Element AI closes financing, securing $200-million backed by the Caisse, Quebec and McKinsey

www.theglobeandmail.com

While Element AI sounds like a smashing success, there is more beneath the cover. IMO giving startups too much money from the start never allows founders to build a culture of ingenuity and scrappiness - as per quote in Globe and Mail - "The funding comes after several setbacks for Element in getting products to market, after a torrid hiring spree that saw it grow its ranks to more than 500 people before proving there was substantial commercial interest in its offerings. The company generated less than US$10-million in revenue last year, primarily from consulting contracts. By contrast, Ottawa e-commerce software provider Shopify Inc. only reached the 500-employee mark the year it hit US$100-million in revenue."

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