Montreal Ecosystem | Dec 18, 2023
Image: Unsplash Jametlene/ReskpThe OSMO Foundation, responsible for Notman House, is grappling with $323,000 unpaid mortgage fees, owed to the Business Development Bank of Canada (BDC) and Investissement Québec (IQ)
As first reported by Le Devoire, and then Betakit, the Notman House, a cornerstone of Montreal’s startup ecosystem, housed in a historic 187-year-old building, faces a dire situation and potential sale.
Since its inception in 2011 by Real Ventures and the OSMO Foundation, the only hub of its kind in Montreal, Notman House has been more than just a building; it has been a vibrant hub for tech startups, offering co-working and event spaces, and fostering collaboration and innovation.
See: Canada’s Ranks 15th on WIPO 2023 Innovation Index
Despite initial support from federal, provincial, and municipal governments, along with private donors, the foundation has struggled with financial burden. The situation worsened with the onset of the pandemic and the accompanying economic pressures, leading to a loss of major sponsors and increased financial strain. The future of Notman House now hangs in the balance.
Philippe Telio, Startupfest founder and OSMO board member:
“It’s not like the financial hill is so large that it’s impossible to imagine that somebody could come in and step in and save this. So in that sense, yes, it’s very possible that an individual or a group of individuals can come together and figure out how to solve the financial issues.”
See: Fintech Cadence receives $400,000 government grant to help Québec Fintechs build and scale
The situation is made more complex by the emergence of a new initiative, Ax-C, set to open in December 2024 with substantial $48 million government backing. Ax-C aims to fulfill a similar role to Notman House but with institutional ties to the École de technologie supérieure (ÉTS), which Notman lacks.
Outlook
The potential sale of Notman House raises concerns about the continuity and preservation of Montreal’s tech ecosystem. Notman has been a symbol of organic, community-driven entrepreneurship, uniquely positioned outside the downtown financial district, making it more accessible and integral to the city’s startup culture.
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- Source: https://ncfacanada.org/montreals-notman-house-osmo-foundation-in-crisis/
