Toronto, Canada – AXL, a newly launched Canadian venture studio, has embarked on an ambitious mission to build 50 AI-powered companies over the next five years. This initiative aims to bolster Canada’s position in the global AI landscape by transforming world-class AI research into high-growth commercial ventures. The launch follows the successful first closing of its venture fund, raising $15 million CAD.
Co-founded by Daniel Wigdor, a prominent figure in Canada's tech ecosystem, AXL seeks to reinvest in the country's innovation landscape. Wigdor, who previously sold his company Chatham Labs to Meta, is leading the fund's investment efforts. The studio is supported by a coalition of Canadian industry leaders and academics, including David Martin of Smart Technologies, Gord Kurtenbach formerly of Autodesk Research, and Rob McEwen of McEwen Mining, to name a few.
Canada's AI sector has been under pressure due to a significant outflow of talent and intellectual property, often heading to American firms. Over the past decade, more than 70 Canadian AI companies have been acquired by U.S. firms, and many Silicon Valley companies have established offices in Canada, siphoning off valuable intellectual assets. According to a 2018 Element AI study, this trend has resulted in a net outflow of talent from Canada.
“Canada has pioneered many breakthroughs, including in AI, but historically, we've failed to retain the value of these innovations within our borders," said Daniel Wigdor, Co-Founder and CEO of AXL. "Our goal is to connect Canada’s AI excellence with market needs, ensuring our innovations scale globally from home soil.”
AXL’s venture studio model uniquely positions itself by integrating cutting-edge AI research from the University of Toronto with market demands through its AI Catalyst program. This initiative partners with leading Canadian companies like Dillon Consulting to explore AI applications, thereby anchoring ventures in real-world industry needs.
“Our corporate partnerships are the engine that turns lab breakthroughs into ventures with significant market traction,” said David Sharma, Chief Growth Officer at AXL. “By aligning innovation with industry demands, we ensure the rapid adoption and success of these ventures.”
As Canada is recognized as an epicenter of modern AI by NVIDIA’s Jensen Huang, the country’s leadership in applied computing stands poised to transform foundational research into practical, everyday tools. Daniel Wigdor emphasized that the true power of AI lies in its practical applications rather than solely in large models or infrastructure.
AXL's mission is to establish a self-sustaining AI ecosystem in Canada, retaining talent, intellectual property, and fostering economic growth. "We want Canadian entrepreneurs to have the opportunity to build world-class AI-powered companies right here," Wigdor added. “Through AXL, we're creating the infrastructure necessary to transform innovation into lasting impact.”
For those interested in learning more about AXL’s efforts in transforming AI research into commercial success, visit their website at www.axl.vc.
