Markham’s ventureLAB announces $5M FedDev investment to create Canada’s first “silicon incubator”

FedDev Ontario is investing $5 million over five years in Markham-based innovation hub ventureLAB to create a hardware-focused lab and incubator. Called the Hardware Catalyst Initiative (HCI), the program will help about 40 startups and scaleups in the region to develop foundational technologies for sectors like VR, AI and quantum computing.

Hardware companies face steeper hurdles than software companies at every level of their growth, but especially in the early stages, due to the high cost of specialized equipment and software licenses. “This is where we see the biggest gap,” explains Matt Skynner, ventureLAB’s chief operating officer, in conversation with RE$EARCH MONEY. “For hardware companies, the equipment to design and test products and bring them to market can be very expensive.”

HCI will help companies surmount these barriers by providing access to specialized equipment for designing, prototyping and testing products at its Hardware Ecosystem Lab, which will be located inside ventureLAB’s 50,000-square-foot facility. While other hardware-focused accelerators offer 3D printers, Skynner says that HCI is the only incubator in Canada to provide these kinds of costly tools and equipment to companies.

The initiative also includes two other components of support for participating companies: annual, cohort-based programming lasting 12 or 24 months, during which time they will receive advisory services to help them improve operations, connect to supply chains, and meet business milestones; and access to mentor networks offering sector-specific expertise from industry partners.

Skynner believes VentureLAB is well positioned in the York Region to leverage the experience and networks of existing hardware companies. The City of Markham has signalled its desire to be recognized as one of Canada's largest innovation ecosystems. At this year's Collision tech conference, Mayor Frank Scarpitti said the city has designated 1900 acres for a new innovation district.

VentureLAB’s proposal to FedDev Ontario also included letters of support from private investors who’ve committed another $2 million to support the initiative. These other investors have yet to be announced.

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