An untapped market for Canadian tech

Our federal government loves consultations.

The feds just launched public CUSMA consultations in preparation for the Canada-United States-Mexico Agreement’s scheduled review next year. The launch follows the recent close of public consultations for Budget 2025, which is set to drop on Nov. 4.

The public budget asks from Canadian tech have been what you’d expect: continued federal program funding (see the ElevateIP story below) and the implementation of SR&ED reforms promised last Fall Economic Statement.

But I heard one idea Thursday night worth adding to the mix from Dayforce CEO David Ossip, who headlined the Council of Canadian Innovators’ 10th anniversary celebration dinner. Fresh from orchestrating a $12.3-billion USD privatization deal for his company, Ossip held court in a fireside chat, offering words of wisdom about AI implementation and market selection.

Ossip’s regrets stood out to me more than his significant success, however.

“My biggest disappointment, I would say in my career, is not getting support from other Canadian technology companies,” he said.

“Cooperation needs to be there and we don’t have that. Everyone inside the room here should be buying everyone else’s products.”

To incentivize such cooperation, Ossip suggested a tax credit against purchases for Canadian companies that buy Canadian technology. I know it’s a running joke amongst policy wonks that the solution to every Canadian problem is a tax credit, but this seems easier to implement than SR&ED (or SR&ED reforms).

Policy aside, the need for Canada to finally buy Canadian was met with applause in the room and seconded by CCI vice-chair John Ruffolo later in the evening.

“In my view, the biggest market in the world for our Canadian innovators is Canada,” he said. “And why I say that is because it’s an untapped market.”

Douglas Soltys
Editor-in-chief

Your Tax Credit Strategy Needs a 2026 Game Plan

Big shifts are coming to Quebec’s CDAE (e-business) tax credit, and for tech companies, the stakes are high.

What’s at risk? Thousands in potential credits, tighter qualification rules, and missed chances to reinvest in your growth.

If you’re hiring developers, building digital tools, or scaling a product-led team, you might still qualify. But with the 2026 rule changes approaching fast, now’s the time to find out.

Why book your free CDAE assessment?

See if you still qualify under the 2026 changes
Get expert insight into what your team structure means for your claim
Discover how much you could recoup to reinvest in growth

Book your free assessment today!

Canadian tech champion and former Rogers CEO Nadir Mohamed dies at 69

Nadir Mohamed, the former CEO of Rogers and a prominent figure in Canada’s entrepreneurial ecosystem, died on Thursday at the age of 69.

Mohamed was an Order of Canada recipient for advancing Canada’s tech sector. He chaired the board of Digital Media Zone (DMZ) at Toronto Metropolitan University, as well as its venture arm, DMZ Ventures. He was also a founding board member of Toronto’s Vector Institute and Next Canada. As a venture capitalist, Mohamed co-founded ScaleUP Ventures, now known as Climate Innovation Capital.

Canada outpaced US in tech talent growth in 2024: CBRE report

Canada’s AI talent pool helped it record stronger tech talent growth than the United States in 2024, according to CBRE’s 2025 Scoring Tech Talent report.

The annual report analyzes the quality of North American markets for “highly skilled” tech talent. Canadian cities like Toronto, Waterloo, Edmonton, and Calgary became stronger tech markets on this year’s list.

Despite the strength of its talent, salary growth in the Canadian tech sector slowed in the face of persistent inflation. According to a Tap Network survey, organizations reported a median salary increase of just 3.5 percent year-over-year in 2025, a significant decline from the 2023 median increase of 7.5 percent.

Canadian VC pre-seed and seed activity continued to slump in H1 2025

New data from the CVCA found that pre-seed and seed-stage investment activity in Canada continued to decline in the first half of 2025 as investors deployed fewer dollars across fewer deals.

The CVCA reports that $297.2 million in venture capital funding was deployed into Canadian technology startups across 133 pre-seed and seed deals. That’s a 16 percent decrease in total dollars invested and a 28 percent drop in deals at these stages compared to 2024.

Startup groups urge Ottawa to extend ElevateIP funding

Canadian startup support organizations are calling on the federal government to re-up ElevateIP. The program, which helps startups file patents and develop an IP strategy to keep innovations in Canada, is set to expire in the spring.

“Thousands of startups are recognizing the importance of IP protection, and cancelling the program now leaves them without support at a pivotal time,” Communitech CEO Sheldon McCormick told BetaKit.

Purpose CEO Som Seif vows to fight OSC greenwashing allegations

Purpose Investments founder and CEO Som Seif says he will “vigorously contest” the greenwashing allegations the OSC has levied against his firm.

The OSC alleges that Seif and Purpose engaged in “false and misleading sales communications” regarding the extent to which environmental, social, and governance considerations factor into its investment-making decisions.

“We are struggling to understand how the OSC is seeing this as a topic for enforcement action against Purpose, and even more specifically against me,” Seif said in a statement.

Pender Ventures partner Isaac Souweine leaves VC firm

Isaac Souweine has left Vancouver-based venture capital firm Pender Ventures after more than three years as partner. Souweine told BetaKit he left to explore other opportunities and projects but said it is “too early” to say what comes next for him.

Two impact-focused Canadian tech firms also changed leadership this week. Former GoFundMe COO Soraya Alexander was named incoming CEO of Calgary-based charitable donation management software firm Benevity, while Toronto-based accessibility tech startup Fable appointed former Boast chief revenue officer Toan Dinh to its top job.

Schulich Venture Academy has a “bigger vision” for upskilling Canadian tech startups

At an event in downtown Toronto last week, Schulich Venture Academy alumni, instructors, organizers, and partners gathered to celebrate the third cohort’s graduation.

SVA leaders outlined the program’s progress and shared a preview of its plans. The goal is to launch three new courses by 2029, three sector-specific clusters (including artificial intelligence, electric vehicles, and cleantech), and double down on community support.

A black-and-white portrait of Harley Finkelstein and David Segal sitting casually on a couch.

Harley Finkelstein and David Segal to explore their entrepreneurial paths at Open House Montréal

BetaKit, TechTO, and Sage have teamed up to host one of the many decentralized tech events taking place in Montréal between Oct. 18 and 24.

As part of Open House Montréal, the three organizations will bring together two of the city’s iconic entrepreneurs: Shopify president Harley Finkelstein and DavidsTea founder David Segal. The duo will share the lessons, challenges, and pivotal moments that shaped their entrepreneurial journeys in a fireside chat at HEC Montréal on Oct. 20.

Why YC and Speedrun feel more like universities than funds

In an op-ed for BetaKit, Danger Capital Corporation’s David Crow argues that Y Combinator and a16z Speedrun are more than capital; they’re the modern equivalent of a university or research lab, rebuilt for the commercialization era. For Canadian founders, that may be the most powerful path available.

🇨🇦 Weekly Canadian Deals, Dollars & More

VIC – Tiny conditionally approved to graduate to the TSX
VAN – ShopVision raises $5.6M CAD for AI market researcher
CGY – Exro shuts down US business amidst TSX delisting review
TOR – HyperComply acquired by SecurityScorecard
TOR – KeyPR partners with Montréal’s Nesto
TOR – Cohere opens Paris office to act as its European hub
TOR – 1Password partners with Silicon Valley AI giant Perplexity
MTL – FeX Energy raises $4.78M CAD to build iron-based reactor
SHB – New Tatum Bioscience study poses a scalable cancer vaccine

The BetaKit Podcast — Why Canada’s defence tech sector is suddenly exploding

“It actually allows us an opportunity to build sovereign capability and leapfrog to get our armed forces where they need to be by taking advantage of leapfrog Canadian technologies.”

US President Donald Trump opened his mouth and suddenly Canada needed a defence tech sector. The Icebreaker’s Matthew Lombardi was conscripted by the federal government to help map that sector; he joins to explain why many of the technologies Canada currently develops have a dual use in defence.

Take The BetaKit Quiz – LimeWire on Fyre, Cohere au Paris, and Shopify’s Mensa member

Think you’re on top of Canadian tech and innovation news? Time to prove it. Test your knowledge of Canadian tech news with The BetaKit Quiz for September 19, 2025.

Join Canada’s largest AI event, September 24–25 in Montreal.

ALL IN brings together the country’s most dynamic AI ecosystem — from visionary companies adopting AI to cutting-edge startups building AI. With over 6,000 participants, including 200+ world-class speakers and 100 of Canada’s top AI startups, this is the place to connect, collaborate, and move ideas forward.

With 55% of attendees being AI adopters and 45% being AI providers, ALL IN is a prime opportunity to build powerful business relationships and discover practical solutions to scale AI adoption.

Feature image courtesy CCI.

FEATURED STORIES FROM OUR PARTNERS

🇨🇦 Weekly Canadian Deals, Dollars & More