Accelerator/Incubator

Building Accessible Ecosystems: Neha Bahl, General Partner at Renew VC, Shares her Vision for Toronto's Startup Scene

Building Value In Innovation Ecosystems Conversation Series OneValley


In the premiere episode of OneValley’s Building Value in Innovation Ecosystems podcast, host Sabah Baxamoosa sits down with Neha Bahl, partner at Renew VC and former leader of the Toronto Business Development Center (TBDC), to discuss her journey in the Canadian startup ecosystem, the evolving landscape of innovation support, and strategies for empowering entrepreneurs on a global scale.

 

As the episode unfolds, listeners are treated to Bahl’s wealth of insights and anecdotes that illuminate the challenges and opportunities faced by entrepreneurs and ecosystem builders alike. 

 

Building Value in Innovation Ecosystems: Insights from Neha Bahl on Empowering Startups

In today’s fast-evolving landscape of startups and open innovation ecosystems, support for entrepreneurs is more crucial than ever. Neha Bahl, General Partner at Renew VC, brings a unique perspective to this conversation, shaped by her vast experience in both Indian and Canadian startup ecosystems. In a recent interview, Bahl shared her journey and insights, focusing on the shift from merely supporting entrepreneurs to empowering them and how both the public and private sectors can collaborate to build thriving entrepreneurial resource environments.

From Operator to Empowerer

Before moving to Canada in 2018, Bahl co-founded an accelerator and pre-seed fund in India, backed by Accel Partners. Upon relocating to Canada, she began running Toronto’s oldest business incubator through the federal Startup Visa Program. This program attracts international entrepreneurs, positioning Canada as a global launchpad for startups.

Reflecting on her transition from the support side of the startup ecosystem to the empowering side through venture capital, Bahl observed, “The support side of the system pushed me to the empowering side... I saw flaws that could only be fixed with empowerment, which means fueling it with more money.” Her experience underscores the importance of combining financial backing with mentorship and advisory services to truly empower founders.

Challenges in Public and Private Sector Collaboration

Having worked extensively with both public sector programs, such as the Startup Visa, and the private sector, Bahl offers a unique view of the challenges faced by founders. While public programs are well-intentioned, they often miss the mark when it comes to meeting the real needs of entrepreneurs. “The challenge comes when these programs become restrictive… without real feedback from the startup founder, policies are made from 3,000 feet above.”

Bahl cited Canada’s recent changes to the Startup Visa Program, which included offering open work permits to entrepreneurs, as an example of a well-meaning but potentially misguided policy. “If it’s a business program and people are coming for their own business, why give them open work permits? It can be misused for immigration.”

Despite these challenges, Bahl remains hopeful about the potential for public and private sectors to collaborate effectively. She stresses the importance of creating feedback loops that include successful startup voices to ensure that policies remain relevant and impactful. Private organizations, and ecosystem builders in contrast, can disrupt the status quo and provide more direct, flexible support to startups.

Shifting Venture Capital and the Importance of Early-Stage Support

In recent years, the venture capital landscape has experienced a "course correction" with focusing on merit-based investment, moving away from inflated valuations and unchecked funding. Bahl welcomes this shift, arguing that it refocuses on identifying real potential, particularly in early-stage startups. “Why should a serial entrepreneur get money on face value, while early-stage founders struggle to raise? It’s about finding gems and doing the job of a VC—identifying potential where others don’t see it yet.”

Her advocacy for early-stage investing highlights her belief in nurturing startups that show real potential, rather than chasing hype. She encourages investors to take a capital-efficient approach, ensuring that venture capital firms and their funding go to those startups that truly need it.

Toronto as a Global Innovation Hub

Since moving to Toronto, Bahl has seen the city emerge as a thriving hub for innovation strategy. She attributes this to the city’s ability to pivot during the COVID-19 pandemic, which forced many businesses to adapt and rethink their models. “COVID gave us a lot of lessons... Pivoting wasn’t a bad idea; it was inevitable, and people embraced it.”

Toronto’s growth as a startup hub and local startup ecosystem has also been fueled by a proliferation of incubators and accelerators that support early-stage founders and showcase their success stories. However, Bahl warns against redundancy, advocating for more collaboration across ecosystems. “The first rule of successful innovation is: Don’t reinvent the wheel. Why build one thing at a time when we can build together?”

Building Global Market Access Programs

One of Bahl’s key initiatives during her time with the Startup Visa Program was promoting Canada as a global launchpad for startups. However, she noted that many entrepreneurs were more interested in using Canada as a stepping stone to access the U.S. market. “There’s no red carpet rolled out for the U.S. market... But if we can give access to that market, we’ve won.”

Bahl envisions Toronto as a place where investors from around the world come to find high-potential startups, networking opportunities and funding organizations. “I don’t want to make Toronto another Silicon Valley. I wish it never becomes Silicon Valley. I want Toronto to be an accessible entrepreneurial ecosystem where investors from the U.S. look up to us.”

The Future of Innovation Ecosystems: Global Collaboration

Bahl strongly believes in the power of new ideas in collaboration between the organization and innovation districts. She sees immense potential for entrepreneurship support organizations to share resources and market access, creating a more integrated global startup community. “It’s give and take... If you can give access to the U.S. market, why not give U.S. entrepreneurs access to the biggest testbed in the world—India?”

Ultimately, Bahl envisions a borderless ecosystem where entrepreneur's ideas, regardless of their origin, can access the startup resources they need to build impactful, world-changing businesses.

Breaking Down Barriers: A Level Playing Field for All Entrepreneurs

Bahl highlights the importance of the innovation process and inclusion in today’s startup world, where value should be recognized regardless of one’s background. In particular, the thriving innovation ecosystem is moving towards recognizing merit over bias. “That’s why the disruption at one point was removing the human out of it. Because we have our own biases.”

However, Bahl cautions that equity doesn’t mean treating all business ecosystems in the same way. Using the analogy of a sprint, she explains, “Some founders, due to their backgrounds or starting points, need extra support—not as special treatment, but to ensure they can compete on equal footing.” This nuanced understanding is crucial to building an inclusive successful innovation ecosystem that levels the playing field for all institutions.

Embracing Failure as a Catalyst for Growth

A key theme in Bahl’s philosophy is the value of failure. She believes that failure is an integral part of innovation management, reflecting on her upbringing where failure was not an option. In contrast, in the startup world, failure means progress and experimentation. “I make a list of 10 things I want to fail at each year,” Bahl says, demonstrating her proactive approach to building resilience.

For Bahl, it’s crucial for both entrepreneurs and their support systems to embrace failure. Support systems should focus on fostering progress rather than perfection, enabling founders to take risks and grow from their mistakes.

How Support Organizations Can Help Founders Embrace Failure

Support organizations play a critical role in helping founders become comfortable with failure. Bahl advises that these organizations should focus on progress and collaboration rather than unrealistic standards of success. “Support systems should not compete... they should collaborate in the startup ecosystem.” By working together, support organizations can build more resilient and successful communities.

The Intersection of Societal Good and Profit: The Future of Innovation Ecosystems

Neha Bahl is excited about the growing convergence of societal good and profit in today’s innovation ecosystems. She believes that entrepreneurs no longer need to choose between social impact and monetary value. “You don’t have to make money and not do good. You could do both at the same time.”

This balance between profit and social impact is particularly significant for Canada’s startup with innovative ideas, which Bahl believes is poised to thrive as consumers prioritize ethical practices and societal benefits.

Final Thoughts: Collaboration, Inclusivity, and Progress

Bahl concludes with advice for building innovation projects: collaborate, don’t compete. Inclusivity, collaboration, and embracing failure are the key ingredients for a thriving startup ecosystem. By fostering these values, entrepreneurs and support organizations can drive meaningful progress and create a more inclusive, innovative community.

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