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Startups in Canada

6 points by vaidhy ↗ HN
I have been following the posts on remote jobs, US jobs and H1B jobs. Is there some reason why Canada is not the preferred destination? For people like me, Canada seems to be a good choice - similar culture to US, liberal immigration policies and proximity to US market. Let us hear it once for the canadian startups (esp. ones willing to hire ;) )

4 comments

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kitcar
The proximity to US market means many of the "best and brightest" workers + companies end up migrating south of the border, resulting in an overall lackluster tech environment when compared to any of the major US cities.

If you look at many SF and NYC startups, as well as Facebook, Yahoo, and Google's rosters, you will find many Canadian tech entrepreneurs - maybe even moreso than within Canada itself :)

There was also historically issues with Canadian startups getting foreign investment / selling to a foreign company, although that situation is now changing.

For general info about the Canadian startup scene check out http://www.startupnorth.ca/

Ryan_IRL
Coming from a Canadian entrepreneur/hacker, I can say despite our best efforts it's still sort of hard to be taken seriously by some investors. Where I live there is still a huge focus on oil and energy, so unless your technology is applicable to that industry you have only a handful of angels who understand tech who haven't already moved on to silicon valley, etc.

The brain drain effect is pretty serious here. Why wouldn't I want to go somewhere where the other smart people are, and where I can pretty much wear shorts 10 months out of the year? Culture/politics aside, the US is still one of the best places to live if you have money.

danielharan
If you have good technical skills, the Montreal market is going to explode in 2011. Two new incubators (Real and Year One Labs) will be providing seed money - successful companies will have trouble hiring.

Salaries aren't as high as NYC or SV, although the cost of living is also much lower.

dstein
The payscale for computer professionals in Canada is 1/4 to 1/2 the salaries in the US. But the dollar is now par which helped a bit.

There is little venture capital available to computer/software startups. The few incubators in Canada have ridiculously terrible terms -- eg. 20% equity for a seed investment. Most Canadian startups look to the US for investment, or move to SV if possible.

The TSX and TSX Venture stock markets are entirely geared toward energy & alternative energy companies. If you intend to go public you'd probably have to move and re-incorporate in the US.

The Canadian government is generally not very supportive of (non-energy) technology companies. Most small business incentives are only for large-ish companies that want tax breaks for investing in solar & wind energy.