This past week at Davos, Canada’s prime minister made global news by reminding the world of what is true.
The impact of that speech is beyond the scope of this newsletter, but its call for clear-eyed action to build strong domestic economies (“every government’s priority,” Carney said) is well within our purview.
If you’re trying to be honest about the world as it is, it helps to have good data. Money services startup Float has just released its 2025 State of Canadian Business report, reflecting the crossroads at which the country’s tech-enabled non-enterprise companies find themselves.
Float’s report notes that the outcome of a year of political and economic turmoil was relatively stable business creation and closure rates. But stability is not the same as progress: while revenue was up across the companies Float surveyed, so too were costs (see above chart).
“The margin between growth and the cost of growth is razor thin,” the report reads. “Each dollar of revenue is costing more to generate. These businesses aren’t struggling with demand but with keeping what they earn.”
The report’s main takeaway is that revenue growth will not be enough in 2026, pointing to margin discipline as the differentiator between profitable progress and simply jogging in place. Float has an equally dim view of companies that seek comfort in the status quo, pining for the end of tariff uncertainty or the return of low-interest lending rates.
As our prime minister has reminded us, nostalgia is not a strategy. It’s time to make choices.
Douglas Soltys
Editor-in-chief
Canada is gearing up for Hannover Messe 2026
This is your chance to be part of one of the world’s most influential industrial technology events.
NGen is once again leading Canada’s presence on the global stage by hosting the Canada Pavilion, bringing together innovative Canadian companies ready to showcase advanced manufacturing capabilities to an international audience.
As an exhibitor, you’ll gain access to valuable networking opportunities, high-impact visibility, and connections with potential partners, customers, and investors from around the world. To help companies take full advantage of this opportunity, NGen is offering up to $10,000 in eligible reimbursements for Canadian exhibitors participating in the pavilion.
If you’re looking to expand globally, attract new business, or highlight your latest technologies, now is the time to secure your spot.
Join Team Canada at Hannover Messe 2026.
General Fusion to go public on Nasdaq via $1-billion USD SPAC deal
General Fusion claims this transaction would make it the first publicly traded pure-play fusion company—meaning a company solely focused on fusion power.
“There is a global race happening in fusion, and we consider ourselves to be Canada’s horse in that race,” General Fusion CEO Greg Twinney said.
Shopify makes more job cuts, this time targeting partnerships team
Starting Wednesday morning, employees in the partnerships division of Canada’s largest tech company began posting on LinkedIn that their roles had been eliminated as part of a broader “restructuring.”
When reached for comment, a Shopify spokesperson pointed BetaKit to an X post from Shopify partnerships VP Atlee Clark that declares “a new chapter” for partners at Shopify. Clark said in her post that she will lead the new partnerships program to help Shopify merchants “capture the AI opportunity.”
Legal cases
- After being sued for an alleged contract breach, Alexi has escalated its legal fight with fellow Canadian legaltech Clio by filing an antitrust claim.
- The co-founders of Deck are calling the non-compete lawsuit from their former employer, National Bank, “frivolous,” denying claims they’ve built a competing FinTech business.
- As big debt repayment deadlines loom, Telesat is facing a lawsuit from creditors that alleges the Ottawa-based satellite operator illegally moved assets beyond their reach.
- A federal judge has set aside the feds’ order to wind down TikTok Canada’s business operations while it awaits another government review.
Mila and Inovia launch venture fund to turn AI research “diamonds” into startups
The new Venture Scientist Fund is raising $100 million USD to identify and back at least 55 “AI-native” startups, bridging Canada’s AI commercialization gap by helping researchers turn their discoveries into products.
Feds call for proposals to build large-scale data centres in Canada
The federal government is seeking Canadian companies to build sovereign AI data centres exceeding 100MW capacity. Submissions opened on Jan. 15 and will stay open until Feb. 15.
Years after selling Inkbox to BIC, the brothers who founded it can’t watch it die
The Handley brothers have submitted a bid to purchase Inkbox three years after selling it to BIC for $65 million USD. BIC recently announced its intention to shut down the business that housed the semi-permanent tattoo company last month.
“I just don’t want to see it not exist anymore,” founder Tyler Handley told BetaKit.
Evolving industries
- As AI and a “tight” fundraising market reshape Canadian proptech, an industry group says 2025 brought signs of maturity, fewer exits, and some possible tailwinds.
- To prepare for wildfire season, three Edmonton companies—FireSafe AI, Wyvern, and AIRmarket—have partnered to create a more comprehensive fire detection and prevention infrastructure.
FEATURED STORIES FROM OUR PARTNERS
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Here’s what’s actually driving Canada’s M&A market
Data from Fasken’s Exit InSights study breaks down who buys Canadian tech companies, the role of strategic buyers versus private equity, and what it means for founders planning an exit.
🇨🇦 Weekly Canadian Deals, Dollars & More
VAN – Heat-pump startup Jetson raises $50M USD Series A
CGY – Chata closes $10M USD Series A to scale deterministic AI model
CGY – Prévoir raises $750K to scale AI-powered fashion platform
TOR – Cyclic Materials secures $75M USD Series C
TOR – Docebo acquires 365Talents for $55M USD
TOR – YC alum DevCycle bought by Dynatrace
MRK – Nordspace receives $335K from NRC IRAP for rocket engines
OTT – Dominion Dynamics nabs $21M to build a “defence neoprime”
MTL – Goodfood Q1 earnings report market “pressure” as sales dip
MTL – Sportlogiq acquired by sports operations platform Teamworks
Take The BetaKit Quiz – Musk fights an airline, Capital One buys Brex, and TikTok stays online
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 January 23, 2026.
Markham leads within Canada’s most concentrated ecosystem of technology, research, talent, capital, and innovation.
Global leaders including AMD, IBM, Qualcomm, Honda, Huawei Technologies, Genova, and GM thrive alongside local pioneers advancing AI, robotics, 3D vision, and renewable technologies. Whether you’re launching, scaling, or expanding, Markham Economic Development connects businesses to the partners, programs, and opportunities that matter.
Connect with our team to discover how Markham can support your next stage of growth.
Feature image courtesy Float.