Qasim Mohammad

Spent a wonderful week in Canada with family! Now back to business.. Here's your weekly AI update: 🔙 𝐓𝐡𝐞 𝐁𝐚𝐜𝐤𝐰𝐚𝐫𝐝 𝐏𝐚𝐬𝐬: 𝐑𝐞𝐯𝐞𝐫𝐬𝐢𝐧𝐠 𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐭𝐡𝐞 𝐀𝐈 𝐖𝐞𝐞𝐤 Week 51 | August 5 - August 11 The OpenAI Brain Drain Industry: 🚨OpenAI co-founder John Schulman leaves for Anthropic; President Greg Brockman is taking extended leave through the end of year. What's interesting is that three of their most technical co-founders (Ilya Sutskever, John Schulman, Andrej Karpathy) have all left the company now. This then begs the question - is this a result of natural silicon-valley attrition, or is there something deeper going on here? And moreover, how will this impact the technical moat that OpenAI has built over the years? (https://lnkd.in/gztRKhwV) 🚨Google announced that new Gemini AI-powered features will be incorporated in a variety of home devices, such as Google Home and Nest (https://lnkd.in/gV2QacAQ?). It also announced a significant reduction in token cost of Gemini 1.5 Flash (https://lnkd.in/gbNe6yNU?) 🚨Figure releases Figure 02, it's newest humanoid robot. Figure has been actively testing robots with BMW at a manufacturing plant. Figure last raised $675M Series B in February 2024, valuing the company at $2.6 billion. (https://lnkd.in/gZnPSke4) 🚨Mark Zuckerberg said on Meta's Q2 earning call that to train Llama 4, the company will need 10x more compute than what was needed to train Llama 3. (https://lnkd.in/g5pEPrTw?) 🚨Elon Musk filed a lawsuit against Sam Altman and Greg Brockman, renewing claims that the company is betraying its founding aims of benefiting the public good rather than pursuing profits. (https://lnkd.in/gAk5grU6) Financing and M&A: 🚨Groq raises $640m in Series D at a $2.8B valuation. The round was led by Blackrock Private Equity Partners with participation from other investors such as Neuberger Berman, Type One Ventures, Cisco, KDDI, and Samsung Catalyst Fund. (https://lnkd.in/gRtKQKvW?) 🚨Hugging Face acquires Seattle data storage startup Xethub. The HF team plans to integrate Xethub's backend storage technology, enabling developers to host more large models and datasets than currently possible. CEO Clem Delangue 🤗 confirmed this was the largest acquisition the company has made thus far. (https://lnkd.in/g8fJ-BjT) 🚨OpenAI is leading a $60m Series B funding round for Opal Camera, a maker of professional-grade webcams(https://lnkd.in/gMT9dkTG) 🚨ProRata.ai a company that has invented an attribution technology to properly compensate content owners, has raised a $25m Series A, led by Prime Movers Lab, Mayfield Fund and Revolution Ventures. (https://lnkd.in/gumjbWmj) R&D: 🚨Alibaba Group releases Qwen2-math, a SOTA model for math-specific tasks. (https://lnkd.in/g8Jh3M7T?) Other Interesting Resources: 🚨 Between May and August, more Humane AI Pins were returned than purchased (https://lnkd.in/gy56qpKm?). 😯

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This article misses on a couple of key fronts 1. there has been material liquidity in the Canadian VC market - it’s just that since 2019 more than 70% of it - some $18+B - has been in life sciences 2. Canadian liquidity in Life’s sciences has even been proportionately better that in the US 3. The Florida professor used CVCA data - unfortunately the CVCA grossly under reports liquidity in general and life sciences VC liquidity in particular in part because their data misses post IPO acquisitions and in many cases VCs hold to that event 4. Finally, there is no major global economy where governments aren’t deeply engaged in building there innovation economy. In fact, I would argue that compared to China, singapore, the EU, Isreal, and even the US, government engagement in Canada is tiny and should be meaningfully more given the lack of endowment capital and the lack of engagement of by the majority of domestic pension plans. In the US these are the primary allocators to VC. If we want to grow our economy, increase productivity, and give this generation of Canadians the same opportunities enjoyed by prior generations then more capital and engagement is the answer - not less.

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Light AI (ALGO:CBOE) has begun trading, presenting a promising future as it positions itself as a leader in AI-based healthcare technology. $30M CAD invested since 2016, the company’s proprietary algorithm boasts 97% accuracy in diagnosing viral or bacterial throat infections, addressing a global healthcare challenge: antibiotic resistance. The leadership team includes AI veteran CEO Peter Whitehead and prominent advisors like the former CIO of Johnson & Johnson, Tom Scarnecchia, and Emmanuel Blin, a healthcare distribution innovator in low-to-middle-income countries (LMICs). Light AI's disruptive technology aims to modernize diagnostics in LMICs, reducing the misuse of antibiotics. With a total of $26.5M CAD raised in private and RTO rounds and a marketing budget of over $3.5M, the company is poised to capitalize on the booming AI sector, which has seen peers like Healwell and Verses achieve significant valuation growth. Light AI's innovative approach and strategic capital deployment position it for strong market traction in the coming months. I am a shareholder.

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Despite a growing and robust Canadian tech ecosystem, the country has minted fewer than 30 unicorns in the past decade compared to the US's 700. Should Canadian VCs look to invest internationally? If so, what's the optimal approach to accessing global opportunities, navigating financial and cultural differences, and providing meaningful value? Alternatively, should they focus on strengthening the Canadian tech ecosystem? Is the lack of unicorns primarily a cultural, structural, or financial issue, or a combination? Can VCs play a role in addressing these challenges? Happy to participate in the Canadian Venture Capital & Private Equity Association (CVCA) webinar with Mana Hosseini, JD/MBA and Kim Furlong addressing these topics. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Registration link in the comments #venturecapital #startups #investing #canada

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Are you a B2B software startup founder at the very start? Then you have to meet this early-stage investor! This week's findfunding.vc spotlight is on Dominic Lau from Ripple Ventures. He: 🇨🇦 Is Vancouver and Toronto based 🎣 Loves to fish 🎶 Founded the RippleX Fellowship - a platform to help underrepresented founders access mentorship, intros, and the tools to get from idea to revenue to funding Amongst founders, Dominic and his team at Ripple Ventures, including Matt Cohen, are known for being hands-on partners who open valuable networks, navigate challenges together, and assist in closing crucial revenue and funding deals. Make sure to: ✉️ Pitch him at dom@rippleventures.com 👀 Look into the RippleX Fellowship - they take 10 companies 2x a year through the Founder Fellowship program and also back companies through the Fellow Fund For more, check out our funder spotlight card below along with Ripple Ventures' profile on findfunding.vc (link in comments).

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Just finished reading an insightful analysis by John Rikhtegar at RBCx on the Canadian venture capital landscape over the past decade, focusing on capital exited rather than capital invested. This deep dive sheds light on the challenges and successes of our venture ecosystem and provides valuable lessons for the future. Here are my top 5 takeaways: 1️⃣ Liquidity Volatility Challenges the VC Ecosystem Over 50% of Canada's exit value in the past decade occurred in just 2020 and 2021. This surge pulled fund cycles forward as GPs rushed to redeploy record waves of LP capital. Consequently, 2023 and 2024 have seen some of the lowest levels of capital allocated to Canadian venture in years. 2️⃣ The Dominance of Top 50 Exits A staggering 85% of Canada's aggregate exit value came from only 27% of all exits—the Top 50 largest. Achieving such large exit outcomes remains critical for VC investors aiming to build lasting franchises in Canadian venture. 3️⃣ Exit Success Isn't Just About Size There's a misconception that bigger exits equate to greater success. By evaluating exit capital efficiency (exit value relative to total capital raised), we can better assess the profitability to shareholders. Capital-efficient exits often yield higher returns, regardless of their size. 4️⃣ Canada's Exit Growth Outpaces the U.S. While smaller in scale, Canada's exit value and volume have grown faster than the U.S. over the past decade. Given that the U.S. VC market is 30x larger and more mature, this is a healthy sign for Canada's developing ecosystem. 5️⃣ Managing the Exit Value to Fundraised Ratio is Key To continue building a capital-efficient VC ecosystem, Canada must focus on improving its cumulative exit value to capital fundraised ratio. Shrinking the gap between Canada and the U.S. in this ratio is vital as we anticipate exit activity to rebound in the coming years. This analysis aligns closely with Ripple Ventures' strategy. At Ripple Ventures, we prioritize investing early and staying disciplined on entry valuations, all while focusing on capital efficiency. We believe that supporting capital-efficient startups not only drives better returns but also strengthens the overall ecosystem. It's encouraging to see data supporting this approach, emphasizing the importance of disciplined investing and capital efficiency in achieving successful exits. 📖 Read the full analysis below: #VentureCapital #CanadianVC #RBCx #RippleVentures #CapitalEfficiency #StartupEcosystem

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As a founder, have you ever been curious about this whole angel investing thing? This week's findfunding.vc spotlight is on an investor who's an expert in it you simply have to know: Matt Wilson, MBA from Allied Venture Partners. He: 🇨🇦 Is Calgary based 😇 Manages one of Canada's largest angle investor syndicates (now at 1,800+ members!) 🏒 Worked as a professional ice hockey referee, which he says shares remarkable similarities with investing Amongst founders, Matt Wilson, is known for bringing empathy and perspective as a former founder himself. Aside from financial support, his goal is to be the 'right' investor - one that aligns with a founder's vision, shares his network, and provides strategic insights when asked. ✉️ Make sure to pitch him, invest, scout, advise and more at https://linktr.ee/alliedvc For more, check out our funder spotlight card below along with Allied Venture Partners' profile on findfunding.vc (link in comments).

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What’s the next frontier in enterprise sales optimization? This week Mada Seghete and I dig deep on her immigrant founder journey, the hurdles to turning Branch into a unicorn and frontier AI models for enterprises sales attribution. https://lnkd.in/dnPACCJ4

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Another great #investcanada2024 conference last week. Congrats Canadian Venture Capital & Private Equity Association (CVCA) again and fantastic collaboration with Réseau Capital for curating + delivering such an important ecosystem event that brings together the who’s who in Canadian investing. It’s an interesting macro environment for both founders and emerging VC funds in 2024. The bar for fundraising is higher and the process is more difficult, but it’s an amazing time to build and fund startups. Over the years I’ve been asked what’s made me a successful investor given the number of exits & investor returns delivered. Beyond it being a full-time obsession for decades, one needs to constantly find ways to evolve to founder needs and deliver differentiated value. Earning the right to back and support the best founders is what delivers outsized investor returns. This is easy to say for many investors, but often many fall flat on the everyday execution for different controllable reasons. Reputations are built & lost fast in a more challenging market. Highline Beta's pre-seed VC & venture studio model continues to not only innovate, but also win predominantly because our core investment value is to always “earn the right on the cap table” with the founders that we support. It’s a complete team effort and after 8 years of building out Highline Beta’s foundation let’s us now grow via new vertical venture studios + funds. 🚀

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🇨🇦OH CANADA! WARREN HINTS AT A "WE THE NORTH" BIG BET 🇨🇦 BRK ANNUAL MEETING a bit of a snooze fest; a few intriguing nuggets/ dropped hints of coming bets à la their Japan sogo shosha foray. I. GENERAL INSIGHTS (CASH HOARD, SUCCESSION, MACRO): * BRK propping up T auctions (see below) in lieu of foreign direct bidders; reallocating out of equities; but a sudden retracement of rates would sting * a triumvirate will take over from WB (as I posted Friday) with final veto power from CEO Abel on future new positions * WB sounded hoarse, off his game--mistaking CEO Abel for Munger (R.I. P.) * "USA gov owns BRK in part" ascribed to the 21% tax rate along w exhortations for other corporates to pay fair share of Federal taxes * "primary investments only in USA" core names AXP, KO, GEICO; the most important business of the BRK empire? Clearly, I N S U R A N C E * railcar loadings trending down (key macro economic indicator)--BRK exposed * his cryptic comments around Canada: WB has invested in the Great White North before. What is this new play? Probably Energy BEFORE SPECULATING FURTHER, notable highlights as follows: I. APPLE: "2024 SHARE DECLINES YTD PARTIALLY DUE TO BRK SALES" * $189bn cash hoard, invested in "T bills and chill"---awaiting a big bet; a net seller of equities * trimmed AAPL stake (by 13%. 115mn+ shares) to lock in gains < CapGains changes 2025; BRK trim fueled NASDAQ: AAPL recent 2024 declines * fears that AAPL is "losing its moat" in China, Europe as competition intensifies and EU regulatory "takes a bite"; Cook's $110bn buyback a propping up tactic? II. RISK, INSURANCE AND AI: * "USGov = BRK's largest shareholder" begs a Q: would it ever be nationalized? * increased insurance unit exposure to FL last year in the face of others leaving "at the end of the day, still possible to make a decent profit" (in FL) * "in future, largest AI growth industry will be scams"---WB does not understand it, but knows it is potentially dangerous as well as beneficial * self driving cars w AI could be an unknowable threat to BRK insurance cash engine, e.g. GEICO which is in urgent AI catch-up mode (data analytics gap) III. BRK ENERGY: * "we have the money and the knowledge" to win in Energy * rebuilding utilities for AI, data centers is a massive undertaking along with wildfire and other risks to power generation * CEO Abel spent inordinate time on Energy indicating that might be the big bet ----------------------------- NET, BRK MORPHED into a quasi universal bank (asset mgt/money market, credit cards and insurance) with candy and tech sprinkled on top. Insurance alone generates $300bn in revenue: world's biggest insurance company by far. James Eagle has a fascinating visualization on BRK evolution here: https://lnkd.in/gNNRKYJM #BRK #risk #warrenbuffet #strategy #activemanagement #energy

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✨ Breaking: Pender Ventures' Technology Inflection Fund II LP Announces New Fund.- Pender Ventures' Technology Inflection Fund II LP Pender Ventures focuses on Canadian B2B and health tech startups poised for scale-up, with over $100 million in available funds. https://lnkd.in/eJSYQQ4d Please share to let other #Founders know For the ❤️ of Startups #Fusion42 #Startups#Venturecapital

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🚀 Just had an incredible experience meeting Keily Blair, CEO of OnlyFans in Toronto! Here's a mind-blowing stat: OnlyFans has paid out $15 billion to creators since 2016. Yes, billion with a B. 💸 The company takes 1/5th of the payments generated. With over 3 million content creators on the platform, it was fascinating to discuss the future direction of the business - which really has a ripple effect... OnlyFans has already shifted culture and how we think about creators. But their next big wave goes beyond content and culture—it’s about challenging traditional banking norms. With its massive financial footprint, OnlyFans is pretty well poised to reshape the financial landscape for lawful, profitable businesses often marginalized due to stigma. (👋 Shoutout to Sextech School founders, Women of SexTech, and other businesses that struggle to transact or even open business bank accounts.) Keily’s background as a partner at a law firm specializing in cyber, privacy, and security makes her the fit to take on the big banks. I love learning about how people found their ways into these sorts of spaces - for her, OF was a former client (and a fav client). I learned so much in our meeting. One last nugget that stood out: OFTV (their safe-for-work streamer) just licensed their first reality show to Netflix! At this point, the mainstream influence of OF, whether it's in entertainment or financial sector, is undeniably having a hand in what our future looks like.

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We love seeing founders be able to keep their equity and take advantage of non-dilutive funding sources⚒️. We're excited to collaborate with Stacy Chin, PhD leader of KeepYourEquity.co, who has secured over $15M in SBIR/STTR grants for startups across various sectors. She's written a guest blog post sharing her insights on navigating the competitive landscape of grant funding 💰. Some highlights: ❇️ Understanding SBIR/STTR: A lifeline for startups, offering up to $2 million in non-dilutive funding! ⏺️ Learning how to overcome hurdles and capitalize on the golden opportunity. ❇️ Gaining essential tips on outlining your go-to-market strategy, choosing the right program, and preparing thoroughly. ⏺️ Benefiting from Stacy Chin's 10+ years of grant writing experience and her extensive track record in securing funding for startups. Read More in the blog post linked in the comment below 👇🏾 #SBIR #STTR #GrantFunding #StartupSuccess #SmallBusiness #KeepYourEquityCo #ShayCPA #cpafirm #techaccountants #startupaccountants #techstartup #techcompany #nondilutivefunding

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How to invest in a Venture Fund? Calling all Limited Partners (LPs) and Family Offices! 📢 Are you looking to dive deeper into the world of venture capital? Want to understand how to invest in venture funds? This is a fantastic opportunity for you! We are excited to invite you to Venture Summit: Toronto Collision, where industry leaders and experts will share insights & strategies in venture capital investing. Event Highlights: 🔹 Engaging Panels: Gain practical knowledge on structuring investments, managing portfolios, and navigating the VC landscape. 🔹 Networking Opportunities: Connect with like-minded investors, LPs, family offices, and founders to build valuable relationships. 🔹 Meet Fund Managers Starting their next Fund: meet emerging managers and learn about their experience, thesis, strategy, expertise and passion for venture investing. 🔹 Startup Spotlight: Listen to shortlisted startup pitches & and connect with founders throughout the event. Date: Thursday, June 20th Register: https://lnkd.in/garRw37p Message me for a free investor ticket if you are interested in attending (limited quantity)! Don’t miss out on this exclusive chance to enhance your investment strategy and expand your network. #VentureSummit #TorontoCollision #VentureCapital #Investing #LPs #FamilyOffices #Networking #Innovation #InvestmentStrategy #VC #startups #fundraising #deals #founders #investors #limitedpartners #innovation #diversification

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At the moment, Napkin Inc. has three strategic M&A deals lined up, positioning us to end 2024 with $97M in revenue and $26M in EBITDA (producing $22M in free cash flow) on a consolidated basis. We are seeking $20M in debt funding (less than 1 turn of EBITDA) to complete above, with the potential to scale this to a $50M facility, alongside PE capital for continuous growth to $250M in revenue and beyond next year. Our approach is straightforward: bypass the middle market by raising non-dilutive debt at very low debt-to-income ratios (today we’ve achieved nearly debt-free). This will allow us to provide target company founders with well-deserved cash in exchange for selling their companies to Napkin for a mix of 75% common stock and 25% cash, paid within 120 days of closing. This requires substantial faith but embodies our belief in "we’re better together," setting the stage for a significantly higher exit value for founders as we scale toward our IPO target date of February 12, 2027—marking the end of our first 7-year cycle from inception to going public. As we engage with the private debt and PE markets, I’m eager to connect with anyone in my network who has insights or connections in this space. Together, we can push boundaries and build remarkable value. I’m excited to see our roadmap to IPO strengthen with each deal closed, each new region entered, and each founder who brings tremendous value and network effect to our company. Thanks to all our current shareholders, many of whom are founders and invested their life's work. I look forward to navigating the capital-raising component swiftly for us, so we can remain focused on building innovative M&A tech (right now we're doing some awesome things) and enhancing both our operations and systems to support all of our founders' success. #MergersAndAcquisitions #StrategicGrowth #BusinessDevelopment #PrivateEquity #DebtFunding #IPOJourney #CapitalRaising #NonDilutiveCapital #BusinessScale #TechInnovation #CorporateStrategy #GrowthFunding #FinancialGrowth #Entrepreneurship #BusinessSuccess #FutureOfFinance #ScalingUp #InvestmentOpportunities #RevenueGrowth #EBITDA #FreeCashFlow #CompanyGrowth #MarketExpansion #DebtFacility #ScalingStrategy #InnovationLeadership #Startups #BusinessTransformation #StrategicPartnerships #ScalingBusiness #GrowthCapital #CorporateFinance #MandASuccess #InvestmentStrategy #ValueCreation #FinancialSuccess #ScalingToIPO #TechGrowth #BusinessResilience #FundingGoals #PrivateDebt #PEMarkets #BusinessBuilding #EntrepreneurialJourney #GrowthMindset #IPO2027 #Napkin

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Cool read about portco Vivid Machines using AI to help farmers maximize yield, reduce costs, lower emissions, and make data-driven decisions that weren’t possible a generation ago!! 🍎 🍇 🍐 🥝 From real-time tracking of tree health to optimizing harvest timing, Vivid turns farming into a precise science – helping farmers make informed decisions that improve profitability and boost efficiency. It’s awesome to see Canadian agtech driving such significant economic impact. Proud to support Jenny Lemieux and Jonathan Binas in shaping a more productive and sustainable future for farming! 🌱🚀 https://lnkd.in/e4i2NgMW #AI #agriculture #startups #venturecapital

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"I am the type of person who loves getting shit done, throwing a lot of things at the wall, seeing what sticks, moving quickly." Same. Emily Durfee, same. I loved chatting with Emily partner at Healthworx Ventures about all the exciting things they are doing!! We cover a TON of ground, Diverse perspectives in venture capital and the value of hiring people with different skills and strengths. What does effective leadership mean, and how to create a culture of respect and value within a team. Emily shares her incredible experiences in East and West Africa and the lessons she learned about healthcare systems and the importance of incentives. We ofcourse talk all things Healthworx, with Emily joining the team during the COVID-19 pandemic and discovering a sense of purpose in working in the startup ecosystem. She values learning every day, working with people she likes and respects, and having a mission that aligns with her values. 📈📈📈📈📈📈 What advice would Emily give to founder going into a pitch meeting with a VC? 1. Figure out a way to showcase your true passion for your company While 2. Making sure to touch on all the important pieces of information the investors need to know What's a not so obvious red flag for a healthcare investment? In healthcare, it is ❌not❌ understanding why your customer cares about *your thing* as one of their top five problems. Being able to articulate for whom your solution is a top 5 value prop for. If you don't know this answer = red flag 🚩🚩🚩🚩🚩🚩🚩🚩 Healthworx sets itself apart by providing access to the knowledge and expertise of a payer, which is rare in the venture capital world. "The more I know about healthcare, the less I know about healthcare." Has to be the most relatable line Emily shared. Accepting that free fall and leverage what you do know, and continue to be curious and excited about what's next in healthcare! #relatable Key Points 🗝 💰 Incentives play a significant role in shaping healthcare systems, and different payment models can lead to different priorities and outcomes. 🏥 Investing in healthcare initiatives can have a profound impact on improving access to care and quality of life for underserved populations. Joining Healthworx during the COVID-19 pandemic provided Emily with a sense of purpose and the opportunity to work in the startup ecosystem. 🔍 Healthworx differentiates itself by providing access to the knowledge and expertise of a payer, which is rare in the venture capital world. 👂https://lnkd.in/dsfk6kai Catch the entire episode of Digital Health Heavyweights Podcast episode 51!

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Ookuma Diamond Device has raised a total of USD27M through a combination of equity and debt financing. GCP has invested as a lead investor in this round.   They have consistently achieved significant milestones—remarkably so for a deep tech company. This kind of progress is truly rare in the deep tech space.   In addition to nearing mass production, ODD have been attracting top talent from across generations, which is crucial for scaling up production. The collective wisdom of Japan's semiconductor, materials, and process experts is coming together.   Of course, for deep tech, mass production is the biggest hurdle. We hope ODD remain focused and continue updating the global industrial infrastructure, starting from Okuma Town!   TechCrunch： https://lnkd.in/gK2hqWic

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❌Not all POCs are equal❌ Some are your first steps to a 9 digit multi-year contract. Others are a waste of resource. Before you sign your first POC with a major corporate, here are my 3 key takeaways: 😱A rushed small/free POC for your green/blue tech 3 months before an AGM could signal a customer using you for PR rather than real business. You might break your back rolling it out in time for very little revenue, and no long term prospects. 🤝Know who you are talking to and if goals align. Ideally, your success aligns with their KPIs (and year end bonus). For example, usually R&D teams want to showcase your technical prowess, sales teams want to add revenue, and management want to see lower costs. 🏆You NEED an internal champion. To backchannel info, inform you where things are at exactly, key considerations of each stakeholder, etc. Even Paul Atreides needed an internal champion in Stilgar to go “LISAN AL GAIB!!!” for N times. It’s counterintuitive to turn away business. But the only thing worse than having no revenue is having no revenue while spending lots of your startup’s scarce resource. A big appreciation to Vanessa Ho for an expertly moderated panel, and thank you Dr. Viveka Kalidasan, PhD and River Venture Studio for having me.

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