Episode 1 - Michael Wekerle
“The land of misfit toys,” is how Michael Wekerle describes the small group of friends he partnered with to create GMP Securities, a Toronto-based boutique investment firm. Although the cynics had their doubts, within a short period, the firm became a trading powerhouse. Its legacy includes some landmark capital-raising campaigns including Sherritt International and Research in Motion, which GMP took public in 1997. In Canada, Wekerle “Wek” is a bit of a celebrity. In the 80s and 90s, he earned a reputation as the greatest trader on Bay Street with elephant-like memory. Later, he leveraged his Bay Street smarts to foray into a few new ventures. Today, he’s a Dragon investor on the hit CBC show Dragons’ Den. In our inaugural podcast with Randy Cass, Michael speaks candidly about what drives him to succeed, overcome struggles and become a better person. Know the rules The core secret to Wekerle’s success is simple. He takes the time to understand the rules of engagement. “You can’t do anything unless you know the rules.” In 1986, when Sherritt International, a Toronto-based mining company with operations in Cuba, was looking for a partner to help it raise capital, no one wanted to get involved because of the sticky Cuban issue. But Wekerle and his GMP team took a closer look at the U.S. economic embargo that banned companies with ties to Cuba from doing business in the United States. This extra due diligence helped them understand how they could work around this issue. As a result, their alliance with Sherritt International became one of the biggest deals in Canadian history. Make Money Slow “It takes five years to build a business and another five to create a brand,” is something Wekerle often repeats. This perspective helps temper his expectations and prevents him from giving up quickly on new ventures. In 2012, when he founded Difference Capital, a merchant bank that invests in technology, media, and healthcare companies, the first few years were hard. Wekerle believed this was because the Canadian market was not ready to invest in start-ups. And in turn, the company’s stocks were unfairly punished. But never one to believe in overnight success stories, he remains optimistic that over time he and his management have been able to develop better execution plans that will put the company on a steady growth trajectory. Have a heart As Difference Capital struggled, Wekerle was also mourning the loss of his wife. It was during this dark period that he realized some people would only stick around when things were good. This lesson taught him to be a better person in life and business. It reinforced his core values of empathy and reciprocity: “Always treat people the way you want to be treated.” But it also reminded him not to be complacent, “When things are going well, start taking defensive action, put more capital in the bank for your company….” Spot the trends Over the years, Wekerle has worn many different hats― astute trader, successful entrepreneur, maverick television personality. Some of the career pivots were by design, others just happened. The Dragons Den opportunity, he admits, came out of left field. But, this role opened his eyes to the trends in Canada and around the world and fed his proclivity for technology. His recent ventures reflect his vision of the future. He is in the midst of converting El Mocambo, a famous Toronto music club, into a world-class recording studio that produces content for streaming. In recent years, he also acquired some former Blackberry buildings in Waterloo and transformed them into an innovation hub for starter technology companies. Like his role in Dragons Den, Wekerle plans to support and nurture some of these companies. “It’s about making a difference and changing the way we do things .”