Investing in emerging technologies can yield high returns, but it often comes with elevated risk. For Canadian investors looking to minimize exposure while still accessing the innovation economy, a cautious and diversified approach is essential.

Start by allocating only a portion of your investment portfolio to high-risk, high-reward sectors such as AI, biotech, cleantech, or blockchain. This ensures that potential losses do not destabilize your overall financial position.

Use managed funds or ETFs focused on innovation, which provide exposure to multiple companies while spreading risk. Canadian funds increasingly include tech firms from Toronto, Vancouver, and Montreal, as well as global leaders.

Another low-risk approach is through corporate bonds or convertible notes offered by later-stage startups. These can offer more predictable returns while still giving upside potential if the company succeeds.

Consider investing through government-backed innovation platforms or venture capital firms with a strong track record. These firms conduct due diligence, often co-invest with institutional capital, and provide hands-on support to startups.

Finally, stay informed. Follow market trends, attend tech expos, and subscribe to startup databases and investor reports. Risk is reduced through knowledge and careful strategy.