There are many perks of scaling your start-up in the country, the most common being Government incentives, says Esha Chopra
The dynamic start-up scene in Toronto, Canada is gaining momentum with early-stage start-up founders. In a 2020 report by StartupBlink, Canada ranked third in the world for COVID-19 innovation, and Toronto ranked fourth in the world.
Here are some reasons why you should consider moving your start-up in Canada:
Tech-innovation: In a bid to lay the groundwork for a greener, stronger and more resilient economy, the Candian Government has made investments in technology innovations. In early 2021, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced investments of $55.1 million in clean technology companies across Canada. This funding will support small and medium-sized companies that are developing innovative solutions to help reduce greenhouse gas emissions, lessen the environmental impacts of conventional mining methods and support more sustainable agricultural practices.
Government incentives: The Canadian Government has special programmes for entrepreneurs around the world wanting to scale in the North American market. The Start-up Visa Program is designed for international entrepreneurs with businesses that are innovative and have the potential to grow in Canada.
The programme offers Permanent Residence to entrepreneurs to help support them in their growth story.
The recent Budget proposes to provide $1.4 billion over four years, starting in 2021-22 to help as many as 160,000 small-and-medium-sized businesses adopt new digital technologies post pandemic.
With competitive combined federal and provincial manufacturing corporate income tax rate at 25 per cent and other Government tax benefits contribute to significant research and development cost savings for any early-stage start-up finding its ground in a new market. Over the past decade, the Government has developed tax incentives, loans and wage subsidies to entrepreneurs who want to nurture their start-up on Canadian soil.
Funding: The Canadian Venture Capital & Private Equity Association (CVCA) boasts dozens of members and tracks deals by region and amount. According to its data, the Canadian venture capital market is booming. According to KPMG’s report in April 2021, Canadian venture funding hit a record high of $2.49 billion in the first quarter of 2021, solidifying Canada’s position as a global start-up hub.
Availability of top talent: Fueled by a strong set of universities, the student-friendly immigration policies allow talented individuals from around the world to join the workforce in Canada every year. Top technical universities like University of Toronto, the University of BC and McGill and Waterloo, Canada offer access to the workforce without the cutthroat competitiveness of Silicon Valley. The sixteen research universities in the region produce graduates and experts in fields as diverse as quantum computing, theoretical physics and artificial intelligence.
Proximity to software giants and financial institutions: Financial Institutions like JP Morgan, Citi, Morgan Stanley etc and software moguls like Amazon, Microsoft, Facebook among others all have a growing footprint in Canada.
Start-up Culture: Successful start-ups like Slack, Shopify, FreshBooks, Tunnel Bear, Wattpad, Hootsuite and others were founded in Canada and continue to thrive. The impact of COVID-19 has not curtailed investment in Canadian technology and other high-growth sectors like ed-tech, healthcare, fintech and AI.
The writer is Director, Strategy and Marketing,Toronto Business Development Centre (TBDC)