A Toronto startup studio has some new ideas on how to build the next Shopify.
What happened: Simple Ventures has raised $15 million in fresh capital to help fund and build the next wave of fast-growing Canadian businesses. The companies’ A-list investors include Shopify president Harley Finkelstein, TD Innovation Partners, and Sobeys.
- Co-founder Rachel Zimmer told The Peak that, at its core, the firm is “trying to create companies that otherwise wouldn't exist.” Since early 2024, the venture studio has launched three businesses and has several more in the pipeline.
Catch-up: Simple Ventures’ model is different from traditional VC in a couple of ways. First, they build companies in-house by investing in promising ideas rather than established businesses. Second, they focus mostly on bringing concepts to Canada that have already done well abroad, which Zimmer says helps de-risk those early investments.
Why it matters: Just under a third of “high-potential” startups with Canadian founders launched last year were headquartered in Canada, down from 67% between 2015 and 2019. Zimmer says Simple Ventures’ goal is to provide the right mix of capital and connections to build and keep more of those high-value Canadian-led startups in the country.
Zoom out: Zimmer says access to top-tier talent remains one of Canada’s main draws. Economist Tyler Cowen — widely considered an expert on identifying tech talent — wrote recently that the Toronto suburbs are one of the most neglected talent hubs in the world.—LA