Partners for Prosperity and Innovation – Part 2November 2020

To complement the fiscal sustainability analysis, the DEEP Centre conducted a series of semi- structured executive interviews to gain a richer qualitative understanding of the viability of the various revenue models for different types of BAIs. [...] More specifically, we summarize input from executives on the role of BAIs in building the top of the startup funnel and fueling economic development, the rationale for balanced public- private funding models, the importance of tying funding to measurable outcomes and ROI, and their challenges with the current funding approach for BAIs in Canada. [...] The surplus dilutes the impact of the whole ecosystem and makes it harder for the top performers to rise above the noise. [...] The operating expenses of BAIs are non-trivial and the foundation is very important to the success of the program.” “They could help us with funding to do business development. [...] Now we have gone upmarket to work with Series A companies with a focus on paid services." In light of these challenges, executives made a consistent call for the government to treat early-stage support as a public good and to continue to invest in developing the pipeline.