🚨New data: Homegrown Canadian startups are disappearing
As the US raises barriers to talent, we need to make it easier to build here
That starts with eliminating cap gains + rewarding ambition.
📊 % of Canadian-founded startups founded in 🇨🇦 vs abroad
(1/12) 🧵
Investing across Canada, the US, and Israel, I’ve had a front-row seat to the inner workings of different ecosystems.
For years, I’ve had a nagging feeling that Canada’s startup engine isn’t firing like it used to.
🇨🇦activity is slowing while tech ecosystems in the US, EU, and Israel seem busier than ever.
The only pipeline we've built in Canada in the last decade is from waterloo to @ycombinator
🇨🇦VCs have shifted from “we invest in Canada” → “we back Canadians wherever they build.”
Until now, this has been anecdotal.
We teamed up with @SpecterHQ to dig into the data.
The numbers confirm what many suspected:
👉 Canada risks losing its next generation of scale-ups.
🚨 COVID was disastrous for Canada’s tech ecosystem.
While the US and Israel rebounded, Canada has yet to.
📊 Last year, the US outproduced Canada 45:1 high-potential startups (vs. 10:1 in 2015). High-potential = >$1M raised.
Sep 22, 2025 · 12:36 PM UTC
Canadian founders who move south raise much more capital 🚀
📊 2x more capital raised in the US than in Canada
Canadian founders who start their company in the US raise capital at higher rates than those who stay:
📊% of companies started that raised >$1M
Founders will and should always make decisions based on what’s best for their business, not national pride.
If Canada can’t offer a better product to founders, they will leave.
@Shopify @ada_cx @360insights @Wealthsimple prove Canada can build global winners.
New players like @turbopuffer @withmantle @datacurve_ai show promise.
There's fresh energy from @jrodgers in Waterloo, to @internetvin @newsystems_ in Toronto.
With tougher US H-1B rules, Canada has a rare chance to attract and keep talent.
The question: how do we turn this energy into global companies built here?
It starts with urgent, bold action:
✅ Eliminate capital gains on startups
✅ Make Canadian tech purchases tax deductible
✅ Channel resources into industries we can be #1 in
We also need a cultural shift.
We need to celebrate people like @tobi who had every chance to leave, but chose to stay and build. He should be on the $5 bill.
If you’re a founder building in Canada, I want to hear from you.
link here to the full report: leaders.vc/canadianstartups
🙏 Thanks to @mimurchison Alan Bekerman, @SpecterHQ , and my @leadersfund colleagues for the collaboration.