Canada's supercharged investment opportunities

We found out where the $950 million ‘supercluster’ money from the Canadian government is going – and one way you also can invest today

Andrew Willis 29 August, 2019 | 1:42AM
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Andrew Willis: Canada’s biggest investor – the federal government – has pumped nearly a billion dollars into “Superclusters” to encourage talent, innovation and competitive strength five industries. Oceans, Supply Chains, Manufacturing, Protein, and Digital Technology.

Announced in 2017, the initiative was to invest $950 million in companies that operate in these industries.

So where did the money go? To find out, we spoke to the Minister of Innovation, Science and Economic Development, who told us that the Ocean Protein Industry and Digital Technology superclusters are each set to get up to $153 million, while both AI-Powered Supply Chains and Manufacturing will each get up to $230 million.

By the end of this month, all five superclusters will have announced their first projects, with 14 in total expected. These projects are expected to be receiving nearly $30 million in federal funds, along with $40 million in private funds – just to start.

Now, with nearly a billion dollars in funding – this is clearly a drop in the bucket, but funding will be provided in phases. Each of the superclusters also now have their own websites up with more hints on where the next rounds of investment will go, clues to investable opportunities, and many familiar names - all of which have been vetted.

Let’s talk about one. Kraken Robotics (2KQ) is an underwater vehicle and imaging provider. This four-star rated company has several existing defense and environment contracts and is the first recipient of the Ocean supercluster funding. With the first $5.9 million going towards the development of an underwater data and analysis as-a-service business, it is set to unlock an ultra-high definition view of our ocean floor – which covers 71% of our planet.

For Morningstar, I’m Andrew Willis.  

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Kraken Robotics Inc0.60 EUR-2.91

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar Canada. He previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @Andrew_M_Willis.

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