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Canadian Tech in 100 Words

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.

    Federal Funding Boosts B.C.’s Cleantech Leadership

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    Canada has announced $12M in funding for clean technology projects in British Columbia, including $5M for Squamish-based Carbon Engineering. Under the Energy Innovation Program, Carbon Engineering will develop alternative energy solutions to power direct air capture systems, reducing their environmental footprint and advancing electrification.

    Other B.C. recipients include British Columbia Biocarbon ($2.5M) and Arca Climate Technologies ($1.8M). Federal Minister Jonathan Wilkinson emphasized the role of carbon management and clean fuels in achieving Canada’s net-zero goals. MP Patrick Weiler highlighted the importance of B.C.’s innovations in creating jobs and fighting climate change.

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

    Tencent Leads $80M Investment in Neo Financial

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    Calgary’s Neo Financial has raised US$80M in equity financing, led by Chinese tech giant Tencent, valuing the fintech at US$510M—down sharply from its US$1B valuation in 2022. Tencent invested US$50M, securing a passive stake under 10% with limited rights. Neo, founded by SkipTheDishes co-founders, boasts 1.3M customers and $100M in annual revenue, aiming for profitability by 2025.

    Questions surround the involvement of a Chinese backer, amid geopolitical concerns over data privacy. Neo insists customer data is secure and remains Canadian-controlled. The company continues its rapid growth, adding 100,000 customers per quarter and expanding into small-business banking.

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

    Trump’s Tariff Threat Puts Canada’s EV Industry on Edge

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    Donald Trump’s proposed 25% tariff on Canadian and Mexican goods threatens Canada’s EV sector. Automakers warn that tariffs on cross-border components could raise vehicle costs and worsen inflation. Linamar chair Linda Hasenfratz highlights the cost impact of parts crossing borders multiple times.

    With EV battery components heavily reliant on China, added tariffs may increase Canadian production challenges. Heather Exner-Pirot of the Business Council of Canada notes U.S. reliance on Canadian nickel and cobalt, critical for EV batteries, complicates Trump’s plan. Trade lawyer Sean Stephenson cautions retaliation under USMCA could take time, leaving uncertainty for Canada’s auto sector.

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