sector players helps build that bridge.
“In the world’s most successful innovation ecosystems, private sector involvement has been proven to be a key element of success,” said Richard Chénier, general manager of Québec Tech.
“The participation of the four ‘building partners’ … is crucial to Quebec’s startup ecosystem’s growth. It highlights the private sector’s recognition of the importance of fostering collaboration between corporations, tech entrepreneurs, and key ecosystem players, all of whom are instrumental in shaping Quebec’s innovation landscape, both locally and globally,” Chénier explained.
The Ax-C team confirmed a list of tenants in the new space, including incubators and accelerators such as Centech’s LE CAMP, V1 Studio, and Axelys. Government bodies, such as Investissement Québec and Le Conseil de l’innovation du Québec, will also have dedicated spaces.
Ax-C’s anticipated opening comes as Notman House, another Montreal ecosystem hub, shuttered this summer after its owners defaulted on mortgage debt. The Trottier Family Foundation bought the historic building that housed Notman House and plans to turn it into a philanthropic centre.
Startups can apply to become tenants at the Ax-C space until October 31.
“Right now in Québec, I think that our ecosystem just reached a certain point of maturity,” Leclerc said. “I would say that we just need to work closely all together.”
BetaKit reached out to Bell and FTQ for comment but did not hear back by publication time.
Feature image courtesy École de technologie supérieure.