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Canadian Tech in 100 Words

 

Calgary’s Neo Financial Expands with Rapid Growth

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Calgary’s Neo Financial has had a standout 2024, achieving first place in Deloitte Canada’s Technology Fast 50 with three-year growth exceeding 150,000% and topping Report on Business’s Canada’s Top Growing Companies with 38,000% revenue growth. The fintech expanded partnerships with CI Financial and the Canadian Elite Basketball League while launching new features, including credit-building tools for newcomers.

Neo capped the year with a $360M Series D fundraising round, backed by notable investors like Tobi Lütke and Stewart Butterfield. Despite the success, shares were issued at reduced valuations, with a majority sold to a Chinese investor.

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

Hopper Aligns for Growth with Latest Staff Reductions

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Montréal-based travel booking firm Hopper has laid off about 10% of its workforce, or 60-65 employees, following the renewal of its partnership with Expedia. Hopper confirmed the layoffs were part of a restructuring to focus on growth and profitability. The cuts primarily impacted the direct hotel team, which Hopper had relied on since Expedia ceased its inventory supply in 2023.

The company had previously reduced its workforce by 30% in October 2023 to prioritize B2B offerings, which now comprise two-thirds of revenue. Hopper aims to achieve profitability within two years while postponing any plans for an IPO.

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

Wildfire Tech, Clean Energy Innovations Get Boost

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The B.C. Centre for Innovation and Clean Energy (CICE) has invested $7.7 million in 13 climate tech projects, advancing wildfire mitigation, clean energy, and decarbonization technologies. Six wildfire tech companies, including CRWN.ai and FireSwarm, received $3.5 million to address the rising threat of wildfires.

An additional $4.2 million supports seven innovators in low-carbon hydrogen, energy storage, and sustainable fuels. Notable projects include EV snowplows, algae-derived biofuels, and advanced hydrogen fuel cells. This funding underscores CICE’s commitment to scaling transformative solutions and driving B.C.’s clean economy. Applications for CICE’s Women in Climate Tech initiative close December 3.

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

Cleantech Struggles in Canada Despite Global Growth

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Canada’s cleantech sector struggles to secure domestic investment, forcing startups to seek global backers. Experts like Haskayne professors Koskinen and Pandes cite policy uncertainty and investor risk aversion, in contrast to U.S. regulatory support through the Inflation Reduction Act.

Calgary’s Eavor Technologies raised $135M internationally for its geothermal project, a feat founder John Redfern attributes to global outreach and lobbying. Ontario Clean Technology Industry Association’s Peter McArthur highlights successful Canadian examples like Cyclic Materials, but notes scaling remains elusive. With Canada needing $2 trillion to reach net zero, missed opportunities could shift profits abroad.

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

Big Six Banks Expand Crypto Exposure via ETFs

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Canada’s six largest banks now hold a combined US$21M in U.S. bitcoin ETFs, per recent SEC filings. BMO leads with US$13.5M, followed by Scotiabank and RBC. While some holdings reflect client investments, others remain unclear. Bitcoin ETFs, launched in January 2024, have gained rapid popularity, surpassing US$100B in global assets.

Historically wary of crypto, Canadian banks now bolster expertise to handle emerging risks flagged by regulators. OSFI’s new disclosure rules on crypto exposure take effect in January 2025. Though volatile, bitcoin ETFs mitigate risks tied to crypto-trading platforms, offering a bridge between traditional finance and digital assets.

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

Private Couriers Step Up Amid Canada Post Strike

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Canada’s e-commerce market, projected to surpass US$100 billion by 2029, faces significant disruption as Canada Post strikes during peak shopping season. With over 27 million Canadians shopping online, private couriers like UPS, Purolator, and startups such as UniUni and Stallion Express are absorbing demand.

“The strike has disrupted the entire e-commerce ecosystem,” notes Stallion Express analyst Jose Sagun, citing customer dissatisfaction and business reputation risks. Diversifying shipping strategies and leveraging tech-forward logistics are crucial to mitigating such crises. Notably, UniUni’s 12,854% revenue growth secured it fourth place on Deloitte’s Fast 50 list, highlighting innovation amidst challenges.

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

Stimulus Sparks Inflation Worries for BoC

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Canada’s new $6 billion stimulus package, featuring a GST holiday and $250 cheques for workers earning under $150,000, is making the Bank of Canada reconsider rapid rate cuts. The GST suspension, spanning December 14 to February 15, and spring stimulus cheques could reignite inflation, already higher than expected last month.

Economists forecast a modest 25-basis point cut in December, though RBC anticipates 50 points. Rising bond yields show investor caution, and the BoC is also watching U.S. Federal Reserve signals of slower cuts. Stimulus-driven demand may delay further rate reductions.

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

    Alberta Invests $50M in Cutting-Edge Drilling Hub

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    Alberta has unveiled the Alberta Drilling Accelerator, a $50 million initiative funded by carbon tax revenue to support geothermal energy, helium, carbon capture, and critical minerals. Canada’s first open-access, technology-agnostic drilling hub will attract global investment and innovation, tackling high drilling costs that hinder geothermal projects.

    Major energy players like Tourmaline Oil and Eavor Technologies are already involved. A feasibility study will determine the hub’s location, with operations set to begin in 2026. The non-profit project aims to repurpose Alberta’s oil and gas expertise for clean energy, fostering economic growth and supporting net-zero goals by 2050.

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

    Electric Motorcycle Maker Damon Eyes 2026 Production

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    Damon Inc., maker of advanced electric motorcycles, announced development milestones and a roadmap to production, contingent on securing capital. Key achievements include over 3,000 pre-orders worth $100M and advanced work on its HyperDrive™ powertrain. The company targets late-2025 pre-production completion and 2026 manufacturing in San Rafael, CA.

    CEO Jay Giraud highlighted funding challenges, citing volatile markets and high inflation delaying progress. Despite setbacks, Damon’s Nasdaq listing and partnerships with Grafiti Holdings and industry leaders offer hope. The company remains focused on reinventing motorcycling with cutting-edge safety and battery technologies.

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

    Hitachi Rail Invests $100M in Toronto Expansion

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    Hitachi Rail is investing over $100 million in Toronto to upgrade its SelTracTM (G9) CBTC signalling technology, incorporating AI, 5G, and cloud computing. Supported by a $4.5M Invest Ontario grant, the project creates 100 new jobs while retaining 1,000 skilled positions at its York Mills office.

    The Ontario-developed CBTC system, used in over 100 transit lines worldwide, improves operational efficiency, lowers costs, and enhances passenger experiences. Ontario’s strong tech ecosystem, paired with Hitachi Rail’s expertise, positions the province as a leader in smart mobility innovation. This expansion boosts Canada’s transit capabilities and strengthens Ontario’s economy.

    Want to know more? Check out the source code at Invest Ontario.