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Canadian Tech in 100 Words

Canadian Startups Raise $7B in 2024 Amid AI Boom

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Canadian startups raised US$2.1 billion across 134 deals in Q4 2024, with AI companies securing 40% of funds. Total venture investments reached US$7 billion for the year, a slight increase from 2023 but still far below 2021’s US$13.7 billion peak. AI and life sciences led the market, with AI firms raising US$824.2 million, boosted by Tenstorrent’s US$700-million round.

Cleantech, once resilient, saw declines, partly due to halted federal grants. Investors remain optimistic for 2025, citing government incentives and falling interest rates. However, challenges persist for pre-revenue startups navigating a cautious funding environment.

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

Employer.com Acquires Vancouver’s Bench Amid Shutdown Fallout

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Vancouver-based Bench, a prominent accounting startup that abruptly shut down last week, has been acquired by San Francisco’s Employer.com. The deal, with an undisclosed price, aims to revive the platform and address disruptions for 12,000 small business customers ahead of tax season.

Employer.com plans to relaunch Bench soon, offering clients options to continue services or transfer data elsewhere. Many of Bench’s 600 former employees may be recalled, as the HR tech firm integrates its new acquisition. Employer.com CEO Jesse Tinsley called the move part of a broader HR-focused strategy. Customers now await a smoother transition under new ownership.

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

Taylor Swift Tops 2024 Rogers 5G Shared Moments

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Rogers has unveiled 2024’s most shared moments on its 5G network, highlighting Canadians’ passion for music, sports, and nature. Taylor Swift’s Eras Tour dominated, with Toronto and Vancouver concerts generating 74TB of data—enough to stream her music catalog 63,000 times.

Sports fans rallied behind events like the 111th Grey Cup (3.95TB) and Blue Jays’ home opener (3.1TB). A solar eclipse drew Montreal, Niagara Falls, and Kingston residents to share 184,000 photos, consuming 8.83TB. “We’re committed to keeping Canadians connected,” said Rogers CTO Mark Kennedy.

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

Vancouver’s Bench Accounting Closes Abruptly Ahead of Tax Season

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Vancouver’s Bench Accounting, North America’s largest small business bookkeeping service, has abruptly shut down, leaving thousands without support before tax season. The company announced its closure via a “Notice of Service Closure” on its website, confirming operations ended December 27, 2024.

Social media accounts have been deactivated, and reports indicate widespread layoffs. Founded in 2012, Bench served over 11,000 clients and had raised over $100 million from investors, including Shopify. Former CEO Ian Crosby suggested the closure serves as a cautionary tale for venture capitalists. Customers and employees face uncertainty as the fintech giant’s sudden collapse reverberates.

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

Canada Post Strike Jolts Charities’ Year-End Drives

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Canada Post’s strike has left Canadian charities scrambling as critical year-end direct mail campaigns crumble, threatening their essential programs. Nearly half of Canadians who typically donate via mail are not switching to online giving, according to an Ipsos poll commissioned by CanadaHelps. Charities like Distress Centres of Greater Toronto and TB Vets Charitable Foundation face dire revenue shortfalls, jeopardizing services such as crisis intervention and respiratory care.

CanadaHelps highlights the growing importance of subscription giving and engaging Millennials and Gen Z through digital platforms. Charities must accelerate their digital transformation to ensure resilience against future disruptions.

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

Shopify-Led Frontier Buys 667,000 Tonnes of CO2 Credits

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Frontier Climate, co-founded by Shopify, Google, Stripe, Meta, and McKinsey Sustainability, purchased 667,000 tonnes of carbon removal credits in 2024, supporting 16 CO2 removal deals. The initiative, launched in 2022, aims to bolster the emerging carbon capture sector by providing revenue to startups for successfully storing atmospheric CO2.

Key contracts include Vancouver’s CO280, receiving over 224,000 credits for capturing biomass emissions, and Connecticut’s CREW, which secured 72,000 credits for its CO2-reactor technology. Shopify’s CEO, Tobi Lütke, underscores the Sustainability Fund’s commitment to advancing carbon removal innovation as vital for climate solutions.

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

Montreal’s Valsoft Expands Acquisition War Chest

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Montreal-based Valsoft has raised $150 million USD in equity financing, achieving a valuation of over $2 billion. The round was co-led by Portage Capital Solutions and Viking Global Investors, with Propelr Growth also participating. Valsoft specializes in acquiring and growing software firms in sectors like dental practices, construction, and government, boasting over 100 acquisitions to date.

This latest funding follows a $170 million debt raise in January and bolsters its capacity for further acquisitions. Operating similarly to Constellation Software, Valsoft centralizes resources for its acquired companies, providing marketing expertise and capital to drive growth.

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

Sitemate Raises $18M to Redefine No-Code in Industry

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Sitemate, Australia’s rising SaaS star, has raised $18M USD in Series A funding led by Blackbird, joined by Shearwater Capital and Marbruck. Known for its flexible no-code platforms, Sitemate empowers built world companies to ditch clunky all-in-one systems for customizable tools.

The company doubled its workforce to 140 in 2024 and rebranded its Nomad Fleet acquisition as Gearbelt. Offices in Vancouver and Toronto are already operational, with a Texas team planned for 2025. CEO Hartley Pike credits six years of monthly growth to Sitemate’s Atlassian-style product suite, built for flexibility, simplicity, and real-world efficiency.

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

Zombie Funds Haunt Canada’s Venture Capital Scene

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The number of new Canadian venture capital (VC) funds is plummeting, with just 14 launched in 2024, the lowest in a decade, according to PitchBook. Behind this trend lurk “zombie funds,” VC firms unable to raise new financing but still managing old portfolios.

Liquidity challenges, weak returns, and inflated valuations during low-interest years have deterred investors from reinvesting in underperforming funds. Emerging managers, particularly vulnerable, face prolonged breaks or reduced operations.

Despite this downturn, initiatives like the federal Venture Capital Catalyst Initiative and secondary investment deals offer hope. Experts foresee gradual recovery, though the zombie fund dilemma remains urgent.

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

Fiserv to Acquire Toronto’s Payfare in Major Deal

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Fiserv, a global financial technology leader, has announced its agreement to acquire Toronto-based Payfare. The deal, pending shareholder and court approvals, is set to close in early 2025. Known for its instant banking solutions for gig workers and hourly employees, Payfare’s innovations include its Pronto platform for on-demand wage access.

Fiserv aims to integrate Payfare’s program management solutions with its own banking and payment expertise, enhancing embedded finance solutions for enterprises. CEO Marco Margiotta called the merger a “tremendous opportunity.”

The acquisition aligns with Fiserv’s goal to empower clients with scalable financial tools for workforce payments and lending solutions.

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