“There’s no ecosystem here to support and invest” in domestic companies, particularly in seed rounds, AI Minister Evan Solomon said. “We have to reward people for reinvesting in Canadians.” He was speaking at an event the University of Toronto’s Rotman School of Management and the University of Calgary’s School of Public Policy hosted in Toronto on Thursday. (The Logic)

Talking point: Solomon acknowledged that incentives to invest in Canadian startups are smaller than the popular U.S. qualified small business stock (QSBS) system. The program gives investors a tax break on capital gains of up to US$15 million under certain conditions, and lets them roll over earnings used to back new firms. Canadian founders and investors have called for Ottawa to match the QSBS carve-outs, including in submissions to the recent federal consultation on renewing the national AI strategy. They argue it will help keep startups from moving to Silicon Valley in search of funding and exits. Solomon said something similar on Thursday. “We’ve got to unlock capital and encourage investment so we don’t become the digital farm team again,” he said.