Why Canadian Tech Entrepreneurs Should Be Optimistic About the Road Ahead

Canadian tech entrepreneurs are preparing themselves for challenging times in the near future as the country recovers from the coronavirus-induced financial crisis.

Although the tech industry was able to stave off problems during the first few months of the pandemic, entrepreneurs are about to navigate some tough times going ahead. This includes having to grapple with a recession, a shortage of capital, and rapid technological advances in several different fields.

However, the latest research shows that there are still many reasons for Canadian entrepreneurs to have a positive outlook about the road ahead. The VC ecosystem and vibrant startup culture in the country have undergone massive improvements in the last few years, which means that there are many avenues for them to bounce back from the crisis.

  • Startups are increasingly taking advantage of top-notch university research

Canada is leading the world when it comes to the commercialization of university research. Thanks to the top-class universities in the country with incredible facilities and business incubators, Canada has been able to overtake the US in converting university research into viable startups, a position it has held since 2016. The research programs in different Canadian universities are paying out rich dividends that are improving the overall state of the Canadian tech industry.

  • A Strong Entrepreneurship Culture Is Emerging In The Country

Canada’s entrepreneurship culture is miles ahead of the US, which has led to businesses being led by strong and capable individuals who have an innovative approach towards everything.

Over 90% of the founders in Canadian companies with a valuation of $50M+ continue to stay with the company even after their exit, unlike their US counterparts where only 84% of them do so. Canadian entrepreneurs also go on to become venture capital investors and contribute to different public initiatives, thus giving back to the community.

As a result, Canada leads the world when it comes to early-stage entrepreneurship in the First World, a position it has held for the last 5 years.

  • A Diverse Group of Investors Are Working In The Tech Industry

The Canadian VC ecosystem enjoys a strong and sustainable presence, thanks to the strong performance and increasing diversity of the GPs. The active GP population has grown 2x times since 2014. Even though the average private Canadian VC fund has grown in size, there is much room for improvement in this sector.

  • Investors Are Queuing Up to Make Investments in Late-Stage Firms

Late-stage deals have been on the rise in Canada since 2017, meaning that Canadian technology companies are able to enjoy increased support from both domestic and international sources. As of now, Canadian VC investments and US VC investments in late-stage companies are almost the same. When it comes to aggregate value, Canada is expected to catch up to the US in a few years.

Thanks to their global presence, Canadian GPs are able to enter different ecosystems around the world. Canadian companies are also increasingly looking towards expanding into foreign markets as they search for new sources of profits.

Canadian tech entrepreneurs are preparing themselves for challenging times in the near future as the country recovers from the coronavirus-induced financial crisis.

Although the tech industry was able to stave off problems during the first few months of the pandemic, entrepreneurs are about to navigate some tough times going ahead. This includes having to grapple with a recession, a shortage of capital, and rapid technological advances in several different fields.

However, the latest research shows that there are still many reasons for Canadian entrepreneurs to have a positive outlook about the road ahead. The VC ecosystem and vibrant startup culture in the country have undergone massive improvements in the last few years, which means that there are many avenues for them to bounce back from the crisis.

  • Startups are increasingly taking advantage of top-notch university research

Canada is leading the world when it comes to the commercialization of university research. Thanks to the top-class universities in the country with incredible facilities and business incubators, Canada has been able to overtake the US in converting university research into viable startups, a position it has held since 2016. The research programs in different Canadian universities are paying out rich dividends that are improving the overall state of the Canadian tech industry.

  • A Strong Entrepreneurship Culture Is Emerging In The Country

Canada’s entrepreneurship culture is miles ahead of the US, which has led to businesses being led by strong and capable individuals who have an innovative approach towards everything.

Over 90% of the founders in Canadian companies with a valuation of $50M+ continue to stay with the company even after their exit, unlike their US counterparts where only 84% of them do so. Canadian entrepreneurs also go on to become venture capital investors and contribute to different public initiatives, thus giving back to the community.

As a result, Canada leads the world when it comes to early-stage entrepreneurship in the First World, a position it has held for the last 5 years.

  • A Diverse Group of Investors Are Working In The Tech Industry

The Canadian VC ecosystem enjoys a strong and sustainable presence, thanks to the strong performance and increasing diversity of the GPs. The active GP population has grown 2x times since 2014. Even though the average private Canadian VC fund has grown in size, there is much room for improvement in this sector.

  • Investors Are Queuing Up to Make Investments in Late-Stage Firms

Late-stage deals have been on the rise in Canada since 2017, meaning that Canadian technology companies are able to enjoy increased support from both domestic and international sources. As of now, Canadian VC investments and US VC investments in late-stage companies are almost the same. When it comes to aggregate value, Canada is expected to catch up to the US in a few years.

Thanks to their global presence, Canadian GPs are able to enter different ecosystems around the world. Canadian companies are also increasingly looking towards expanding into foreign markets as they search for new sources of profits.

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