Canadian tech sector warns of accelerating exodus of founders to the United States
Canada’s technology community says a growing number of its founders are relocating to the U.S., taking billions in venture capital with them.
A recent analysis identified at least 517 tech firms in the United States whose founders were educated in Canada, together securing more than US$400 billion in funding. The flow of entrepreneurs has accelerated, with annual departures climbing from just over 20 before 2023 to 60 in 2023 and 93 in 2024. Most of these founders—88 %—graduated from Canadian universities such as Waterloo, Toronto and McGill.
High-profile examples include OpenAI co-founder Ilya Sutskever, Uber founder Garrett Camp, and eBay’s Jeff Skoll. Critics blame Canada’s tax regime and regulatory environment, while others point to the sheer scale of U.S. investor capital and networking opportunities. Calls for action range from tax adjustments to broader strategies aimed at retaining talent, especially as trade tensions with the United States heighten the urgency.
Why it matters
The departure of tech founders drains Canada’s innovation potential and future economic growth.
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