“We didn’t even consider building a lab in Toronto.”

Karim Abdur-Rashid travels to Toronto twice a week. Creating your own company was never on the agenda there.

“We haven't even considered building a lab in Toronto. It's too expensive for the space we need,” he said.

“Here you have the opportunity to make your mark.”

Karim Abdur-Rashid, Kare Chemical

Together with his father, Abdur-Rashid founded Kare Chemical Technologies in Mississauga.

There, he runs a 6,000-square-foot laboratory that develops drugs based on natural compounds found in citrus peels to create new treatments for pain, obesity and brain-related disorders.

“Our first lab was located right next to the airport, so investors and flying customers could have access to nearby hotels and restaurants,” he said.

Abdur-Rashid discussed this choice at the Scaling in Saug panel Startup Tour of Canada Oct. 21, where the founders spoke about the benefits of building outside of Toronto.

The event was attended by 1,400 people in person and virtually, making it the most attended tour stop in the history of the Startup Canada Tour series.

Speakers included Clearco co-founder and Dragons' Den investor Michelle Romanow, Audiobooks.com co-founder Sanjay Singhal and Cheekbone Beauty CEO Jenn Harper.

But the Mississauga-focused discussion highlighted different benefits for founders looking beyond Canada's largest city as Toronto continues to experience high costs and severe congestion.

Nagatawa Nanawas, co-founder and CEO HDAX Therapeuticsbiotech company developing targeted treatments for neurological and cardiometabolic diseases takes advantage of University of Toronto SpinUp Lab.

SpinUp provides collaborative lab space, equipment and infrastructure at subsidized rates at the New Science Building at the University of Toronto in Mississauga.

“SpinUp’s cost is a fraction of other options in Toronto, so we’ve been able to keep our overhead down,” Navar said. “And it's not just the cost. There are probably two dozen companies in the lab now. We work together in this space, and it creates such an important connection. They also bring in community partners to train people on resources like IPON, Mitacs and SR&ED.”

Like Abdur-Rashid, Nawar regularly travels between Toronto and Mississauga and says the trade-off is worth it.

“For a fraction of the cost, we can have access to affordable lab space and good specialists, and make short trips downtown if we need to,” she said.

For Nissrin Chams, opening her cybersecurity company Stratejm in Mississauga 15 years ago was an intentional move.

“Mississauga's economy is very diverse. It has retail, pharmaceuticals and interesting universities and colleges that support great talent,” she said. “This city is the sweet spot between a big city like Toronto, with all the famous headquarters, and a smaller city like London. You won't have too much traffic, but you'll get the business appetite.”

Cham loans IDEA Mississauga powered by Invest Mississauga for helping put Stratejm on the map early on. In 2019, IDEA Mississauga and the Ontario Ministry of Economic Development, Job Creation and Trade (MEDJCT) hosted an open house for Collision Conference participants, inviting entrepreneurs, investors and trade commissioners from around the world to visit local businesses, including Stratejm.

“We invited participants from Collision to visit two of the leading technology companies in Mississauga and ended with a tour of U of T Mississauga,” said Donna Heslin, manager of small business, entrepreneurship and innovation at IDEA Mississauga. “It was a mixture of people who didn’t know where Mississauga was or what we were doing.”

Chams said the event gave Stratejm legitimacy and exposure, and she still receives business opportunities from global companies thanks to the connections she made during that visit. Following Stratheim acquisition 2024 at Bell Canada, she remained as assistant vice president of business development at Bell Cyber.

All three founders agreed that there was still work to be done. They would like to see Mississauga develop a stronger ecosystem of investors willing to take risks on early-stage companies, as well as a dedicated center of excellence for developing talent from the region's post-secondary institutions.

With organizations like SpinUp not opening until 2023, Mississauga's startup ecosystem is still young, which Abdur-Rashid says is part of its appeal.

“You have the opportunity to make your mark here,” he said.

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Mississauga has everything you need to support the growth of entrepreneurs. Find out more about IDEA Development Programwhich helps innovative and inclusive companies grow and overcome barriers. Applications are accepted until November 30.