This is part two of New Market Entry, presented by ventureLAB. This three-part series will spotlight founders bringing their international deeptech startups to the Canadian market. Read part one here.
Transplanting a startup from Brazil to Canada isn’t just a change in latitude.
For Rubens Fernando Mendrone, founder and CEO of Linda Lifetech, it meant navigating unfamiliar terrain in a quest to revolutionize breast cancer screening.
“ventureLAB shifted us from the stage of figuring things out to being 100 percent certain that what we were doing was right.”
Linda, founded in São Paulo, Brazil, uses artificial intelligence and infrared imaging to provide a crucial early detection service for breast cancer.
This tech, which runs on an Android phone paired with an infrared sensor, is especially vital in providing a fast, safe, non-invasive screening alternative for younger women, who typically don’t qualify for regular mammograms.
Breast cancer is the second most common cancer in Canada, with one out of eight women expected to be diagnosed with breast cancer in their lifetime. Beyond the sheer size of the market, the country is also home to a large pool of digital health startups, which are supported by a strong network of local healthtech-focused investors, accelerators, and incubators.
For Mendrone, these figures signaled a compelling opportunity for Linda in Canada.
“Many people ask me: why Canada instead of the US? And my answer to them is: why not Canada?” he said. “We could see not only how powerful Canada is, but also how reliable the Canadian ecosystem is.”
But even when faced with massive market potential, navigating the complexities of Canada’s healthcare sector is no easy task, especially for an international entrant.
According to Mendrone, bringing a company like Linda to market means overcoming a series of regulatory hurdles, conducting essential clinical trials, rigorously safeguarding intellectual property (IP), and securing trust from investors and potential customers.
“Any kind of healthcare product demands credibility, and building credibility takes years,” Mendrone added.
This process proves particularly challenging in Canada, where the adoption of new health technologies is notoriously slow thanks to the cautious approach of potential buyers, coupled with long procurement cycles and a generally complex, fragmented healthcare system. For Linda, navigating these complexities required substantial resources and planning.
It’s why a crucial step in Linda’s Canadian expansion was to partner with ventureLAB through its Soft Landing program. The program, part of ventureLAB’s Canada Catalyst initiative, offers international deeptech companies with a network, advisory services, and key business resources to help them gain a foothold in the country.
For Linda, these business resources were vital in three key areas. First, the startup needed help with plotting a course through the country’s IP landscape. “IP is really important for us in building credibility with investors and the market while protecting the future vision of the company,” Mendrone said. “ventureLAB was very strategic in this area.”
To address this challenge, ventureLAB set Linda up with a dedicated IP advisor, who helped the company build its inventory of trademarks, patents, and trade secrets. The startup is now working with Ontario’s IP agency, and its technology is patent-pending.
On the regulatory side, Mendrone noted that ventureLAB not only helped the startup establish connections to boost its standing with Health Canada, but also supported the company in navigating a broader range of regulatory challenges. For one, Mendrone was able to move to Canada and get his visa entirely through the support of ventureLAB. The program also paired Linda with an accounting firm to ensure its taxes were ready for the Canadian market.
“Regulation is basically the foundation of companies like ours, not only because we’re in healthcare, but also because we’re coming from another country,” Mendrone added.
Finally, like any tech company, branding is a crucial component of Linda’s Canadian playbook. Linda is now an entirely Canadian company with a Brazilian subsidiary, and is working on a rebrand and relaunch of its website, which is being funded entirely by ventureLAB.
“Whether it was on the IP side, branding, or regulatory side, ventureLAB shifted us from the stage of figuring things out to being 100 percent certain that what we were doing was right,” Mendrone added. “That has been really, really important.”
PRESENTED BY
Breaking into North American markets calls for deep market knowledge, skilled talent and an experienced support network who can assist you in your journey to Canada.
ventureLAB’s Canada Catalyst serves as a launching pad for international companies to enter the Canadian market and beyond, catering specifically to the unique needs of companies in the hardware and enterprise technology sectors, with a strong emphasis on DeepTech.
Visit https://www.venturelab.ca/canada-catalyst to learn more.
Images provided by ventureLAB.