The Tech Factor

Carbon Upcycling Technologies, a Calgary-based carbon capture cement company, has secured up to $10 million in financing from ATEL Ventures. The deal will support Carbon 1 Mississauga, its first commercial facility, currently under construction in Ontario. The company expects the facility to begin operations in the second half of 2026. Carbon Upcycling builds systems that capture CO₂ directly from cement kilns.

As part of its broader push to strengthen regional innovation ecosystems, the Government of Canada is investing C$910,000 to support early-stage entrepreneurs in Saskatchewan. The funding, announced by Prairies Economic Development Canada (PrairiesCan), will support the Saskatoon Regional Economic Development Authority (SREDA) in delivering programming through the SK Startup Institute.

The Government of Canada has announced new funding to help an Alberta technology company expand its use of AI (artificial intelligence) and compete in global markets. The federal investment of over CA$1.1M will support Landing Zones Canada Inc., a Medicine Hat–based firm developing technologies that combine artificial intelligence, machine learning, and advanced sensing systems.

The Canadian government has taken a step toward strengthening its defence industrial base with targeted funding for two Alberta technology firms, underscoring its broader push to build sovereign manufacturing capacity in critical defence sectors. Ottawa has announced more than C$6.5 million in federal support to expand domestic production of defence-relevant systems in the Edmonton region.

Enterprise modernization used to be a budgeting problem. Now it is a compounding capability problem. Harder, because AI raises expectations for speed while exposing the weakest parts of a technology estate. Easier, because AI can justify modernizing foundations that have been neglected for years. The problem is that many organizations are treating AI as a layer they can add on top of legacy systems. That approach fails in practice.

The Government of Canada has announced CA$2.8 million in new funding to support artificial intelligence (AI) adoption, digital literacy, and economic development in northern communities. The announcement, made on February 6 by the Canadian Northern Economic Development Agency (CanNor), supports four projects across Nunavut, the Northwest Territories, and Yukon.

Halifax-based cleantech company pHathom Technologies has closed a $4 million seed financing round, bringing its total committed capital to more than $12 million. The company is developing a carbon capture and storage system designed for coastal industrial and bioenergy facilities. The round was led by Propeller Ventures, with participation from Carmeuse Ventures, Invest Nova Scotia, and the New Brunswick Innovation Foundation.

A rare earthquake briefly rattled Canada this week. No, we’re not alluding to the 3.7 magnitude event in Ontario, but the one that hit the tech startup ecosystem! A brief line change on Y Combinator’s website triggered an outsized reaction in Canada this week. The Canadian startup ecosystem just learnt that Canada no longer appeared among the jurisdictions YC directly invests in.

In the photo: Nicolas Lapointe, CTO of Point Laz (right). Image courtesy: Point Laz. Quebec City-based Point Laz has announced a new CA$3 million funding round. i4 Capital Fund, a Canadian seed-stage venture capital fund focused on breakthrough technologies, led the round. In addition, Fonds Impulsion, managed by Investissement Québec and financed by the Government of Québec, also participated in the same.

Toronto-based voice platform for e-commerce brands, Consio AI, has announced a CA$3.3M (US$2.5M) seed round. RTP Global, an early investor in Datadog and Delivery Hero, led the fundraise. In addition, Jason Lemkin’s SaaStr Fund, Mu Ventures, the founders of Gorgias, and operators from Ramp and Datadog also participated in the same. With this round, Consio plans to expand its engineering, sales, and partner teams to meet growing inbound demand.