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Canadian Tech in 100 Words

Shopify, Clio Represent Canada on Future 50 List

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Fortune and Boston Consulting Group’s 2024 “Future 50” list features two Canadian companies: Shopify and first-time entrant Clio. Shopify ranked 25th, slipping from 16th in 2023, but continues to demonstrate strong growth, reporting $5 billion in Black Friday sales—a 20% year-over-year increase.

The Ottawa-based fintech recently surpassed a $200B market cap, securing its position as Canada’s second-largest public company. CFO Jeff Hoffmeister highlighted Shopify’s 26% revenue growth and strong cash flow margins, with the firm forecasting over 30% revenue growth for Q4. The list, dominated by tech giants like OpenAI and Snowflake, underscores Shopify’s global impact.

Want to know more? Check out the source code on Fintech.ca.

AI Chipmaker Tenstorrent Secures Massive Series D Round

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Tenstorrent, a leading AI chip startup, has raised $693M USD in a Series D funding round, valuing the company at $2.7B. Samsung Securities and AFW Partners led the round, with new investors including HOOPP, Export Development Canada, Toronto’s Georgian, and Bezos Expeditions. Tenstorrent develops machine-learning chips, sells servers to data centers, and licenses IP for custom hardware.

Founded in Toronto, Tenstorrent relocated to the U.S. in 2023 under CEO Jim Keller. This marks HOOPP’s first investment in a Canadian AI startup and EDC’s continued backing of the sector, which includes model maker Cohere.

Want to know more? Check out the source code on The Logic.

Apple, Meta, Samsung Absent from Canada Payment Registry

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Apple, Samsung, and Meta are notably absent from the Bank of Canada’s list of payment providers registered under its new oversight regime. The regulation, aimed at reducing risks like hacks and company failures, required non-bank payment services to register by mid-November. While Amazon, Google, and Shopify complied, the central bank is pursuing firms that may have missed the deadline.

Bank of Canada’s Paul Badertscher said companies assessing their registration requirements aren’t included on the list. Apple, Samsung, and Meta, all of which provide payment services in Canada, declined to comment on their absence from the registry.

Want to know more? Check out the source code on The Logic.

Wealthsimple, Clio, Hopper Ride Secondary Market Wave

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Amid a sluggish IPO market, Canadian tech firms like Wealthsimple, Clio, and Safe Software are leveraging the booming secondary market, which reached $68 billion globally in H1 2024. Hopper, the Montréal-based travel platform, is seen as a potential candidate for another secondary deal, following similar moves in 2016 and 2020.

Brightspark partner and board member Sophie Forest suggests secondaries could reward Hopper’s employees and early investors if IPOs remain out of reach. While not actively pursuing a deal, Hopper President Dakota Smith emphasizes there’s no rush to go public. The secondary trend underscores creative liquidity solutions for private tech firms.

Want to know more? Check out the source code on BetaKit.

Lightspeed Restructures, Cuts 200 Jobs to Drive Growth

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Lightspeed Commerce has announced a reorganization impacting 200 employees as part of its strategy to prioritize resources for profitable growth. CEO Dax Dasilva emphasized the company’s focus on North American retail and EMEA hospitality, aiming to streamline operations and strengthen competitive positioning.

Cost savings from the layoffs will be reinvested in strategic areas, with restructuring charges expected in Q3 fiscal 2025. The move aligns with Lightspeed’s ongoing review of strategic alternatives, though no assurances have been given on the review’s outcome. Dasilva reaffirmed the company’s commitment to delivering value while reducing business complexity.

Want to know more? Check out the source code on Newswire.ca.

Shopify Urges Ottawa to End Canada Post Strike

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Shopify has issued an open letter to Canada’s Labour Minister, urging immediate intervention in the ongoing Canada Post strike. The e-commerce giant warns the dispute jeopardizes small businesses, with 67,000 Shopify merchants reliant on Canada Post, especially in rural areas. The 12-day strike has delayed 10 million parcels, disrupting deliveries ahead of Black Friday/Cyber Monday, a critical sales period.

Shopify suggests binding arbitration or legislation to end the standoff. Meanwhile, Canada Post cites mounting financial losses, while the postal union demands better wages and working conditions. Minister MacKinnon, however, has ruled out arbitration for now, citing unresolved fundamental issues.

Want to know more? Check out the source code on BetaKit.

Canadian Tech Faces Investment Chill Amid U.S. Tariff Risks

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Canadian tech startups could face significant challenges if U.S. president-elect Donald Trump enacts a 25% tariff on imports. Hardware and cleantech companies are particularly vulnerable, as steep tariffs on physical goods and components could deter investors, said HarbourVest’s Senia Rapisarda. Software-as-a-service (SaaS) firms may be insulated, barring digital trade rule changes.

Investors predict a possible shift of companies and talent to the U.S., compounded by Canada’s higher capital gains taxes and a weak loonie. Benjamin Bergen of the Council of Canadian Innovators urges government-industry collaboration to bolster competitiveness in future-critical sectors like AI and quantum computing.

Want to know more? Check out the source code on The Logic.

Canadian Media Outlets Sue OpenAI for Copyright Breach

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A coalition of Canadian media organizations, including CBC/Radio-Canada, Postmedia, and The Globe and Mail, has filed a copyright lawsuit against OpenAI in Ontario Superior Court. The lawsuit accuses OpenAI of profiting from unauthorized use of their news articles in training AI products like ChatGPT. The plaintiffs seek punitive damages, profit-sharing, and an injunction to prevent further use of their content.

OpenAI, valued at $157 billion USD, faces similar legal challenges in the U.S. Critics argue AI companies improperly scrape publicly available content, violating terms of service. Media experts say this case could reshape how AI companies compensate content creators.

Want to know more? Check out the source code on CBC.ca.

Toronto’s FleetOps Rebrands to Class8, Raises $30M

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Toronto-based Class8, formerly FleetOps, has raised $30.8M in a Series A round led by U.S. investor Xplorer Capital, with participation from Commerce Ventures and returning backers Inspired Capital and Resolute Ventures. Canadian firms BCF Ventures and Panache Ventures also reinvested.

Founded in 2017 by Chris Atkinson, Class8 uses AI and truck-integrated electronic logging devices (ELDs) to match drivers with shipments and streamline freight operations. The platform currently processes data from 227,000 trucks. Class8 distinguishes itself with features like automated load planning and real-time pricing, advancing its position in the competitive trucking technology market.

Want to know more? Check out the source code on BetaKit.

Canada’s Competition Bureau Sues Google Over Ad Practices

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Canada’s Competition Bureau has filed an antitrust lawsuit against Google, alleging anti-competitive behavior in online advertising. The Bureau seeks a tribunal order requiring Google to divest two ad tech tools and pay penalties for violating competition laws. The investigation, launched in 2020 and expanded this year, found Google abused its dominance in Canada’s ad tech market to entrench its power.

Google denies wrongdoing, claiming robust competition exists and pledging to contest the case. The lawsuit aligns with similar actions in the U.S. and EU, where Google faces scrutiny for alleged monopolistic practices in digital advertising.

Want to know more? Check out the source code on Reuters.