Canada Is A Job Fair

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Posted Feb 13, 2012

By: Jamie Clarke

Startups are putting Canada on the map. And not wishy-washy startups either, we're talking big names and players like Zite, Summify and Flickr. These are just a few of the names of industry leaders that are putting Canada and our startups in lights across the world. But that presents a problem, and a massive opportunity for Canadian investors.

The problem?

How do you keep Canadian startups in Canada? A simple hop south of the border and you're in the land of milk and honey for startup investments. Chances are after a Canadian startup receives a sizeable investment or a buyout from South of the Border they will be gone, taking their innovation and creativity with them. And while there's may be gone, they serve as an inspiration to up and coming Canadian entrepreneurs. Are system is different than the American system. When you hit the "Bigs" in the States, you stay and you ride the waves. In Canadian terms, when you get the call, it's almost the same as going from the Minor's up to the Major's. But what you do when you leave is create space for the next draft pick to come through and make their case for success.

So it's a problem in the sense that our successful entrepreneurs tend to leave the country, some even going on to become investors themselves funding American entrepreneur. At the same time, a startup getting funding, no matter where they are, is good for every startup and that is what matters. And if we put a very Canadian spin on the situation, it isn't really that much of a problem, we're creating the expectation that stellar startups come from Canada and that our talent pool has depth.

The Opportunity?

For investors, the opportunity is huge. Canadian startups tend to stay in Canada in their first few rounds of funding. Let's just say that means Seed and Series A. This is when investors can get involved in a startup for the highest stake at the lowest price, but also when startups are the riskiest. Which means for Canadian startups investors, risk/reward is a strong and ever present feeling. If you look at Canada like a job-fair for startups, the more success our startups have, and the more often they get taken south of the border, the more eyes turn towards what we have in store next. And that signals good signs for investors and startups alike.