Canada is becoming an increasing popular location for the creation of startups – in the first nine months of 2016 alone Canada’s venture capital scene saw an outstanding $2.5 billion in activity. There are an assortment of reasons why startup owners are choosing Canada as their company’s location of choice. In this blog post we’ve put together a list of the top 4 reasons why now is a great time to own a startup in Canada.
1. Great Technical Talent
You don’t need to be located in Silicon Valley anymore to attract top technical talent to your startup. Canada boasts some of the best engineering universities in North America, so much so that Google and Facebook are constantly recruiting from them.
2. Access to Government Grants
There are a variety of government grants available to Canadian startups including FedDev Ontario and the Industrial Research Assistance Program (IRAP). When it comes to tax season, federal governments also endeavor to provide relief for local startups. If your startup is engaged in any research and development activities you might be eligible for an SR&ED (Scientific Research & Experimental Development) tax credit. According to one startup owner, this credit can give back up to 50% on cash investments made into R&D.
3. Favorable Exchange Rate
Canada’s favorable exchange rate versus the US dollar is giving Canadian companies who raise capital from US investors a significant boost. If you fit in this category you can expect to receive a much larger investment than anticipated when exchange rates are factored in, allowing you to funnel the excess back into your startup.
4. Seed Capital
The last ten years have seen a substantial increase in available seed capital in Canada. Startups in Toronto alone can expect to receive equal capital to their counterparts in San Francisco meaning it’s never been a better time to begin a seed stage company in Canada.
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