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Finance Montréal creates the Station FinTech Montréal

by

Andrea Lubeck

18 June 2018 13:30

Photo : Freepik

Finance Montréal has launched a centre of development of young companies in the technology sector, the financial (fintech), named the Station FinTech Montreal, during a press conference held this morning, and to which the Journal of insurance has assisted. The Station FinTech Montréal will welcome between 20 and 30 startups from the fall of 2019.

Directed by Matthew Cardinal, vice-president, development, FinTech and corporate affairs to Finance Montréal, the Station FinTech Montréal will offer lectures, training sessions and targeted meetings with various stakeholders in the sector to startups members.

Startups start-up referred to

The Station FinTech Montreal will accept applications as early as this summer, and is already in talks with some startups to integrate the program. There are accepted companies of less than seven years of existence, with an income of less than $ 5 million ($M) , less than 60 employees and at the stage of funding between the startup and the funding of series B. the due diligence of the companies will be made before its acceptance.

“The products of the startups will have to be validated by the market, they will need to be able to serve the financial institutions and the market with a certain pull, a certain validation of their technology solution. They must also be able to pay rent, ” said Mr. Cardinal.

The Station will occupy offices with an area of 25,000 square feet, for the Place Ville-Marie from September 2019. Meanwhile, she will be at the Space CDPQ from the months of August 2018 and will begin the animation of the community fintech with lectures, training sessions, meetings with investors and regulators, especially.

Public funding of$ 10.5 Million

The government of Québec has granted a total funding of$ 10.5 Million over a period of five years for the pole fintech. Finance Montréal expects that its member financial institutions and startups that are part of the program, and who are the tenants of the property, contribute the same amount over five years, approximately$ 2 Million per year.

“We already have commitments from our members for the income of$ 2 Million per year. We continue to develop partnerships, including with the commitments related to our Forum FinTech, which generates nearly$ 1 Million of income private, in addition to the contributions of members of Finance Montréal. We are therefore very confident that we will reach our target of$ 2 Million and even more, ” said Louis Lévesque, president of Finance Montréal.

“A strong financial sector, and dynamic is essential to Québec’s economic development. I am convinced that by working together, we can create a business environment modern and competitive which is conducive to the growth of businesses and in which the consumers will also have greater confidence. In this vein, the adoption last week of the law 141, which is now the reality, is an important step towards the achievement of these objectives “, pointed out Carlos J. Leitão, Quebec minister of Finance, who was accompanied by Richard Boivin, assistant deputy minister.

Not an incubator

Finance Montréal are approximately 75 startups fintech in Quebec and 400 in Canada. Foreign companies may participate in the program if they wish to develop their activities in Canada. “Of course, we are going to have a bias favorable to accommodate the start-ups here, but we will be connected on the global ecosystem of fintech,” said Mr. Cardinal.

The leader of the Resort is expected that there is a certain rolling of the startups that are part of the program. Mr. Cardinal has assessed that a company could stay between three and five years, depending on the stage at which it is located when it makes its entrance to the Station.

Finance Montreal, however, has held in particular that the Station is not an incubator and will not invest in share capital in the participating companies. “We do not act as investors, we want to connect businesses with potential investors. There are already a lot of programs that have this role. We may have to refer the business to those programs, but we do not claim to want to duplicate what is already being done, ” added Mr. Cardinal. Finance Montréal is the organization that will ensure the accountability to the government and other bodies.

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