Menu
VoltSafe Blog Team – November 21, 2024
Canada’s economy is vulnerable due to its reliance on oil, while the US has achieved gains through tech investments. Shifting focus to tech hardware can diversify Canada’s economy, boost innovation, and ensure global competitiveness. Here’s how everyday Canadians can get involved and have a transformative impact by investing in this sector.
Canada’s economy has historically been heavily dependent on natural resources, particularly oil. While this sector has provided significant revenue, it also subjects the economy to global oil price fluctuations, environmental concerns, and the finite nature of fossil fuels. A recent article by WealthSimple points to how big tech has managed to help the S&P 500 make significant gains in the US market and help their economy break away from the rest of the world. The investment into the tech sector from federal and local sources as well as foreign investment has helped to bolster their economy and dollar. Canada’s market on the other hand trails far behind the US market but is on par with the rest of the world. So can the TSX yield similar results to the S&P 500? Diversification would be the answer.
Canada’s market usually perks up when oil prices go up. However, relying on a single sector is not enough to help us see the returns enjoyed by the US market. High oil prices also affect the transportation of goods and industries and stocks that depend on it. Canada has a vibrant technology scene and innovative startups, but it is lagging in one crucial area: investment in the tech hardware and equipment sector. While software and digital services often grab headlines and attract funding, the hardware segment remains underfunded and underdeveloped. This gap not only limits the growth potential of Canadian tech companies but also hinders the broader economy from fully reaping the benefits of technological advancements.
Tech hardware and equipment are the backbone of many technological innovations. From the devices we use daily, such as our smartphones and laptops, to the advanced machinery driving industrial automation and the burgeoning IoT (Internet of Things) ecosystem, hardware is fundamental. Investing in this sector ensures that Canada remains competitive on the global stage, fostering homegrown innovation and reducing dependency on foreign technology. Investments into this sector help fund research and most importantly, development.
Canadians have a unique role to play in boosting investment in the tech hardware and equipment sector. Here are a few ways to get involved:
Crowdfunding Platforms: Websites like FrontFundr and Kickstarter have democratized investment, allowing individuals to fund innovative hardware projects directly. By supporting Canadian hardware startups, citizens can help bring new technologies to market.
Stock Market Investments: Investing in publicly traded Canadian tech companies or exchange-traded funds (ETFs) that focus on technology hardware can provide the necessary capital for these businesses to grow and innovate.
Government Programs & Grants: Canadians can advocate for increased government support and funding for tech hardware startups. By voting for policies and politicians that prioritize tech innovation, citizens can influence the allocation of public funds towards research and development.
Angel Investing & Venture Capital: For those with more significant financial resources, becoming an angel investor or participating in venture capital funds focused on hardware startups can provide essential seed money and growth capital.
Investing in research and development (R&D) is crucial for driving innovation in the tech hardware and equipment sector. Companies like VoltSafe, specializing in advanced smart and safe electrical connections, can benefit immensely from increased R&D funding for:
Innovation & Product Development: R&D investment allows companies to develop new products and improve existing ones, maintaining a competitive edge in the market. VoltSafe’s deep technology has produced a safe and smart connector for high voltage. These connectors help reduce electrocution deaths, fire hazards and help manage energy usage at the granular level. The company has caught the attention of accessibility experts and industries looking to keep their workers safe like emergency rescue and hospitals and clinics. The marine industry is jumping a bit to install VoltSafe’s shore power system to keep their workers and boaters safe. The company is also getting requests from theatrical production companies.
Economic Growth: Successful tech companies can boost the economy by creating high-paying jobs, generating tax revenue, and fostering ancillary industries.VoltSafe employs hardware engineers, software engineers, logistics and marketing professionals.
Global Competitiveness: With adequate funding, Canadian hardware companies can compete with global giants like Apple, Tesla, Dell, and Intel (all US companies), ensuring that Canada remains a key player in the global tech landscape.
The success of companies like Apple, Tesla, Dell, and Intel in the U.S. provides a clear blueprint for the potential impact of robust investment in tech hardware and equipment:
Job Creation: These companies have created millions of jobs, both directly and indirectly, through their extensive supply chains. Companies like VoltSafe can do the same. We currently have several PO’s for VoltSafe Marine that require construction of the hardware for our pedestal system and adapter. An injection of money for production can help the company generate revenue and income that would in turn help the company continue to develop and grow the business not only in North America but throughout the globe by setting up manufacturing facilities in British Columbia which is lacking in EV manufacturing.
Economic Stimulation: The growth of these tech giants has stimulated the U.S. economy, contributing to GDP growth and technological leadership. With interest coming in around the world for VoltSafe Marine as well as our multipurpose connector, the ability to commercialize our connectors and distribute them around the globe would help boost the economy and strengthen our dollar.
Innovation Hubs: Silicon Valley and other tech hubs in the U.S. have thrived due to a strong focus on R&D, fostering an environment where innovation can flourish.Canadian Hubs do not have the same financial backing to host companies for a long enough period and investment dollars to get to the point of commercialization and market. While Canada has innovation hubs, there are none that can support research and hardware development to take to market the same way as hubs found outside the country.
For Canada to fully realize its potential in the tech sector, there must be a concerted effort to invest in tech hardware and equipment. Everyday Canadians can play a pivotal role by supporting startups, advocating for government funding, and investing in tech companies. By prioritizing research and development, companies like VoltSafe Technology can drive innovation, boost the economy, and ensure that Canada remains competitive on the global stage. The successes of Apple, Tesla, Dell, and Intel in the U.S. serve as a testament to the transformative power of investing in tech hardware and equipment.
If you would like to invest in VoltSafe, send us a note to invest@voltsafe.com. For a limited time, the easiest way to invest is by participating in our current FrontFundr campaign. Right now, you can invest a nominal amount starting from $750 or upwards, and it’s easier than ever as you can now make your contribution using a valid credit card. If you live in British Columbia, you can apply for the BC Venture tax credit with a minimum $5,000 investment. The credit allows you to claim 30% back on your taxes. A smart way to invest in a local company if you live in BC. You can also use the investment as a means to contribute to your TFSA/ RRSP or LIRA for $2,500, so you get a 30% refund on your taxes and can protect any gains on the investment in one of those plans. A great way to invest in local businesses focused on positive change and investing in yourself at the same time. Canadians supporting Canadians while driving growth in our own tech hardware market.
About VoltSafe Inc.
VoltSafe Inc. is changing the way people connect to power. Headquartered in Vancouver, BC, the Canadian tech startup has reinvented the electrical plug by eliminating prongs, adding magnets and an “electrical fingerprint”. Using patented technology, VoltSafe has created the world’s safest, simplest, and smartest plug design since electricity came into homes more than 140 years ago. The company’s product pipeline includes magnetic plug replacement solutions for household, commercial, industrial, marine, electric and autonomous vehicles, emergency services, data centres and more.