ventureLAB, the technology hub based in Markham, has signed a strategic cooperation agreement with a state-owned investment company in Guangzhou, China, to set up a technology business accelerator in the city's Baiyun District. The organization announced the deal on Feb. 26.
Its partner is Guangzhou Baiyun International Investment Development Co., Ltd., known as Baiyun International. According to ventureLAB, the company was created in October 2021 with 68.88 million yuan in capital, is the main investment arm of the Baiyun Investment Group and has been designated by the district government as its state-owned vehicle for attracting investment.
The accelerator is aimed at fast-growing Canadian companies in hardtech and deep technology that want to sell into international markets. Under the agreement, ventureLAB will introduce promising companies to Baiyun District, while the arrangement will also support businesses in Baiyun that want to expand overseas.
What the agreement covers
ventureLAB listed several pieces of the partnership:
Dedicated incubation space in Baiyun District for companies that ventureLAB introduces
Joint development of a two-storey incubation hub in Hong Kong
Work with the Baiyun Investment Fund to connect scaling companies with capital and growth financing
Administrative and operational help to make it easier for participating companies to enter the market and set up there
The organization said the accelerator will offer workspace, links into the local business community and administrative support, with the goal of lowering the barriers companies face when they enter a new market and shortening the time it takes them to scale.
ventureLAB described the agreement as a framework for future accelerator programs and investment work tied to specific projects. It did not announce an opening date, how many companies would take part or any dollar figures for the accelerator itself.
This agreement reflects ventureLAB’s commitment to building international bridges that accelerate commercialization.
— Hugh Chow, CEO, ventureLAB
Chow added that when Canadian founders gain access to global markets, capital and partners, new technology can move out of the lab and into real commercial use.
Deng Peng, investment director of Baiyun International, said the agreement opens up international growth opportunities for the innovation communities on both sides. For Baiyun District, the release said, the partnership is meant to attract high-technology companies and speed up the modernization of local industry.
The Markham connection
ventureLAB operates from 3600 Steeles Ave. E. in Markham, where it runs a 50,000-square-foot facility that includes $11 million in labs. It describes itself as a founder community for hardware technology and enterprise software companies in Canada.
The organization says it has worked with more than 4,000 technology ventures since 2011, and that its programs have helped companies create over 7,100 jobs and raise more than $480 million in investment capital.
For ventureLAB's portfolio companies, the hub said the new arrangement is intended to open doors to international customers and partners, advanced manufacturing capacity and growth capital, while helping them stay competitive at home.
