characteristics to other tech, if Canada is to participate in the AI transformation, then the country will very likely need faster & bigger rounds .
We therefore suggest that, in addition to the priorities listed in the section above, training is required to help investors understand how to assess AI native startups and make the AI transition more rapidly. This could be done through alignment and collaboration with other angel groups that have had more experience with AI (e.g. the Angel Resource Institute, headquartered in San Francisco, or the US NVCA, which operates its own ‘VC University’). In addition, we suggest that policymakers will need to pay even closer attention to how the funding landscape develops. The gap analysis in the previous section was necessarily based on historical data; however, as the AI sector develops, investors may need additional firepower beyond that estimated. 5.4. Recommended interventions Given the priorities and slightly different objectives above, a portfolio of different instruments is needed. Increasing round size can be achieved by increasing the capital of Seed VC Funds, and/or creating Angel Group Sidecars funds. Increasing the number of rounds is possible through the creation of angel group sidecars funds. Shortening the time to raise may also be achieved through angel group sidecars funds (see table):
Instrument
More injection in Seed VC Funds Yes, for top startups; very important in AI
Angel Group Sidecars funds Yes, for average and top startups
Objective
Larger rounds
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