What does 2025 have in store for British Columbia’s innovation economy?
The sector certainly closed out 2024 on a high note, what with Zymeworks Inc.’s (Nasdaq: ZYME) cancer drug recently receiving U.S. Food and Drug Administration approval. Two years after Ireland’s Jazz Pharmaceuticals plc (Nasdaq: JAZZ) licensed zanidatamab for US$375 million, the FDA milestone is now . Looking ahead, Zymeworks stands to receive up to $500 million for subsequent milestones and an additional $862.5 million for commercial achievements.
In many ways, Zymeworks’ journey may forecast 2025 for the wider innovation economy across sa国际传媒
Before the Jazz deal, the Vancouver company was at a crossroads shaped by dynamic market forces, rapid technological advancements, international opportunities, and evolving political and regulatory landscapes — and that’s exactly where the wider sector finds itself with 2025 right around the corner. Here, we examine four key themes that will shape sa国际传媒’s tech landscape in the coming year as companies work to adapt strategically, anticipate change, and capitalize on emerging trends.
Market Conditions: Bootstrapping in a Challenging VC Environment
The global venture capital environment remains constrained as investors and companies continue to shift their focus from growth-at-all-costs to sustainable growth and profitability. With Canadian VC deals down drastically since the middle of 2022 and with just completed on Canadian exchanges over the first three quarters of 2024 — compared to 75 in 2021 — many startups and scaleups are turning to bootstrapping and accessing non-dilutive capital to maintain operations and drive growth. This shift is expected to create opportunities for mergers and acquisitions (M&A) as stronger companies consolidate their positions and others struggle to adapt.
In other words, only the most resilient and resourceful companies will emerge as winners. Startups must demonstrate a clear path to profitability and scalability, a challenge that requires not only operational discipline but also a profound understanding of customer needs and market fundamentals, trends and nuances.
Continued Emergence of AI/ML Capabilities and their Application to sa国际传媒 Businesses
AI and machine learning continue to evolve at a rapid pace, presenting transformative opportunities for sa国际传媒’s tech sector. According to a recent McKinsey Global Survey on AI, 65 percent of respondents said their organizations are routinely using generative AI, nearly twice the figure reported in a survey conducted just 10 months earlier. Expectations for the technology's impact remain high, with 75 percent of respondents anticipating that generative AI will drive “substantial or transformative” changes in their industries in the coming years.
However, downloading and tooling employees with ChatGPT or Perplexity isn’t enough. If you are in finance, health care, forestry, mining and energy, there is massive untapped potential to build custom AI tools to revolutionize your business by optimizing supply chains, improving workflows and enhancing operational efficiency. All of this provides a competitive edge for sa国际传媒 businesses that invest in these technologies ahead of their competition.
The challenge lies in integrating these advanced technologies into industries with deeply entrenched corporate processes. A starting point for most businesses will be looking at the current state of their technology stack and aligning it with their business strategy, so they can finally start to address the pain points in their operations through the power and capability of AI.
sa国际传媒 on the Global Stage: Opportunities Through International Events
Events like Web Summit Vancouver, the 2026 FIFA World Cup, and yes, Taylor Swift’s Eras tour, are turning the global spotlight on sa国际传媒, and in turn drawing investors, industry leaders and talent to the region. For sa国际传媒’s tech companies, this presents a unique opportunity to showcase their innovations, forge global partnerships and expand their reach beyond sa国际传媒.
The Web Summit, in particular, positions Vancouver as a hub for innovation, offering local companies a platform to connect with global players. The key is to capitalize on these opportunities with strategic preparation, effective positioning and the right partnerships.
Power and Politics: Navigating Regulatory and Policy Uncertainty
Political and regulatory uncertainty in both sa国际传媒 and the U.S. will play a significant role in shaping the business environment in 2025. In the U.S., policy shifts under a conservative administration could disrupt trade agreements like the United States-Mexico-sa国际传媒 Agreement (USMCA), impacting Canadian companies’ access to American markets. Domestically, a federal move toward conservatism could lead to changes in innovation funding, government support programs, and regulatory frameworks, potentially reducing access to non-dilutive funding.
For businesses, the keys to navigating this uncertainty involve proactive planning, staying informed about policy developments, and engaging with policymakers to advocate for favourable conditions.
Success Stories to Build On
Zymeworks’ coup is far from the only 2024 example of sa国际传媒 innovators kicking butt and taking names. To cite just a few of many examples:
- Versant Ventures of San Francisco and Swiss pharmaceutical company Novartis AG announced a $150-million investment to establish Borealis Biosciences, a new Vancouver startup focused on developing RNA-based treatments for kidney disease. The majority of Borealis's 25-member founding team previously worked at Chinook Therapeutics, which was founded in Vancouver by Versant and acquired by Novartis last year for $3.5 billion. Borealis is operating out of the same Vancouver office and laboratories previously used by Chinook.
- The federal and sa国际传媒 governments are investing $72.75 million in Aspect Biosystems’ 3D printing of organic tissues. The initiative involves constructing a manufacturing facility to produce materials for clinical trials.
- Copenhagen-based Nordic Capital purchased a majority stake in Vancouver-based Zafin. While the terms of the deal were not disclosed, sources valued Zafin at over US$500 million.
- Nano One Materials, a cleantech company with a patented process for the low-cost, low-GHG production of lithium-ion battery cathode active materials, was awarded $17.8 million by the U.S. Department of Defense to help accelerate the formation of a resilient battery supply chain in the U.S. and sa国际传媒.
- Svante Inc. closed on an investment of US$10 million in 2017 from OGCI Climate Investments and BDC Cleantech Practice, as well as an additional follow-on investment from existing shareholders Husky Energy (now owned by Cenovus Energy Inc.), The Roda Group and Chevron Technology Ventures. This brings total proceeds received under Svante’s Series C Financing to US$26 million.
…and on it goes. Why are these innovators thriving? First and foremost, it is because they have been able to anticipate challenges, adapt quickly and seize emerging opportunities. Now, with the right guidance and support, more of the province’s best and brightest are set to follow their lead in 2025.
Kathleen Reid is an advisor to Playbook. Don Stickney is Playbook’s founder and head of business development at Industrio AI.
