We have the talent and the foundation to lead globally—let’s ensure we’re building a sustainable future for all.

What are your thoughts? How can we balance investing in standout companies with supporting a thriving ecosystem? 🚀

Cohere is an incredible company, undoubtedly a safe bet given their traction and support. But we’ve seen what happens when large bets, like the Element AI play, don’t pan out. Our ecosystem needs diversity in investments—support for early-stage startups, growth-stage funding, and a path to exits.

While these challenges are real, Montréal’s AI ecosystem remains a centre of innovation. Our unparalleled research foundation, talent pipeline, and global reputation are assets we must nurture. But we also need a funding strategy that uplifts the entire ecosystem.

Tom Birch of CDPQ aptly described the situation as the “Land of the Living Dead,” where startups linger without exits. Without these exits, returns to LPs evaporate, recycling capital slows, and the ecosystem risks long-term stagnation.

Consider Québec’s VC landscape:
- Q3 2024 saw a 63% drop in funding volume compared to Q2.
- No exits recorded this year.
- This quarter ranked 42 out of 47 since 2013 in deal size.

😢

But… I can’t help but reflect on the broader challenges facing our ecosystem. Investing nearly a quarter-billion dollars into one company raises a critical question: Is this the best strategy when so much of the AI ecosystem is struggling? 🤔

Cohere’s achievements are extraordinary, and they deserve this support to continue pushing boundaries.