[brockm]

I agree tech companies in Canada pay far lower compared to our neighbor. Matter of fact my friend who making 60K in Toronto was got an offer for at MS for 110 k+. Not to mention bonus, stock, and other benefits. Almost all new Canadian graduates look for jobs in US. Health system sucks however most jobs offer very nice health coverage. It's unfortunate we don't get treated equally for exactly the same type of work, when they see all the smart people leave hopefully companies will change their mind about being competitive.

It's not a matter of treating people differently. It's that there isn't a need for dynamic tech people in Toronto, because the sector itself is not dynamic.

There's no risk capital in Canada. None. Nada.

If the founders of Google, Sergei and Larry had walked into investors in Toronto (even today) and asked for venture capital, this is how it would have gone:

Investor: How much revenue do you have?
Larry & Sergei: None right now.
Investor: Then your company is worth nothing.
Larry & Sergei: But...
Investor: Come back when you have some earnings.

I know several people who finally had to move their company to the Bay Area after spending 2+ years getting this treatment from every investor they met.

The salaries are low, because the sorts of tech jobs here are crap. Nothing innovative is happening, because no venture capitalist will take a risk on something that isn't already turning a profit.

Toronto is a resource sector town. Even the financial sector in Toronto is geared towards financing the resource sector. You want to find VCs that understand diamond mining, the risks, the rewards, etc... in Toronto, you're in the right place. You have the next big tech innovation? VCs here will blank stare you if you're not already profitable. Or, they'll want 80% of your company for next to nothing.

 

[cdr108]

.....If the founders of Google, Sergei and Larry had walked into investors in Toronto (even today) and asked for venture capital, this is how it would have gone:

Investor: How much revenue do you have?
Larry & Sergei: None right now.
Investor: Then your company is worth nothing.
Larry & Sergei: But...
Investor: Come back when you have some earnings.

... VCs here will blank stare you if you're not already profitable. Or, they'll want 80% of your company for next to nothing.

sounds like the words and actions of Mr. Wonderful Kevin O'Leary

 

[brockm]

sounds like the words and actions of Mr. Wonderful Kevin O'Leary

Despite O'Leary's caustic and offensive manner, his attitude towards VC investment is pretty typical of Toronto investors. Anyone who has been involved in the scene will tell you this.

 

[CN Tower]

Despite O'Leary's caustic and offensive manner, his attitude towards VC investment is pretty typical of Toronto investors. Anyone who has been involved in the scene will tell you this.

Fundamentally I think risk capital in general- angel funding, VC, etc. is less inclined to recognize some of the ridiculous valuations that so many tech start up demand and therefore Canadian venture capital in general sits out most big tech opportunities. I think this approach saved Canadians billions in the dot com bubble and probably keeps Canadian firms out of the game. For every Zynga there is 100 failures and even some of these tech darlings ultimately crash & burn by the time they hit the public markets.

In general Americans are bigger risk takers but I believe they've just perfected the art of persuading (bullshitting?) the big capital movers to take risk because everyone along the line is incentivized not by profit but by bigger and bigger transactions.