The General Manager, Economic Development and Culture recommends that: 1. The Economic Development Committee receive this report for information.

Transcription

1 ED26.8 REPORT FOR ACTION New York Mission 2017 Date: January 4, 2018 To: Economic Development Committee From: General Manager, Economic Development and Culture Wards: All SUMMARY On November 14 and 15, 2017 the City of Toronto, led by Mayor Tory, in conjunction with World Trade Centre Toronto (WTC-T) and Toronto Global participated in a mission to New York City to showcase Toronto s competitiveness and business talent and to augment Toronto Global's lead generation efforts in market with top management in the financial services, fintech and venture-backed startup and large financial institutions. The mission s program was structured to include a blend of media, private meetings with senior executives of large financial services organizations and wider-audience engagements with the tech and innovation community through Grand Central Tech, with whom MaRS Discovery District announced the launch of a partnership on November 1, This report provides a high-level summary of the mission to New York, with highlights of some of the key activities and details of the follow-up conducted following the mission. RECOMMENDATIONS The General Manager, Economic Development and Culture recommends that: 1. The Economic Development Committee receive this report for information. FINANCIAL IMPACT There are no financial implications resulting from this report. Net costs of the trade mission to the City of $8, were included in EDC's 2017 Approved Operating Budget, under Business Services' International Alliances activity. Future investments of major financial institutions visited will benefit the City and provide growth opportunities for Toronto's financial services, fintech industry, and venturebacked startups and large financial institutions. NEW YORK MISSION 2017 Page 1 of 9

2 The Acting Chief Financial Officer has reviewed this report and agrees with the financial impact information. DECISION HISTORY The Economic Development Strategy, Collaborating for Competitiveness, adopted by City Council in February 2013 presents specific recommendations and actions to advance four key strategies to accelerate economic growth and job creation in Toronto. A key pillar to the strategy is to Boost Business Growth" which focuses on leveraging the City's relationship with our international alliance partner and friendship cities as well as with bi-lateral business associations to establish cross border business oriented partnerships, develop new markets and trade alliances, and act as a catalyst for new investment, as well as business, educational and cultural exchanges. The international trade strategy report adopted by City Council in February 2017 directs the General Manager, Economic Development and Culture to report to Economic Development Committee on the results of all outbound trade missions within three months of the mission and to report to Economic Development Committee annually on all international economic and cultural development activities. The City of Toronto International Trade Funding Report (January 6, 2017) highlighted WTC-T as a key supporting partner in the delivery of trade promotion activities. On February 15, 2017, Toronto City Council authorized the signing of an agreement with the WTC-T for one year to partner with the City to provide training and trade development activities with Toronto-based SME firms as well as assisting with outbound and inbound trade missions. An agreement was signed between WTC-T and City of Toronto on July 24, COMMENTS The US continues to be a key market for Toronto in terms of investment and trade. In 2016 Ontario exported approximately $11.6 billion of goods to New York State and imported approximately $14.3 billion. New York City has more Fortune 500 Companies than anywhere else in the world with a prominent financial services sector providing a strong base for potential investment into Toronto. New York City is the fastest-growing tech hub in the United States. NYC's innovation ecosystem has been ranked Number 2 overall by Startup Genome for 2017, after Silicon Valley (Toronto ranked 16th). Both the DMZ (Ryerson University) and Centre for Social Innovation have locations in NYC. NEW YORK MISSION 2017 Page 2 of 9

3 Through the City of Toronto's International Alliance Program (IAP), Toronto fosters formal and informal relationships with international cities to strengthen economic, cultural, and multicultural links and to share best practices. Outbound missions are an essential and integral part of the program. The goal of outbound missions is to further economic development, cultural, tourism, cross-cultural activities, municipal learning, trade and export development. Mission priorities include relationship building with government, community, and business partners. The core of any outbound mission typically includes courtesy calls with representatives of the local governments, one-on-one business meetings and broader audience marketing functions as well as institutional meetings and speaking engagements for the Mayor and/or other visiting dignitaries. EDC staff also work very collaboratively with other orders of government in-market such as the Global Affairs Canada officials and Ontario officials in International Trade and Economic Development to facilitate local market engagements. Mission Objectives The specific objectives of the New York Mission were to: Visit Sidewalk Labs and learn more about the specific innovations they have made related to urban technology, as they partner with Waterfront Toronto on the Quayside development. Engage with top leadership and solicit investment in a large person blockchain / AI centre of excellence from a large financial service firm which announced the deployment of a blockchain network with correspondent banking partners. Engage with top leadership at a large financial service firm to gather views on how Toronto is perceived from a business competitiveness standpoint, including the review of a case study on the firm s site selection methodology. Raise the profile of and create additional media opportunities related to the November 1, 2017 announcement of a Grand Central Tech MaRS Discovery District partnership (MaRS@GCT) that creates reciprocal benefits for founder communities in both cities. Advance the talent attraction narrative for Toronto with a focus on addressing New York s start up founder community in the fintech and AI communities during a reception for over 100 scale-up stage tech firm founders and executives. Generate leads and cement relationships with site selectors in the New York area Engage with leaders in the New York City and New Jersey business communities to discuss Toronto Global, its mission and market the Toronto Region as an attractive destination for investment. Hear from site selection experts regarding the broad economic and social components of what makes regions, like Toronto, attractive for foreign direct investment (FDI) projects. Promote market development and collaboration opportunities between Toronto and New York-based companies. NEW YORK MISSION 2017 Page 3 of 9

4 Business/Delegate Recruitment Marketing Toronto's investment potential is best accomplished through collaborative partnerships with public and private sector stakeholders. To develop the delegation for the New York Mission, a range of partners were engaged, including: MaRS Discovery District and New York partner Grand Central Tech; major financial services firms in New York; the Toronto Region Board of Trade, the World Trade Centre-Toronto; Toronto Global; Toronto Financial Services Alliance and other government representatives from the Toronto Region. A list of the Toronto delegates is provided in Attachment A. Mission Highlights Sidewalk Labs o Presentations by Sidewalk Labs provided representatives of the delegation with the opportunity to learn more about the work of Sidewalk Labs, an Alphabet company that was recently named as the successful respondent to a Waterfront Toronto RFP to be the innovation and funding partner. Discussions focused on specific pilot project opportunities for Quayside with the potential to generate immediate benefits for residents of the City of Toronto. Major Financial Services Company Meeting with top technology team leadership provided an opportunity to learn more about the company's business footprint and how this connects to Toronto. Discussions focused around fintech / AI talent specialities in Toronto and how this relates to their business. Specifically, discussions included calls to consider Toronto for the expansion of the company's centre of excellence strategy, which includes the roll out of machine learning and robotic process and automatic research centres. Discussion also included feedback on how to best position Toronto as a potential site for the company's 10 planned international strategic operations hubs. Major Financial Services Company Meeting with the Chief Operating Office and Global Head provided opportunities to solicit consideration of Toronto acquisition and investment opportunities in the fintech space. Discussions focused on gathering insights on the company's global corporate footprint and views on Toronto; building an understanding of the company's site selection methodology; and, what services and access the City can provide to any of their operations or clients interested in establishing an operation in Toronto or trading with Toronto based companies. Specifically, discussions included an invitation to the leadership team to visit Toronto to explore opportunities to leverage the city s talent community to support the company's growing technology business. NEW YORK MISSION 2017 Page 4 of 9

5 A large event at New York s premier technology accelerator, Grand Central Tech, brought together an audience of over 100 members of the local technology and innovation communities. Mayor John Tory s address called on members of the community to consider investing and living in Toronto and doing more business with Toronto partners. The Mayor s remarks were followed by presentations and panels by technology entrepreneurs from Toronto and New York speaking about the strength of an emerging East Coast alliance that targets syndicated deal flow and venture capital between New York and Toronto. The program helped to promote and enhance the profile of a newly launched MaRS Discovery District presence at Grand Central Tech and the roll out of reciprocal services available to New York and Toronto companies. Tech Founder Reception and Dinner A reception at Grand Central Tech for a community of Toronto s leading post- Series A founders and over 100 members of the local technology and innovation community provided and opportunity for Toronto businesses to connect with their New York counter parts. Addresses by Mayor Tory and short pitch presentations by more than 10 founders communicated Toronto s value proposition as a hub for high-growth businesses in the technology and innovation space. Flatiron Health Meeting with Flatiron Health a company focused on transforming the way cancer is understood and treated through accelerating research and technology. Foursquare A technology company that uses location intelligence to build meaningful consumer experiences and business solutions through two apps, Foursquare City Guide and Foursquare Swarm. Discussions were held on exploring business opportunities in Toronto. Venture Capital Roundtable Meeting with various Venture Capitalists discussing potential investment opportunities and sharing their perspectives on improving access to Toronto's vibrant start-up ecosystem. Canadian Consul General in New York Roundtable discussion with the Canadian Consul General. Briefing on local investment and trade opportunities. Meeting with City Staff and NYCEDC (New York City Economic Development Corporation) Sharing of best practices on international relationships with dialogue of a potential city to city partnership agreement. Toronto Global Launch Event NEW YORK MISSION 2017 Page 5 of 9

6 An official Toronto Global launch was hosted to bring together New York City and New Jersey business leaders with representatives of the Toronto Region. Promoting the Toronto Region as an attractive destination for investment and to introduce Toronto Global via US and international media outlets. Media Engagements During the mission, Mayor Tory participated in several media interviews which included: CNBC Squawk Box, Slate, Bloomberg, NPR Marketplace Tech and Cheddar (a financial services network at NYSE). Mission Outcomes As a result of the mission, there are a number of initiatives being undertaken, including: Major Financial Service Company Follow up with company inviting its top global technology leadership to visit Toronto in 2018 to enhance the firm s understanding of Toronto s value proposition as a site for one of its 10 planned strategic hubs internationally. Continued work led by the Mayor s Office and Toronto Financial Services Alliance to refine Toronto s talent narrative from a fintech and financial services perspective. Major Financial Service Company Follow up with company inviting senior leadership from the Chief Operating Officer s team to visit Toronto in 2018 to connect with key local stakeholders including the Vector Institute, OneEleven, the University of Toronto and others. Continued work led by the Mayor s Office and Toronto Financial Services Alliance to further refine Toronto s talent narrative from a fintech and financial services perspective. MaRS@GCT Continued work by MaRS Discovery District, Grand Central Tech and Toronto and New York s tech ecosystem stakeholders working on the development of a strategic east coast alliance that will attract talent and syndicate VC investment. Mission Budget The mission had a total cost of $8, to the City. This included expenses as follows: Travel $1, Accommodation 5, Ground transportation Per Diem Other NEW YORK MISSION 2017 Page 6 of 9

7 Conclusion Overall, the mission was successful with many positive outcomes. As a result of the mission, there are a number of initiatives underway to better connect Toronto and New York across the technology and innovation, fintech and financial services and smart cities domains. Initiatives focus on communicating and strengthening Toronto s position as a global centre for technology talent, attracting strategic AI/machine learning investments and advancing smart cities pilot projects. It will take some time for investment opportunities to be realized fully but the groundwork has been established for future investment and trade opportunities to be created as a result of the contacts made on the mission. It is important to note that follow up is necessary and crucial to the success of a business mission. The City of Toronto will work closely with its partners from the mission to realize the opportunities and initiatives identified in this report. CONTACT George Spezza Director, Business Growth Services George.spezza@toronto.ca SIGNATURE Mike Williams General Manager Economic Development and Culture ATTACHMENTS Attachment A: List of Delegates NEW YORK MISSION 2017 Page 7 of 9

8 ATTACHMENT A: List of Delegates City of Toronto Delegates Mayor John Tory, City of Toronto Siri Agrell, Director Strategic Initiatives, Office of the Mayor Keerthana Kamalavasan, Senior Manager, Communications & Tour, Office of the Mayor George Spezza, Director Business Growth Services, City of Toronto The overall delegation included: Region Mayors and Chairs: Bonnie Crombie, Mayor of Mississauga Linda Jeffrey, Mayor of Brampton Wayne Emmerson, Chairman, York Region Roger Anderson, Chairman, Durham Region Toronto Global Mark Cohon, Chair, Toronto Global Janet Ecker, Vice Chair, Toronto Global Toby Lennox, President and CEO, Toronto Global Daniel Silverman, EVP, Investment Attraction Daniel Hengeveld, Director, Investment Attraction Julia Sakas, Director, Marketing & Communications, Toronto Global Matt Switzer, Senior Advisor, Toronto Global Graeme Cooke, Senior Advisor, Toronto Global Ellen Mitchell, EA to the President & CEO, Governance Secretary Province of Ontario Alan O Dette, Chief Investment Officer, Province of Ontario Jens-Michael Schaal, Consul & Senior Economic Officer, Province of Ontario Toronto Financial Services Alliance Jennifer Reynolds, President and CEO, Toronto Financial Services Alliance Toronto Region Board of Trade Jan De Silva, President and CEO, Toronto Region Board of Trade Joshua Brown, Project Manager, Toronto Region Board of Trade World Trade Centre-Toronto NEW YORK MISSION 2017 Page 8 of 9

9 Consulate General of Canada in New York Phyllis Yaffe, Consul General of Canada in New York Nathalie Niedoba, Consul Rafael Perez, Trade Commissioner City of Mississauga Rob Trewartha, Chief of Staff, City of Mississauga York Region Lina Bigioni, Chief of Staff, York Region Robert Unterman, Manager, Investment & Marketing, York Region City of Brampton Martin Bohl, Director, Strategic Initiatives, City of Brampton Durham Region Sandra Austin, Policy and Research Advisor, Durham Region MaRs Discovery District Jeff Hindle, Managing Director Fintech and Commerce, MaRS Discovery District NEW YORK MISSION 2017 Page 9 of 9