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Canadian Tech in 100 Words

New Report Highlights Growth Challenges for Canadian Startups

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Canadian startups trail international peers in exits and growth-stage funding, a new report by Charles Plant reveals. While Canadian startups founded in 2014 raised an average of US$30 million—second only to the U.S.—few advanced to Series B funding, with just 8.4% reaching this milestone.

Canada leads in IPO rates at 8.1%, but most were on junior exchanges, raising less than international averages. Acquisitions also lag, with only 10.4% of startups being bought, often out of financial necessity. Plant suggests a “go-to-market” gap, urging reallocation of government funds to support scaling efforts over early-stage R&D.

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

United, Air Canada First to Support AirTag Integration

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United and Air Canada are the first airlines to adopt Apple’s “Find My Share Item Location” feature, streamlining the recovery of lost luggage. Integrated with Apple’s Find My app, the feature allows AirTag users to share secure location links with airline customer service, expediting the process.

Available with Apple’s iOS 18.2, the encrypted link expires after seven days or when the bag is returned. AirTags supplement existing tracking systems, addressing gaps where airline systems fail. Apple plans to expand the feature to nearly 20 additional airlines, enhancing travel experiences worldwide.

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

Ottawa Expands SR&ED with $26B in Tax Breaks

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The Canadian government has revamped the Scientific Research and Economic Development (SR&ED) program, allocating $26 billion in tax incentives to bolster R&D. Publicly-traded firms can now claim 35% of eligible expenditures, up from 15%, while refundable credit limits rise from $3 million to $4.5 million.

The changes address long-standing complaints about accessibility and paperwork, but critics highlight increased benefits for large foreign-owned subsidiaries. Ottawa will add $1.9 billion to SR&ED funding over six years, with $4 billion distributed annually. These reforms aim to drive innovation and make the program more valuable for both private and public companies.

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

Canada’s $100M Tech Club Eyes IPO Opportunities

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Canada boasts 71 private tech companies with $100M+ annual revenue, including PointClickCare and GeoComply. These firms represent a new class of profitable scaleups resisting early sell-offs and exploring IPOs amid strong private backing.

While some firms, like Wealthsimple and 1Password, prepare for public markets, others prefer private equity to sustain growth. Critics highlight market volatility and stricter IPO readiness standards, with $300M+ revenue seen as a benchmark for success. Canada’s tech evolution offers a robust future, with leaders aiming to create enduring, generational companies that may reshape public market tech investments.

Want to know more? Check out the source code on The Globe and Mail.

Vancouver Moves to Become Bitcoin Capital

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Vancouver is aiming to be North America’s bitcoin capital. City Council approved Mayor Ken Sim’s motion to explore bitcoin-friendly policies, including accepting bitcoin for taxes and holding it in reserves.

Sim, a vocal crypto enthusiast, believes bitcoin’s performance and inflation hedge make it a smart addition to the city’s portfolio. Vancouver’s crypto history includes hosting the first bitcoin ATM and Canada’s first crypto-accepting nightclub.Critics warn of risks from bitcoin’s volatility and legal challenges under municipal and federal laws. The council’s findings will determine if Vancouver can lead in municipal cryptocurrency adoption.

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

D-Wave Raises $175M to Advance Quantum Computing

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D-Wave Quantum has raised $175 million USD to support technical development and operations, ending 2024 with an expected $160 million in cash. CEO Alan Baratz called the funding “a substantial improvement” to the company’s financial strength.

Despite 25 years of development, D-Wave remains in early stages, facing heavy losses. Q3 revenue dropped 27% year-over-year to $1.9 million, while net losses rose 41% to $23 million. Founded in Canada and now headquartered in Palo Alto, D-Wave retains strong ties to Burnaby, BC. Shares, trading at $3.91, reflect both challenges and recent growth.

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

Montréal’s Flare Secures $30M USD for Cybersecurity Expansion

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Montréal-based Flare has raised $30 million USD to expand its AI-driven cybersecurity software across North America and Europe. Led by Base10 Partners, with backing from Fonds de solidarité FTQ and returning investors, the funding will scale Flare’s threat monitoring platform and grow its 100-person team.

Flare’s software detects leaked credentials and dark web activity, using AI to proactively reset passwords and alert security teams. CEO Norman Menz highlighted its effectiveness, claiming a 98% accuracy rate in identifying cyber threats. Founded in 2017, Flare’s solutions now serve sectors beyond finance, including health, tech, and pharmaceuticals.

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

WELL Health Plans $285M Spinoff After Equity Raise

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WELL Health is splitting its operations into two companies: one for healthcare delivery and a new spinoff, Wellstar, to provide services to other health providers. The Vancouver-based firm raised $50.4 million at a $285 million valuation, with investment from Mawer, Edgepoint, and PenderFund.

Wellstar will incorporate two newly acquired, unnamed tech firms. WELL Health COO Amir Javidan will become CEO of Wellstar, with WELL retaining majority ownership. Well’s tech services generated $15.6M in quarterly revenue—10% of clinical services earnings but with higher margins—highlighting the spinoff’s growth potential.

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

Air Canada Buys First Domestic Low-Carbon Jet Fuel

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In a sustainability milestone, Air Canada purchased Canada’s first batch of domestically produced low-carbon aviation fuel (LCAF) from Parkland’s Burnaby Refinery. Made from non-food-grade canola and tallow, the 101,000-litre pilot batch positions Canada as a player in sustainable aviation fuel (SAF).

CEO Michael Rousseau called this “a critical first step” in reducing emissions. British Columbia’s government praised the achievement, citing forward-thinking policies. Parkland’s Ferio Pugliese highlighted the collaboration’s impact on aviation’s net-zero goals. LCAF offers lower emissions and compatibility with existing aircraft, marking a transformative moment in Canadian aviation sustainability.

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

Sanctuary AI Advances General-Purpose Robot Technology

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Vancouver-based Sanctuary AI has unveiled dexterous robotic hands with 21 degrees of freedom, a milestone in general-purpose robotics. The hands, capable of in-hand manipulation, were developed using miniaturized hydraulic valves, offering unmatched speed, strength, and durability.

Interim CEO James Wells emphasized the significance: “Dexterity expands the market for humanoid robots.” Sanctuary’s robot, Phoenix, powered by the AI system Carbon, is seen as a breakthrough in human-like intelligence. In 2024, Sanctuary achieved a capital raise, a Microsoft partnership, and deployments at Manga facilities. The company, founded in 2018, continues to pioneer robotics innovation.

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