Hype-free Canadian tech startups may find prudence pays

February 28, 2022

Canada has avoided propagating the type of wildly inflated valuations that have become a Silicon Valley staple. We have achieved this feat by avoiding the types of businesses that U.S. venture investors disproportionately love: the so-called Uber-for-X companies. That talk is code for startups with fantasy unit economics, specious business models and no true plan for profitability. They focus on spending big to grow fast, while burning piles of investor cash to subsidize endless losses. In short, these are startups that can only grow when money is cheap when interest rates are at rock bottom.

Instead, Canadian venture investors have tended to favour startups with impressive unit economics.

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This is a Toronto Star article, co-written by OneEleven Managing Director Matthew Lombardi and Miller Thomson LLP Partner Myron Mallia-Dare. 

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