Creative Destruction Lab graduates nine companies in its 2020-21 space stream

The Toronto based Creative Destruction Lab Space Stream has graduated nine of 21 companies that participated in its third cohort session. Of note, of the 20 companies originally selected, none were Canadian. A Canadian accelerator with no Canadian companies? When SpaceQ contacted the Creative Destruction Lab (CDL) last fall for comment after learning that none of the 20 companies selected to participate were Canadian, we hit a brick wall. CDL policy is simple, they don't comment on which companies are selected, and they all won't go into details on how companies are selected. Not long after our inquiries we learned from a source that a Canadian company had been added to the cohort. At the time we didn't know who the company was. This was after the first session had already been completed and in-time for the second session in late fall. The same source mused that it seemed quite a coincidence that after our persistent queries with very direct questions that a Canadian company was added. Was it a coincidence? Creative Destruction Lab and transparency This Canada-free cohort is a new and surprising issue for the CDL. Up until now, their space stream has featured a variety of innovative and competitive Canadian ventures. Promising new Canadian space companies like SpaceRyde, Reaction Dynamics and Leap Biosystems are graduates of the accelerator. While they were always accompanied by international counterparts, it seemed clear that CDL understood its mission as being a Canadian accelerator. That may have been a mistake. It raises the question of whether any attempt was made to ensure that Canada was represented as a part of CDL’s Space Stream — or, indeed, of any other CDL stream. When contacted about this story, high-ranking members of the CDL Space Stream refused to comment, referring SpaceQ to the CDL's marketing department. When contacted by SpaceQ, the only statement given by CDL marketing was that they refuse to discuss ventures and cohorts, including whether there were any ventures from Canada. Further attempts to reach out to CDL were met with no response. This opaqueness is consistent with a general lack of transparency at CDL. CDL provides almost no information about their selection process, nor about how the selections are made, nor about who makes the decisions and why. Information about the roles and duties of venture managers, mentors, and venture founders — and even the structure of their sessions — is tightly controlled. While it’s not clear whether CDL requires staff and ventures to sign an NDA, SpaceQ has also learned that CDL management has made it clear that they are not to speak to the press or public on nearly anything that occurs as part of the Creative Destruction Labs’ process. Venture selection is included in that. In fact, attempts to even understand the basic organizational structure of the CDL are difficult at best. Former employees have said they're still not completely clear on how the CDL works, the chains of responsibility, or even where the CDL's funding comes from. Nor is that information available online on the websites of the CDL, the Rotman School of Business, or the University of Toronto. So it's difficult to discern who might have been responsible for this Canada-free cohort. The director? The Space Lead? Were the mentors and venture managers involved? Is the Creative Destruction Lab a public institution? If the CDL were a private organization, one could respond that "they can choose whoever they want, however they want," regarding this hidden selection process and its outcome. The reality is more complex. To begin, CDL is part of the Rotman School of Management, the University of Toronto's graduate business school. When contacted, a representative of Rotman said that the CDL was "an educational and research centre within the Rotman School of Management." It also features prominently in Rotman's investor materials. As Rotman is an important and influential part of the University of Toronto, and as Rotman claims CDL as an educational and research centre, this raises questions about the extent to which the CDL is subject to the transparency requirements of any other public institution. As there seems to be no information available on how CDL is funded, it's impossible to say whether public funds are being used to pay the CDL’s operational costs. If they are, they’re paying for an organization with little to no public oversight or transparency — one that appears to be comfortable with running at least one stream with no Canadian ventures. The information isn't there to decide either way. CDL staff paychecks do come from the University, though. Considering that, along with Rotman laying claim to the CDL, it implies disclosure requirements appropriate to a public institution. CDL gets $25M in from the Strategic Innovation Fund CDL has received federal funding. In 2018, CDL was given a $25 million grant from ISED’s Strategic Innovation Fund from 2018-2022 to develop AI models intended to help them better understand the needs of startups, and to assist those startups in their work. (And to reinforce the CDL-UofT connection, the federal government’s grant disclosure site makes it clear that the money went to the University of Toronto.) A senior official at ISED contacted by SpaceQ made it clear that “The SIF (Strategic Innovation Fund) contribution does not provide funds to the firms working with CDL,” and that “CDL’s AI model will be used to develop a product that can help better predict the success of science-based start-ups”. Another ISED official said, however, that recipients must “submit regular reports to the Minister of Innovation, Science and Industry, annual financial statements, project status updates and reports on all committed project benefits.” This reinforces the idea that the CDL should be accountable to the public as well. It also raises an important question: why would the Government of Canada be spending millions of dollars to develop AI models that will, in at least one case, be exclusively helping the competitors to Canadian startups? Should the Government be ensuring that at least some Canadian companies get the benefit of the insights generated by these AI models? The ISED officials would not directly comment on the subject, and CDL remains opaque. But if we see future no-Canadian cohorts, it’s very likely that we'll also see increased calls for CDL transparency. The 2020-21 graduates The graduates were a mix of European and American companies and yes, the lone Canadian company did graduate. Aiko (Turin, Italy) - AIKO is an AI company developing software to make spacecraft independent from ground operators. They have developed a cloud detection software that reduces costs for Earth observation companies by 40 percent, and are currently developing an advanced telemetry analysis software to extend the life of spacecraft.https://www.aikospace.com/ Connektica (Montreal) - Connektica is developing an automated testing SaaS platform for radiofrequency (RF) components that reduces the time and cost of testing passive components, active devices, and satellite payloads. Satellite manufacturers, constellation projects, and component producers will use Connektica’s software platform to manage their component testing process and create automated reports to ensure components meet space quality standards.https://www.connekti.ca/ Leiden Measurement Technology (Sunnyvale, US) - Leiden Measurement Technology (LMT) is developing small, portable, and autonomous in-situ scientific analysis instruments designed for challenging environments where autonomy is required, such as space. Originally designed for detecting signs of extraterrestrial life, these devices are now being adapted for various scientific applications, such as closed-cycle water quality analysis and monitoring, environmental analysis for pollutants and pathogens, and biomedical and point-of-care diagnostics.https://www.leidentechnology.com/ Orbital EOS (Valencia, Spain) - Orbital EOS is building a software platform that uses satellite imagery and AI to automatically detect oil spills at sea. The venture’s platform can provide marine oil-pollution intelligence in maritime areas where collecting information is technically complex and cost-prohibitive for surveillance aircraft and current satellite-based solutions.https://www.orbitaleos.com/ Oxford Earth Observation (Oxford, UK) - Oxford Earth Observation (OxEO) is a software company that uses satellite imagery, computer vision, and predictive models to provide forward-looking environmental-risk assessments for fixed-capital assets. The venture’s first product provides fund managers with water-risk ratings for fixed assets to help them make more informed investment and management decisions.https://www.oxfordeo.com/ Precious Payload (UAE - Abu Dhabi / US - New York) - Precious Payload is a software company that has developed an online SaaS platform that manages satellite mission planning, technical assessment of satellite launches, and supply chain logistics from mission inception to launch. The venture will help reduce time, costs, and risks associated with launching satellites by connecting customers with core resources ranging from launch services to insurance providers, all in one platform.https://preciouspayload.com/ R3 IoT (Glasgow, Scotland) - R3 IoT is a communications and data analytics company that has developed a smart gateway and cloud platform that connects IoT devices to the cloud using a combination of satellite and cellular networks. The venture provides reliable access to data and analytics capabilities for customers in industries such as agriculture, aquaculture, and energy operating in remote areas without traditional communications infrastructure.https://r3-iot.com/ Starfish Space (Seattle, US) - Starfish Space is developing a space tug that uses autonomous software and electric propulsion to transport satellites and other orbital objects in space. The tug helps satellite operators extend the lives of their satellites by moving them to the correct orbit and out of orbit when the mission is completed, enabling longer missions, increased revenues, decreased replacement costs, and compliance with end-of-life regulations.https://www.starfishspace.com/ Xona Space Systems (San Meteo, US) - Xona Space Systems is developing a constellation of small satellites to provide positioning, navigation, and timing services with high precision and reliability. Once fully deployed, Xona’s encrypted and jam-resistant signal from Low Earth Orbit (LEO) will offer up to 100 times stronger signal power than GPS at more than 10 times better accuracy, enabling modern and autonomous systems anywhere on the planet.https://www.xonaspace.com/ With contributions by Marc Boucher.