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Paving a new era for startup legal support: DMZ’s IP Clinic unveiled

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Paving a new era for startup legal support: DMZ’s IP Clinic unveiled

Coming from a tech startup incubator, we get it — the entrepreneurial journey is a rollercoaster ride, and legal potholes can be deal-breakers. That’s why DMZ’s Startup Legal Support (SLS) team and Toronto Metropolitan University’s Lincoln Alexander School of Law have worked together to launch a new Intellectual Property (IP) Clinic, a game-changer in the dynamic world of startup legal support.

As a company grows, so do the legal challenges.

Despite the fact that 70% of businesses earn enough revenue to surpass eligibility for free legal aid, most still grapple with affording the substantial costs of hiring a lawyer. DMZ emerges as a pivotal solution for these startups, acting as their legal compass. In doing so, DMZ not only helps startups maintain their competitiveness but also contributes to making legal services more accessible.

Through the generous support of Innovation, Science and Economic Development Canada (ISED), Lincoln Alexander School of Law and DMZ have collaborated to introduce the IP Clinic, a new initiative aimed at providing startups supported by Toronto Metropolitan University (TMU) with comprehensive legal services. Nicholas Hill, Head of Startup Legal Support and Legal Advisor, spearheads these services with the support of three TMU law students, Ikra Saeed, Isabella Spiliakos and Shany Raitsin, who work under his supervision.

Intellectual Property isn’t a luxury, but a strategic necessity for startups.

As a strong proponent of the DMZ’s IP Clinic, Dr. Sari Graben, Associate Dean Research and Graduate Studies, notes that the Clinic plays a vital role in advancing the competitiveness of Canada’s startup ecosystem. “Our grant and innovative idea to launch IP legal services for startups aligns seamlessly with Lincoln Alexander Law’s vision to enable lawyers to tackle novel challenges in an increasingly innovation-based economy.”

The IP Clinic will enhance the accessibility of legal resources and knowledge to over 500 entrepreneurs within Toronto Metropolitan University’s Zone Learning Network. To date, the Clinic has been instrumental in servicing over 70+ startups, producing over 200 deliverables. “This IP Clinic marks a crucial step forward in our mission to empower startups with the legal knowledge they need to thrive,” says Nicholas Hill. “We’re excited about the positive impact this will have on our entrepreneurial community.”

As DMZ’s SLS opens up this new avenue of legal support, we have seen just how coveted IP services really are. Moreover, the IP Clinic’s value doesn’t just stop at startups.

We’re exposing law students to real-life case studies.

Beyond providing startups with essential legal assistance, we’re helping students navigate the legal ins and outs of the startup world. These students don’t stand on the sidelines, they’re gaining first-hand exposure to complex legal documentation and practical experience from Intellectual Property assignments to brand protection.

To sum it up, introducing IP legal services like those provided by DMZ sparks groundbreaking transformation, propelling the overall growth and success of these innovative ventures, and elevating their competitiveness to compete on the world stage. The collaboration of legal experts, aspiring law professionals and startups creates a recipe for entrepreneurial success in Canada’s startup ecosystem.

To learn more about DMZ’s legal support for startups, visit dmz.to/SLS.

Year in Review: DMZ Wrapped 2023

The stats are in! Let’s take a look at our feats this past year.

This year truly soared to unprecedented heights, from supporting more than a hundred dynamic startups here at our HQ to helping international founders making groundbreaking strides in innovation and global expansion.

Raise a glass with us as we toast to the incredible accomplishments and milestones that defined our community’s success in 2023.


We’ve always been at the forefront of supporting startups, and this year was no exception. Throughout 2023, we proudly supported an array of startups spanning diverse industries. From PropTech, Automation SaaS, Supply Chain and Logistics to FinTech and Cybersecurity, we’ve had the privilege of nurturing the growth of businesses driving impact across many unique verticals.


Among many exciting announcements in 2023, we were proud to become UBI Global’s official research and selection partner this year and revealed the top-ranking incubators and accelerators worldwide on stage at the World Incubation Summit in Belgium.

Our year in review wouldn’t be complete without mentioning Collision 2023. Marking the start of Collision week, DMZ’s Insiders Event showcased top startup pitches and awarded $65,000 in funding to the winning founders.


The event included an esteemed audience of industry leaders and saw David Walmsley, Globe and Mail’s Editor-in-Chief, deliver a memorable keynote speech.

If you’ve been keeping up with us this year, you’ll know that DMZ marked 2023 as the year of the camel startup. DMZ’s prominent presence at Collision featured a 7-foot camel, a stage with partner and founder panels, global showcases, a “Shark Tank” style pitch competition and more, and prize giveaways over the three-day conference.


Our commitment to empowering international startups reached new horizons through global partnerships, such as DMZ’s collaboration with the Japan External Trade Organization’s (JETRO) Global Acceleration Hub, marking a significant milestone as its first Canadian partner.


This year fueled collaborations with both existing and new partners that packed a heavy punch for the startup innovation landscape. 2023 saw us join forces with 25 new partners and continue great work with existing partners, including Amex Canada, Scotiabank, Desjardins, and Groundbreak Ventures.


With over 860 student entrepreneurs supported and a whopping 1,294 individuals attending Masterclasses, we’ve unlocked a new level of potential for the next generation of tech pioneers.


Embracing diversity in our programs has always been a cornerstone of our efforts, and this year we’re proud to share that 20% of our Incubator companies were founded by Black entrepreneurs and 24% by women.


Hot off the press! DMZ and our startups were talked about… a lot.
Our startups shone brightly, garnering an astounding 35,400 media impressions over the year!


There was never a dull moment at DMZ’s bustling entrepreneurial hub. With 7,000+ visitors over the year, our team hosted 123 groups for tours and 127 events at our HQ in Toronto.

Coffees were flowing year-round, with 8,685 cups served this year, igniting our creative sparks while our startups and staff worked hard. But that’s not to say we didn’t also play hard – 1,926 ping pong matches were held in our games room.

Our staff also embarked on our own entrepreneurial endeavours this year, 3D printing a total of 1,129 camel structures.

What a year! 2023 was an opportunity for DMZ to recalibrate – to hone in on evolving our programs and operations – and we’ve made significant progress in this direction. Now, on the brink of our 14th birthday this upcoming year, there’s a whole lot more to look forward to. Stay tuned for another promising year ahead.

Want to play a role in contributing to DMZ’s 2024 stats and milestones? Discover DMZ and our programming here. Don’t forget to sign up for our newsletter to get the latest tech news, updates, and special offers.

Beyond traditional therapy: new avenues for mental well-being

How DMZ alumni Blue Guardian, Layla and OPTT Health are pioneering change.

As we bid farewell to summer days, let’s keep in mind that the changing seasons can often bring a subtle shift in our emotions, making it all the more important to seek mental health support when needed.

In light of World Mental Health Day, DMZ wanted to shine a light on how the landscape of mental health care is evolving rapidly, thanks to innovative startups like Blue Guardian, Layla and OPTT Health.

These DMZ alumni are at the forefront of a transformative wave that’s reshaping the way we address mental well-being. Here’s what they shared with us about the future of mental well-being support.

Blue Guardian

As mental health technology evolves, how do you envision the future landscape of mental well-being support?

In the future, AI-driven systems will offer personalized, accessible, and continuous mental well-being support by analyzing individual mental health data, enabling early interventions, therapeutic conversations, and aiding clinicians in making faster, more accurate decisions for a broader population.

How does Blue Guardian’s emotional analysis identify potentially harmful language in communication on children’s devices?

Blue Guardian employs an innovative approach to safeguard children’s emotional well-being in their digital interactions. Its advanced AI algorithms are specifically designed to detect potential mental health cues and signs of emotional distress in their language. When concerning language is identified, Blue Guardian engages children through a chatbot interface, encouraging them to share their feelings and emotional state in a non-intrusive manner. The chatbot then compiles a report for mental health professionals, enabling early intervention and support, ultimately enhancing children’s emotional well-being in the digital age.

How does Blue Guardian empower parents to be more in tune with the mental health of their children?

A multifaceted support system; through real-time alerts, parents receive timely notifications when potentially concerning language or emotional distress is detected in their child’s digital interactions, allowing for immediate intervention. The system’s detailed reports offer a comprehensive overview of their child’s emotional state, enabling parents to identify patterns and areas of concern.

 

Layla


As mental health technology evolves, how do you envision the future landscape of mental well-being support? 

We envision a future of highly personalized and integrated healthcare, including mental health, using advanced platforms to improve accessibility, timeliness, and specialization. Data-driven technologies will provide valuable insights for personalized mental health journeys and treatment plans. Ethical AI may enhance backend operations and potentially augment mental health care, but concerns about efficacy and patient safety remain in this evolving field.

How does Layla ensure clients receive effective and personalized care from its therapists throughout their therapeutic journey?

Layla Care prioritizes client-centric mental health services by partnering with skilled, diverse therapists. Our therapists speak 27 languages, 35% are BIPOC, and 27% specialize in LGBTQ2S+ issues. With an average of 10 years of experience, they can cover up to 35 primary concerns. Our selection process ensures the highest standards, with only 25% of applicants accepted. Each client is assigned a dedicated Care Coordinator for support throughout their journey.

How does Layla’s approach to therapist-client matching foster a strong bond between clients and therapists, and what specific factors are taken into account during this process?

When matching clients with therapists, we consider clinical, logistical, and interpersonal fit. Interpersonal factors greatly impact therapy success, with over 70% relying on them. Many of our clients prefer matches based on personal identifiers like gender, language, race, disability, or LGBTQ2+ status.

OPTT

OPTT, a presenting company at the 2022 OBIO Investment Summit, selected for Morgan Stanley's Multicultural Innovation Lab — OBIO - Ontario Bioscience Innovation Organization

As mental health technology evolves, how do you envision the future landscape of mental well-being support? 

Current mental healthcare faces scalability issues due to a shortage of clinicians. While machines can’t replace human connection, technology can enhance clinicians’ abilities, offering curated content for patient self-learning and generating initial responses. Mental health technology can also help determine individual care needs, reducing wait times for less intensive resources and prioritizing care appropriately.

How does OPTT empower clinicians to deliver high-quality mental health care in a flexible and accessible manner?

OPTT offers two cutting-edge products for data-driven patient care. The first is structured CBT (Cognitive Behavioural Therapy) content that empowers patients to engage at their own pace, while clinicians provide personalized feedback on assignments. This approach enables clinicians to assist 3-4 patients per hour, significantly boosting their capacity.

The second product leverages AI/ML algorithms to evaluate patient mental status, predict care adherence with 70% accuracy (four weeks in advance) and suggest the most appropriate care path. These algorithms also highlight relevant patient work, allowing clinicians to review and modify feedback efficiently. As a result, clinicians can spend just 10-15 minutes per patient while upholding the highest standards of care quality.

Can you discuss the significance of continuous remote monitoring in maintaining and improving patients’ mental health over time, and how OPTT’s tool facilitate this process? 

When devising a long-term care plan, the primary consideration is enabling symptom monitoring outside of clinical settings, akin to how a glucometer aids diabetic patients. That is what we have been trying to do with our remote monitoring algorithms; to remotely monitor patients’ mental status and predict and prevent the next episode before it happens, adopting a proactive rather than a reactive approach. 

In crafting these solutions, user-friendliness is paramount. The most effective technologies are either entirely passive or require minimal effort from the user. This is why we’re integrating our natural language processing algorithm with other indicators, such as voice biomarkers and sleep and activity patterns gathered by devices like Fitbits. This amalgamation aids in comprehensive remote mental status evaluation. While our expertise lies in natural language processing algorithms, we actively collaborate with other tech innovators to enable us to integrate their advancements into our assessment tools, aiming for a holistic, remote understanding of a patient’s mental well-being.

We hope you’re as inspired as we are from seeing so many companies like Blue Guardian, Layla and OPTT Heath bringing tech and innovation to the field of mental health support. Keep up with how our other tech startups are solving unique challenges by subscribing to our TechTalk newsletter here.

The power of local: How Innisfil is fuelling economic growth and retaining top talent

How one small town is paving the way for sustainable regional growth


Innovation and entrepreneurship are not just buzzwords, they are the driving forces behind economic growth and opportunity. While big urban cities have been the traditional hotspot for startups to thrive, the notion of a startup hotbed being limited to bustling metropolitan centers is rapidly changing. Now, rural communities across Canada are demonstrating that they, too, have the potential to cultivate successful businesses and retain top talent.

Jelmer Stegink, Program Director of DMZ Innisfil, at DMZ Innisfil office.

Take Innisfil, Ontario, as the perfect example — a small town in Canada that faced the challenge of 82% of its residents leaving town for work every day. The town’s Mayor, Lynn Dollin, and her team recognized the need to create and support the jobs of tomorrow right in their own backyard. “Prior to the pandemic there was this misconception that founders needed to live and work in the GTA in order to tap into innovative resources, peers and programming,” says Mayor Lynn Dollin. “So in rural communities like ours, residents felt they had to spend hours in traffic to drive to a congested City to do their business.”

Enter Innisfil’s partnership with DMZ, the world’s leading startup incubator. Since its launch in 2020, DMZ Innisfil has successfully supported more than 35 local entrepreneurs to develop and grow their businesses, raising $10M in growth capital through DMZ programming and generating $1M+ in revenue.

But the real story here is how Innisfil has embraced entrepreneurship and innovation. By investing in programming to help business owners thrive, Innisfil has set a benchmark for how rural Canadian towns can encourage citizens to advance their local economy while creating the future they want in their hometown.

 “Through delivery of the DMZ Innisfil program over the past few years we’ve been able to demonstrate that innovation is a mindset, not a geography, and rural areas have just as much creativity and ambition as our urban counterparts,” says Dollin. “By bringing together like-minded entrepreneurs through DMZ Innisfil programming and events we’ve seen local founders flourish, enjoying better life work balance by the lake all while accessing world-class mentorship and support.”

The power of collaboration and support cannot be underestimated. One shining example of this synergy is the incredible success story of Fractional SaaS, a dynamic startup that found its footing with the invaluable assistance of DMZ Innisfil.

For founder Andrew Rains, the decision to move to Innisfil in 2018 was driven by a desire to seize emerging opportunities and raise a family. Little did he know that this small town was on the brink of an entrepreneurship revolution. 

When the pandemic struck, the Town of Innisfil faced a myriad of issues that demanded innovative solutions. DMZ, in partnership with the Town of Innisfil, launched a competition to address these challenges brought on by COVID restrictions. Fractional SaaS rose to the occasion by submitting a successful operations management solution in response to the Town’s call for better boat management at their marinas. This milestone became a turning point for Fractional SaaS., as it not only showcased their capabilities but also provided an opportunity to make a meaningful impact within the local community.

Fractional SaaS revolutionized marina operations in Innisfil, earning acclaim from the Town for their impactful solutions. They have expanded their services to other municipalities, positioning themselves as trusted partners for local governments. With DMZ Innisfil’s ongoing support, Fractional SaaS is poised for even greater accomplishments, connecting their team with the right people at the right time.

Fractional SaaS’s success story exemplifies the power of collaboration, with DMZ Innisfil playing a pivotal role in their journey as they continue to make a lasting impact, propelling innovation and community empowerment for different rural regions. 

 “Rural communities have become fertile ground for entrepreneurial growth. The notion that thriving innovation ecosystems are exclusive to major cities is now a thing of the past. Through my journey with Fractional SaaS, I’ve witnessed firsthand the hunger and the untapped potential in these communities. With the invaluable networks, resources, tools, and connections provided by DMZ Innisfil, startups are empowered to thrive and succeed!” –  Andrew Rains, Co-Founder of Fractional SaaS. 

Fractional SaaS is just one success story out of many. DMZ Innisfil is proud to welcome their most recent cohort of innovative businesses: What’s For Dinner Today, Behind Every Home Inc. o/a siikafoods, Directline Telecommunications, NewRidge Refinishing Group, Innisfil BJJ, MuniPaaS, NT Temps, Moon Cafe and Craft Beer, Roof Rejuvenation, Local Plumbing & Drains, Innisfil Wellness, and DriVR Academy.

Innisfil’s success shows that entrepreneurs no longer need to leave their hometowns to build successful businesses. Through their partnership with DMZ, they have developed tailored, localized entrepreneurship programming with a global mindset.

Check out just a few ways DMZ Innisfil is delivering big city resources to their town:  

  • Community: A vibrant community of like-minded entrepreneurs and business pros where you’ll feel right at home 
  • Mentorship: Expert guidance and support from Experts-in-Residence, an in-house legal team, and a network of peers who are driven to succeed
  • Fundraising: Connect with investors, unlock exclusive grants and get the chance to pitch at high-profile events like Collision.
  • International connections: Plug into DMZ’s global network of incubators in 10+ countries around the world for resources and introductions in new markets.  

Rural municipalities are often focused on building strong and vibrant communities that provide opportunities for growth and development while retaining the best and brightest talent. Recognizing this, DMZ champions municipalities by working with them to design tailored business support programming, empowering them to help their community capitalize on global resources while focusing on local economic growth.

The story of Innisfil’s success is a reminder that great ideas can come from anywhere and that the future of entrepreneurship is not limited to large urban centers. 

If you’re a municipal leader looking to empower your small business owners with the tools and connections to become world-class ventures while staying integrated within your local communities, DMZ is here to help. We’re committed to bringing innovation and entrepreneurship to all corners of Canada.

Applications for DMZ Innisfil’s Startup Incubator program close on July 21, 2023. Don’t wait – apply here. Interested in learning more? You can find out more about DMZ Innisfil here and more about the DMZ here.

 

2023 federal and provincial budget digests

How the 2023 federal and provincial budgets will impact the startup and innovation economy

 

In March, the federal and provincial governments unveiled their highly-anticipated budgets. With both plans moving from COVID-19-specific funding and focusing on lightening deficits and combatting inflation, we now have glimpse into what the road to a more robust economy looks like.

DMZ has reviewed the Ontario provincial and federal government budgets and identified key commitments that impact the startup and innovation economy.

Here’s what you need to know about both budgets:

Federal budget highlights

The full federal budget can be found here.

Small business support

  • Lowering credit card fees: The federal government has reached an agreement with Visa and MasterCard to reduce credit card fees by up to 27%.
    • This reduction will help small businesses save $1 billion over the next five years.

Innovation

  • Canada Growth Fund: The government intends to introduce legislation to enable the Public Sector Pension Investment Board to manage the assets of the Canada Growth Fund to deliver on the Growth Fund’s mandate of attracting private capital to invest in Canada’s clean economy.
  • Supporting Canada’s leadership in space: The government invested just under $2.8 billion to get Canadians — and Canadian technology — into space, onto the moon and beyond.
  • Canada Innovation Corporation: The government invested $2.6 billion for the new Canada Innovation Corporation, which will support Canadian businesses in investing in research and development.
  • Scientific Research and Experimental Development Tax Incentive: The Department of Finance will continue to engage with stakeholders on the next steps of the SR&ED program to ensure it is providing adequate support and improving the commercialization of intellectual property.

Transition to the green economy

  • Clean electricity investment tax credit: A 15% refundable credit to support non-emitting generation systems, storage and transmission.
  • Clean technology manufacturing: A 30% tax credit for new machinery and equipment used to manufacture or process key clean technologies and extract key critical minerals.
  • Clean hydrogen: Up to 40% tax credit for projects producing clean hydrogen.
  • Strategic Innovation Fund: A $500 million commitment over 10 years to support the development and application of clean technologies in Canada.
  • Smart Cities Challenge: The government will be launching a new round of the Smart Cities Challenge later this year, which will focus on using connected technologies, data, and innovative approaches to improve climate resiliency.

____________

Provincial budget highlights

The full provincial budget can be found here.

Innovation

  • Underserved entrepreneurs: Investing an additional $15 million over three years for the Racialized and Indigenous Supports for Entrepreneurs (RAISE) Grant Program that includes support for Indigenous, Black and other racialized people, as well as an additional $3 million in the Black Youth Action Plan
  • Innovation hubs:
    • Providing an additional $1 million per year for three years to Invest Ottawa, starting in 2023–24, to expand into a Regional Innovation Centre hub for Eastern Ontario.
    • Committing an additional $2 million in 2023–24 to Futurpreneur Canada.
    • Providing $4 million in 2023–24 to support the City of Brampton in attracting more entrepreneurs and business investment to help drive economic growth.

Skills development

  • Mitacs: Investing an additional $32.4 million over the next three years to support 6,500 high‐quality research internships through Mitacs.
  • Skills Development Fund: Providing $224 million in 2023–24 for a new capital stream of the Skills Development Fund to leverage private-sector expertise and expand training centres.

International talent

  • Ontario Immigrant Nominee Program: Enhancing the Ontario Immigrant Nominee Program with an additional $25 million over three years to attract more skilled workers, including in-demand professionals in the skilled trades, to the province.
  • Ontario Bridge Training Program: Expanding the Ontario Bridge Training Program with an additional $3 million in 2023–24 to help internationally trained immigrants find employment in their fields and get faster access to training and support towards a licence or certificate.

Manufacturing

  • Ontario-made tax credit: A 10% refundable Corporate Income Tax credit to help local manufacturers lower their costs, invest in workers, innovate and become more competitive.

Business savings for Ontario employers

  • Tax relief for small businesses: Improving competitiveness by planning to enable an estimated $8 billion in cost savings and support for some Ontario employers in 2023, with $3.6 billion going to small businesses.
    • This would provide Ontario’s small businesses with additional Ontario income tax relief of $265 million from 2022–23 to 2025–26.

Electric vehicle investments

  • Electric vehicles (EV): Attracting over $16 billion in investments by global automakers and suppliers of EV batteries and battery materials to position Ontario as a global leader in the EV supply chain.

Are you a founder trying to navigate the startup ecosystem? Learn more about programming DMZ offers here.

What contracts do you need for your startup?

This is a DMZ guest blog by Konata Lake and Wendes Keung of Torys LLP.

Building a startup is challenging. You need to balance cash flow control, product development, go-to-market strategies, talent, branding and working in perpetual ‘go’ mode. And then there is the back-end work—the part that you don’t look forward to—financial records, information management systems, documents, policies and procedures, and, of course, contracts. Although a good contract doesn’t feel quite as rewarding as building your product or closing a deal, it’s an essential building block for a successful startup.

The best contracts are always ones that are drafted with your product, business model and consumer base in mind. Early-stage startups can be tempted to use online templates, but templates can leave you vulnerable. Most templates favour one side or are drafted ambiguously in a way that leaves interpretation up for debate.

We thought we would break down a few key contract non-negotiables to always keep in mind.

Your service offering and crown jewels

  • Services: The agreement should clearly describe the services that will be provided and what is included or excluded as part of the project scope. For example, will your service include software licenses, hardware, software, professional services, training, installation/integration, or maintenance and support? The agreement should be clear about allocating responsibilities, development milestones, and milestone deadlines.
  • Intellectual property: Your intellectual property (IP) is your most valuable asset. Investors will closely scrutinize your IP clauses to confirm that you actually own your IP. Here’s what to look out for:
    • Effective license rights if you are licensing your IP to customers via service agreements or if you require the customer’s data to deliver the services. 
    • Ensure your IP clauses in employment agreements and independent contractor agreements are clear about ownership. In Canada, the default for IP ownership developed by an employee is ownership by the company unless the contract says otherwise— however, the opposite is true for contractors and consultants.

Managing data

  • Confidential information: The definition of confidential information typically covers any information disclosed by or on behalf of a party to the other party that is marked as confidential or that reasonably should be understood to be confidential. Confidentiality terms are crucial to ensure that the person you are negotiating with won’t steal your secrets.
  • Customer data: If you are dealing with customer data as a part of your service, be prepared to answer questions on privacy and security. Customers will likely want to know the security requirements you have in place to protect their data. If you will be collecting, accessing, using, or disclosing personal information, consult a privacy expert to ensure that you’re compliant with appropriate privacy laws. Certain jurisdictions, such as the EU, UK, Switzerland and California, have specific requirements that companies must follow if they deal with individuals in those jurisdictions.

Mitigating risk exposure

  • Disclaimers: Disclaimers notify your users that you will not be held responsible for certain damages from their use of your website, products, or services. They need to be carefully structured to have legal effect. One that is too broad may be struck down by a court as ineffective. Well-crafted disclaimers go a long way in protecting a business from liability.
  • Indemnification: Put simply, an indemnification clause requires one party to compensate the other for putting that party in harm’s way. For example, if you are a software developer, your customer may ask you to indemnify them if they receive a copyright infringement claim for using your software. You would be asked to “step in the shoes” of the customer and manage the dispute. If you agree to offer an indemnity, you should limit the categories of claims that you are willing to indemnify for, put caps on the damages and consider purchasing insurance as a way to limit your financial risk and exposure. 
  • Limitation of liability: Limitation of liability clauses allow parties to limit the amounts owed by one party to the other in the face of a claim. The type of damages due or claims brought can be limited. This allows a party to avoid a “bet the business” situation by allocating risk between the parties. There are typically three parts to a limitation of liability clause to look out for: 
    1. Waiver of Indirect Damages: This clause states that a party will not be liable for any indirect damages that arise under the agreement, including any damages for lost revenue, lost savings, or lost profits. 
    2. Cap on Direct Damages: Agreements typically limit the maximum amount of damages that can be claimed as direct damages. This amount is typically tied to the fees paid under the agreement. 
    3. Exclusions: The parties may agree to exclude certain types of damages from the above circumstances. If these types of claims occur, whether directly or indirectly, the party will be exposed to unlimited liability. Parties will typically negotiate excluding claims for gross negligence, willful misconduct or fraud.  
  • Governing law & forum: The agreement should state what substantive law governs the rights and obligations of the parties and which country’s courts will hear disputes. You should consider the most practical and convenient jurisdiction if a dispute arises. If you choose a jurisdiction that is not your home court, make sure you are comfortable with their procedural system and how difficult it may be to enforce a foreign judgment domestically.

How you do business

  • Subcontracting: A contract is between two parties, and typically the rights and obligations under the contract cannot be imposed on a third party. However, third parties can sometimes be brought under a contract. For example, a subcontracting clause can be used to allow a party to assign or outsource parts or all of the obligations under a contract to a third party. You may need to rely on this clause if you have a third party hosting provider or even independent contractors working for you. Take note of language that requires you to obtain the customer’s consent before subcontracting (or to notify the customer in advance). 
  • Non-solicitation: As an early-stage company, almost all of your employees directly impact the bottom line. Non-solicit clauses protect your employees from being poached by a customer. The clause should define the timeframe, be limited to employees related to the services being provided under the agreement, and exclude situations where an employee responds to a general recruitment advertisement. 
  • Assignment: An assignment clause governs whether and when a party can transfer the contract to a third party. While agreements typically limit the ability of a party to transfer the contract without some form of prior consent, startups should ensure there is language that permits it to assign the agreement to a purchaser of its assets or shares without consent.

Many startups offer game-changing products and services to solve inefficiencies in the market, but overcoming the growing pains of launching a startup isn’t easy. A well-thought-out risk management tool often makes the difference between a successful startup and a struggling one. Good contracts are part of your risk management toolbox. A great technology contracting lawyer should be able to leverage sector knowledge and their own experience to advise you on which terms are negotiable and what is market in the industry.

Are you a startup founder with contract questions for Torys? Reach out to Wendes Keung today to get your questions answered.

 

This article appears on Torys’ Startup Legal Playbook: a guide to issues founders face as they grow their company, from ideation to exit. For more actionable insights on operating your startup, raising capital, building a team and going cross-border click here.

Top tech journalists to follow right now

When it comes to staying on top of the latest industry trends, and startup wins, following the right tech journalists can make a world of a difference.


Keeping up with where the tech space is headed, startup raises in the field, acquisitions, government initiatives and thought-provoking commentary will not only keep you informed but allow you to make better business decisions.

Here’s DMZ’s top-ten tech journalists to follow right now:

Sean Silcoff | Technology Reporter, Globe and Mail
Focus: technology and innovation

From startup raises, government initiatives, acquisitions and emerging industry trends, Sean Silcoff is known as one of the GOAT reporters at the Globe.  He is the winner of three national newspaper awards and is the co-author of Losing the Signal: the Spectacular Rise and Fall of BlackBerry, which was released in May 2015.

Looking for in-depth, objective and emerging tech news? Look no further than Sean.

 

Tara Deschamps | Business Reporter, Canadian Press
Focus: business, technology, real estate
 


Tara Deschamps currently writes for  the Canadian Press and is no stranger to major outlets, including the Toronto Star, the Globe and Mail, and the New York Times. Oftentimes bringing in a startup perspective, the bilingual reporter has covered various topics in the business sector, from technology to banking and insurance, retail and food. 
If Tara Deschamps is one thing, it’s versatile.

 

Rebecca Gao | Tech Update, Toronto Star
Focus: technology

Rebecca Gao wears many hats, three of them being a writer, an editor, and a digital content creator. These hats also include being Editor-In-Chief of the Strand and an Associate Editor at Best Health Magazine. She is also the master mind behind your bi-weekly innovation tech updates. 

Explore Rebecca Gao’s technology hat through Toronto Star’s Tech updates.

 

Meagan Simpson | Senior Editor, Betakit
Focus: Canadian technology
 

Meagan Simpon has over 6 years of experience in the journalism and technology industries. Meagan is passionate about helping startups and entrepreneurs reach their goals, and works to share their stories with BetaKit’s readers. Her work has appeared in the Globe and Mail, Toronto Star, CBC, Techvibes, and many others.

Turn to Meagan Simpson and take pride in the Canadian tech scene.

 

David Skok | CEO & Editor-In-Chief, The Logic
Focus: innovation economy

David Skok has over 15 years of experience in the media industry, having worked as a reporter, editor, and content strategist. He has an extensive background in media strategy, content creation, and digital publishing. A big name in journalism, he sits on the advisory board of the Nieman Foundation for Journalism at Harvard and as a juror for the Pulitzer Prizes in journalism. 

High-quality reporting and analysis might as well be David Skok’s middle names.

 

Lance Chung | Editor-In-Chief, The Bay Street Bull
Focus: Canadian entrepreneurship

Recognized as one of the top Canadian financial journalists by Canadian Business Journal, it only makes sense that Lance Chung is the architect and  behind renowned publication Bay Street Bull. His two decades of experience award him expertise in stock markets, currency markets, and macroeconomics.

Looking for reads that perfectly intersect Canadian business, technology, entrepreneurship, lifestyle and culture? Look no further.

 

Temur Durrani | The Globe and Mail
Focus: creator economy, Big Tech, Web3
 

Temur Durrani has reported from five continents, publishing work in the New York Times, the Guardian, and the Washington Post. He is the recipient of numerous awards, including the National Newspaper Award, the Michener Award, and the Canadian Journalism Foundation Award.

Objective journalism, informed by his unique perspective as a South Asian-Canadian, is the name of Temur Durrani’s game.

 

Camille Dundas | Co-Founder, Editor-In-Chief, ByBlacks
Focus: racial equity, Canadian businesses and entrepreneurs

ByBlacks provides a platform for Black Canadian voices to be heard and their stories to be shared. The Co-Founder and Editor-In-Chief, this venture led to Camille being named one of Toronto Metropolitan University’s “Media Makers,” an honour given to Journalism grads who have made exceptional achievements in journalism. Before ByBlacks, Camille was the Features Editor at CBC Life and, before that, the Arts Editor at NOW Magazine.

Over the course of a decade, Camille Dundas has built a career focused on creating meaningful content that engages and inspires readers.

 

Stephanie Hughes | Financial reporter, Financial Post
Focus: business news and finance

Stephanie Hughes is a financial reporter for the Financial Post, specializing in coverage of the Canadian economy. She has been covering business and economic trends since 2013, making financial news accessible to the public as an advocate for financial literacy. Her work has been recognized by the Canadian Association of Journalists and the National Newspaper Award.

All founders could use Stephanie Hughes right now as a source of insight into economic uncertainty.

 

Sarah Bartnicka | Head of Content, The Peak
Focus: business and finance, technology, economics

Sarah Bartnicka is a highly sought-after speaker on a variety of topics related to content creation, media, and entrepreneurship. She is committed to helping bring readers quality content that is both timely and engaging as Head of Content at The Peak, a five-minute newsletter on Canadian business, finance, and technology.

Wasting time is impossible with Sarah Bartnicka’s quick yet high-quality picks.

 

Want to hear our top-pick stories too? Sign up for our bi-weekly Tech Talk newsletter here!

 

 

 

 

 

 

 

 

 

 

 

Mining a recession: how tech startups can strike gold

The reality is, being a startup founder is no longer sexy. Today’s economic climate is dramatically shifting across industries — especially in tech — from layoffs and inflation to rising interest rates and a looming recession.

We all know a recession produces a range of negative impacts. However, it also presents opportunities to revolutionize and transform for those who look. The key is to be resilient, adaptable, and innovative through changing market conditions. Think Microsoft, Airbnb, Slack, and Zoom, all hugely successful companies that started during recessions. There is no question that new problems will arise, but with that, new industries, products and services will come to life — and for an entrepreneur, that’s gold.

For a long time, a startup’s ultimate goal was to achieve unicorn status, characterized by rapid growth and high valuations. In today’s climate, operating with this mindset isn’t realistic nor sustainable — inflated company evaluations do no favours to startups, especially on the heels of a recession. Instead, companies need to embody the camel, a future-orientated animal that conserves its resources to endure harsh conditions and adapt to any environment. This concept was originally coined by venture capitalist Alex Lazarow, who encourages startups to focus on building resilience and flexibility to survive and prosper long-term.

Want to strike business gold? Here’s how to embrace the camel mindset to set your company up for long-term success.


Be bullish.

Problem: Startup originality is rare. As the number of tech businesses grows, it is increasingly more work for startups to differentiate from the competition and offer truly innovative products, services and value. A more saturated market means increased competition for funding, customers and talent, leading some companies to replicate already successful business models.

Opportunity: With a recession comes new consumer needs and new problems. Now is the time to be proactive and address these needs. Stand out to investors and tap into new customer segments with a unique offering.

  1. Look for untapped needs: Be more obsessed with the problem than the solution. Identify problems that still need to be addressed or solved effectively. Unique problems = unique solutions.
  2. Seek out diverse perspectives: Look beyond your industry and sector; connect with people with varied backgrounds and experiences to gain fresh insight.
  3. Experiment: Don’t be afraid to take calculated risks and experiment with different approaches.


Optimize your human capital.

Problem: Layoffs and financial insecurity may hit your company – a recession is the time to feed the winners and cut those who are underperforming. It’s easy for team members to feel discouraged and disconnected from a company’s mission. Your company is your community; nurturing your culture in challenging times is more important than ever.

Opportunity:

  1. Prioritize honest communication: Be transparent about your startup’s position; open communication is vital to trust. Involve all levels in finding solutions to create a shared sense of purpose and belonging.
  2. Recalibrate your team: Build the right data systems, structure and practice to improve quality assurance, program execution, and team communications. This also means a smarter team to help deliver what is needed now.
  3. Remove silos: Encourage cross-functional collaboration and create opportunities to connect through events, lunches, team-building exercises, etc. Measure success and failure as a collective.
  4. Show appreciation: Recognize and reward your team for their contributions. Boosting morale is key to culture, motivation, and productivity.


Get scrappy.

Problem: Funding has always been challenging to secure as a founder, especially with the recent boom of tech startups. Throw economic uncertainties into the mix, and you have a recipe for dry capital as investors like Venture Capitalists (VCs) and Angels become more risk-averse to investing in new startups.

Opportunity: Finesse your business strategy and get scrappy.

  1. Focus on your competitive edge: Execute a clear, well-defined value proposition that demonstrates your startup’s advantage in the market.
  2. Showcase your adaptability and leadership: Investors are interested in companies that can adapt to a changing economic environment. Highlight your leadership skills, from navigating the recession to making smart business decisions.
  3. Build relationships with investors: Establish relationships before seeking funding to understand their criteria better and increase your startup’s visibility.
  4. Consider alternative financing options: Now, many financing options are available for startups with lower barriers to entry and greater flexibility. These include crowdfunding, grants, revenue-based financing, debt financing, and incubator and accelerator programs like the DMZ.

Facing a recession as an entrepreneur can be daunting, but you don’t have to do it alone. Join a startup incubator like the DMZ and participate in a community of diverse startups, mentors, and industry experts. Access resources like office space, funding, mentorship, and networking opportunities to refine your business with expert guidance.

Check out how the DMZ can help propel your business forward, even in the most challenging times here.

Want to stay up to date on the latest tech news? Sign up for the DMZ’s Tech Talk newsletter.

Your 2023 Manifestation Guide to Founder Success

This is the sign you’ve been looking for.

If you’re an avid social user — or even an occasional scroller — you’ve likely heard of manifestation. What is believed to have started as a Hinduism practice has now turned into a worldwide phenomenon trickling into the world of business.

So, what is manifestation? Simply put, manifestation is the practice of turning thoughts into reality. It requires you to be intentional with your emotions, beliefs, habits, and of course, actions. But it’s not as easy as it sounds.

Whether you believe in manifestation or see yourself as more of a goal-setter, there’s no denying the power of positive intent followed by disciplined action. Dreaming is one thing, but the day-to-day grind of a startup can be dark and challenging.

If you’re ready to hustle, keep reading to discover your 2023 manifestation guide to founder success.

Let your mind wander

Ever catch yourself daydreaming about your startup becoming the next big thing? What about securing a million-dollar funding round or landing your next big client? Don’t stop! Exercising your brain to get excited about the future is key to manifesting. Take a few moments each day to sink into your daydreams and discover what truly fuels your passion.

“When you’re passionate about your dreams, it doesn’t feel like work. Organize your life around your passion, turn your passion into your story and use that story to leave a legacy.” — Ahmer Rafiq, CEO, Souqh

Be intentional with your goals

How can you map your aspirations? Goal-setting looks different for everyone — but whether you create a detailed Excel sheet, draw up a mind map, or jot down notes in your journal, being intentional is key. Set SMART goals (Specific, Measurable, Achievable, Relevant, and Time-Bound) to achieve your desired outcome, and don’t forget to stay disciplined.

Fail quickly, learn fast

As a founder, there’s no question you’re going to fail — we all do! While it may seem like the end of the world, failure truly is the secret ingredient to success. Think of failure as a tool that helps uncover next steps by telling us exactly what’s working and what’s not. After all, Yin doesn’t exist without Yang.

“With every failure, I’m one step closer to success.” — Kelly Emery, Founder & CEO, Troop

Stay positive

Turn “I wish” phrases to “let’s do it” and “what if I fail?” to “when I succeed.” Focusing on the negative is easy, especially as a founder who inevitably hits what feels like every bump in the road. When you catch yourself drifting to that place of negativity, shift your mindset to practice gratitude and confidence. There’s nothing more powerful than believing in yourself and your business.

“Success is not defined by the end result – within every initiative, you will find an opportunity to grow, to learn and to push yourself one step closer to your goals and your success.” — Ahmer Rafiq, CEO, Souqh

Put yourself in the driver’s seat

Be accountable and disciplined. Of course, the most essential practice in manifestation is action. Joining an incubator like the DMZ helps hold founders like you accountable to your goals and provides a playbook to put dreams into action. Take ownership. You got this.

“I meditate daily, allocate time for sales calls, and have regular touch points with advisors who hold me accountable.” — Kelly Emery, Founder & CEO, Troop

 

Can you really manifest your startup dreams? Try it.

If you’re looking for a sign to join the DMZ, this is it. Check out our programs here.

DMZ’s Year in review: Coffee, capital and community

The stats are in! Let’s take a look at our feats this past year.

After an eventful 2022, the DMZ is taking a step back to appreciate all we’ve accomplished this year alongside our community and supporters — from onboarding startups to launching new programming and international expansion.

Scroll and reminisce with us!
Note: These are stats as of November 1, 2022.

Our coffee machine is one of the most popular amenities at the DMZ! It’s clearly a community favourite, with an estimated 10,438 coffees made in 2022.

Up, up, up, and away — startup fundraising numbers surged to a whopping $258,672,261 this year!


That’s right — six DMZ companies were acquired in 2022 (Sensibill, Gridcure, GrowthGenuis, InkBox, Fortuna, OnCall), and three acquisitions were made by DMZ companies: Singlekey acquired Naborly, Manzil acquired Muslim Will, and Daylight Automation (formerly known as FormHero) acquired Proof Data Technology.

Start spreading the news! In October 2022, The DMZ re-opened in New York City — a tech ecosystem valued at $147 billion — to continue empowering the next generation of global startups.

Let’s network! In 2022, the DMZ brought together over 1500 attendees in 40+ events in the tech ecosystem.

Our community had a ton of media traction over the past year. The DMZ had 2.39K+ features in the media, and our DMZ startups had an enormous media presence with 36k+ highlights.

Startups come and go at the DMZ, but they always leave an imprint in our community. This year, 357 startups graduated from DMZ programs, including Startup Certified (38 students), Basecamp (22 companies), NEP (27 companies), Launchpad (86 students), Incubator (8 companies), AMEX Blueprint (100 companies), Pre-Incubator (45 companies) and BIP Connections (31 companies).

The DMZ stays busy! This year, we ran programming for multiple existing programs: BIP Social Impact Stream fuelled by Unilever Canada, Black Innovation Connections with Dream Legacy Foundation, Launchpad for Entrepreneurs powered by Desjardins and AMEX Blueprint powered by the DMZ.

In addition, we housed the launch of the Newcomer Entrepreneurship Program (NEP) — a virtual ideation program sponsored by the Future Skills Centre and media sponsored by Canadian Business that helps Canadian newcomers develop startup fundamentals. We also partnered with Toronto-based venture capital firm GroundBreak Ventures to launch our PropTech stream as part of our incubator program to help high-potential PropTech startups transform the real estate landscape.

There’s a reason we’re known as a world-leading tech incubator. This year we received over 812 global applications. We’ve still got it.

What a year! Want to take part in 2023’s stats? Discover the DMZ and our programming here. Don’t forget to sign up for our newsletter to get the latest tech news, updates, and special offers.

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