Alpha Exchange White Paper
KITCHENER, WATERLOO and TORONTO, June 14, 2012 /CNW/ - At a technology
stakeholders' event hosted in Kitchener-Waterloo, the Alpha Exchange
today unveiled its White Paper about "Building Connections and Fixing
the Funding Challenge to Kick-Start Canada's Technology Sector".
Canada's technology sector has underperformed since the internet bubble
burst twelve years ago, more so than the technology sectors of some
other countries such as the U.S. A case in point: despite Canada's
citizens having a reputation of being highly digitally connected, our
"internet economy" as a percentage of GDP is below the G20 average and
forecast to fall further behind.
Through a review of academic research and interviews with 22 thought
leaders in the Canadian technology sector, we have scored Canada's
technology ecosystem on six functional characteristics: technical
expertise, public support, regulation, finance expertise, management
expertise and funding.
Our overall conclusion was that despite our strong technology talent,
history of public sector investment and generally supportive regulatory
environment, our shallow well of start-up management talent and mentors
as well as our poor availability of funding nets the Canadian
technology ecosystem a lackluster grade of C.
We have however identified five initiatives that could allow Canada to
kick-start the re-establishment of its technology sector with no or
minimal public money. These five initiatives, which together are
reinforcing each other, all aim at creating connections and liquidity
to allow for the successful development and funding of technology firms
through their entire life-cycle:
Connecting start-ups to talent and investors
Developing an institutionalized pre-IPO capital market
Establishing an exchange focused on the technology sector
Supporting an "angel investor" tax-credit.
"These initiatives need to take place along with a redoubled focus on
the host of other factors that create an environment for success for
Canada's technology companies." notes Jos Schmitt, Alpha Exchange CEO. "With the right choices, we can prevent the impending decline in
Canada's global technology relevance, and support the development of an
economy of the future. We believe there is tremendous untapped talent
and opportunity in the Canadian technology sector. We are ready to play
a key role in unlocking that opportunity by improving the funding
process and connecting experienced advice and leadership with
start-ups. Our first step has been the establishment of a technology
The five initiatives to kick-start Canada's technology sector
You can access Alpha Exchange's White Paper by clicking on Enabling Canada's Technology Future.
About Alpha Exchange - Alpha Exchange is part of Alpha Group, an organization set up by nine
leading Canadian financial institutions in 2007 to reinvigorate trading
in Canadian markets at a time it was characterized by a lack of
liquidity, efficiency, innovation and state-of-the art technology.
After having achieved substantial results in the Canadian trading space
with its Alternative Trading System (Alpha ATS), a marketplace
competing for the trading business with other organizations such as the
incumbent exchange, Alpha Group decided to bring similar change and
benefits in the Canadian listing space. This led to the formation of
the Alpha Exchange, the new generation Canadian exchange built on the
principles of entrepreneurship and operational excellence. Alpha
Exchange will not only foster quality listings and liquidity, but also
re-energize innovation and entrepreneurship in Canada across the
industry sectors that have been neglected over the past several years.
For further information regarding Alpha Exchange, visit www.alpha-group.ca.
Image with caption: "Alpha Exchange releases White Paper about "Building Connections and Fixing the Funding Challenge to Kick-Start Canada's Technology Sector". (CNW Group/Alpha Group)". Image available at: http://photos.newswire.ca/images/download/20120614_C8681_PHOTO_EN_15151.jpg
Image with caption: "Alpha Exchange's White Paper identifies five initiatives to kick-start Canada's Technology Sector. (CNW Group/Alpha Group)". Image available at: http://photos.newswire.ca/images/download/20120614_C8681_PHOTO_EN_15152.jpg
SOURCE Alpha Group
For further information:
Marketing, Alpha Exchange