With its diverse landscapes and multicultural heritage, Canada is quickly becoming a key player in the global startup ecosystem. Major cities like Toronto, Vancouver, and Montreal are thriving hubs for startups, housing a significant proportion of the country's entrepreneurial activity. In 2021 alone, Canadian startups raised CAD 6.3 billion, and this trend of increasing investment has continued into 2024. The Canadian government has also implemented numerous initiatives to create a supportive environment for startups, aiming to diversify the economy beyond traditional sectors like natural resources and manufacturing.
Investment in Canadian startups has grown significantly, with substantial contributions from domestic and international venture capital firms. Top startups in Canada are making strides in various fields, including fintech, health tech, AI, and clean technology. Government support through grants, tax incentives, and funding programs further encourages innovation and alleviates the financial pressures on emerging companies.
Canada's startup ecosystem is distinguished by its global perspective. Many Canadian startups are expanding their operations internationally, leveraging the country's strategic advantages and technological expertise. The presence of international founders and the increasing number of Canadian startups gaining traction in foreign markets highlight the country's competitive edge. This global orientation is propelling Canadian startups to scale quickly and compete globally. Let's look at some of the top Canadian startups to watch for in 2024.
1. Neo Financial
Year Founded: 2019
HQ: Calgary, Alberta
Size: 200+
Founders: Andrew Chau, Chris Simair, Kris Read, and Jeff Adamson
Neo Financial is a fintech startup launched by the founders of SkipTheDishes. It wants to transform the traditional banking landscape in Canada by offering innovative financial products through a fully digital platform. It provides high-interest savings accounts, cash-back credit cards, and various financial services.
Neo Financial has amassed over one million customers and partnered with over 7,000 retailers across Canada. Despite the stiff competition from traditional banks and other fintech companies, Neo Financial continues to expand its product offerings. It plans to introduce mortgage products and expand into Québec later this year. With a growing team of over 650 employees, Neo Financial is well-positioned to challenge the dominance of Canada's Big Five banks by leveraging digital innovation and customer-centric services.
Neo Financial's recent $235.8 million Series C funding round, led by Peter Thiel's Valar Ventures, has catapulted the company to unicorn status, with a valuation exceeding $1 billion.
2. WOMBO.ai
Year Founded: 2020
HQ: Toronto
Size: 1-50
Founders: Ben-Zion Benkhin
WOMBO.ai is one of the Canadian startups that has significantly impacted the AI-driven app space with its innovative and viral applications. Initially gaining widespread attention with its lip-syncing app, WOMBO quickly became known for its creative use of artificial intelligence to generate entertaining content. Its first app went viral in 2021, achieving 25 million downloads within three weeks of its launch. Following this success, WOMBO released "Dream," an AI art generator that supports 5.2 million monthly active users. Its ability to rapidly develop and deploy applications using AWS services has been critical in managing the app's scalability and performance demand.
WOMBO's latest venture, WOMBO Me, focuses on transforming selfies into lifelike AI-generated avatars. This app stands out in the competitive AI avatar market by offering a smooth and engaging user experience. Users can create a variety of avatars, including professional headshots and playful characters, which can be shared on social media and used on platforms like LinkedIn and Tinder. It has raised $9.5 million from 5 investors in 2022.
3. Railz
Year Founded: 2020
HQ: Toronto
Size: 51-200
Founders: Sohaib Zahid and Derek Manuge
Railz is one of the many Canadian startups in the fintech industry. It has established itself as a provider of financial data connectivity for small and medium-sized businesses (SMBs). Through its comprehensive API platform, Railz offers real-time access to normalized accounting, banking, and commerce data. This service allows financial institutions, fintech companies, and other stakeholders to retrieve, analyze, and utilize SMB financial data. It helps users make informed lending and financial decisions.
Railz's innovative approach has attracted significant investment from prominent venture capital firms such as Nyca Partners, Susa Ventures, and Vestigo Ventures. Railz has seen substantial growth and success since its inception, raising $15.1 million in funding. This capital will expand Railz's product offerings, including developing Railz Connect™ and Railz Analytics™. These solutions aim to improve the accessibility and usability of financial data for clients. The funding will also support the company's growth initiatives, including increasing its workforce and expanding its market presence.
4. Cohere
Year Founded: 2019
HQ: Toronto
Size: 200+
Founders: Aidan Gomez, Nick Frosst, and Ivan Zhang
Cohere focuses on developing AI models for enterprise efficiency. Unlike other companies aiming for human-like intelligence, Cohere builds practical foundation models that help automate business systems and support employees. Its recent AI model, Command R+, can perform generative AI business tasks like summarizing and analyzing text. It supports multilingual capabilities in ten languages, including English, French, and Japanese. Cohere's technology is used across various industries, including finance, technology, and retail, to improve data interaction and simplify complex tasks for non-technical users.
In 2024, Cohere secured $500 million in funding at a valuation of $5.5 billion, bringing its total funding to $934.9 million. The investment will be used to further develop and fine-tune its large language models (LLMs), expand its multilingual capabilities, and create specialized models for regulated industries such as finance, healthcare, and government. A recent partnership with Fujitsu exemplifies its commitment to innovation, focusing on developing LLMs with Japanese language capabilities.
5. Rocket Doctor
Year Founded: 2020
HQ: Toronto
Size: 1-50
Founders: Dr. William Cherniak
Rocket Doctor is a telehealth startup that aims to provide access to healthcare by offering virtual medical consultations. It provides a platform where patients can consult with doctors and other healthcare professionals via video or phone, covering a range of services from primary care to specialist consultations. It is designed to address the growing demand for flexible and accessible healthcare options, particularly in remote or underserved areas. Rocket Doctor offers services that include diagnosis, treatment, prescriptions, lab requisitions, and referrals to specialists.
In terms of funding, Rocket Doctor has successfully raised over $3.8 million in its seed. The money will be used to expand its service offerings and technological capabilities, enhancing its artificial intelligence (AI) and machine learning (ML) capabilities to improve patient outcomes. It plans to use this capital to scale its operations across Canada and enter new markets.
6. Ledn
Year Founded: 2018
HQ: Toronto
Size: 51-200
Founders: Adam Reeds and Mauricio Di Bartolomeo
Ledn is a Canadian startup focused on cryptocurrency lending. It aims to provide transparent and secure financial services by focusing on Bitcoin and USDC. It stands out by offering Proof-of-Reserves attestations, conducted every six months, which ensure that client assets are accounted for properly. This transparency is crucial in the volatile crypto market and has set Ledn apart from less scrupulous competitors.
Ledn has collaborated proactively with Canadian regulators to develop a compliant service pathway, adapting its product range to meet regulatory requirements while maintaining a strong focus on security and transparency. Recently, Ledn raised $103.9 million in a Series B funding round. This capital will be used to improve its product offerings, including the launch of Bitcoin-backed mortgages, and to explore merger and acquisition opportunities.
7. Delphia
Year Founded: 2018
HQ: Toronto
Size: 1-50
Founders: Andrew Peek
Delphia is among the few Canadian startups using artificial intelligence (AI) to provide data-driven investment strategies. Delphia integrates consumer spending insights, employment patterns, and social media public opinion data to forecast publicly traded companies' growth and profitability. This approach aims to democratize investment opportunities. It provides retail investors with tools and insights previously reserved for top-performing hedge funds. In December 2022, Delphia acquired Fathom Privacy to improve data transparency and user control.
Delphia has raised significant funding, including a $79.5 million all-equity Series A round in early 2023. Multicoin Capital led this round with participation from notable investors such as FTX Ventures and M13. The funding is being utilized to further develop Delphia's AI-driven investment platform and expand its capabilities. This expansion includes integrating Fathom Privacy's technology, which will improve data sharing and increase user engagement through innovative reward systems like the PHI token program.
8. Relay
Year Founded: 2018
HQ: Toronto
Size: 51-200
Founders: Yoseph West and Paul Klicnik
Relay is another Canadian startup in the fintech industry. It offers an online banking and money management platform for small businesses. Relay provides various services, including business checking, savings accounts with competitive APY, receipt management, and integrations with accounting software like QuickBooks and Xero. With features like multiple checking accounts, virtual and physical Visa debit cards, and automated transfers, Relay aims to give businesses complete control over their cash flow.
In 2023, Relay secured $15 million in Series A funding, which was earmarked for expanding its product offerings and improving its customer experience. It gained a total of $51.6 million to date. The funding is being utilized to develop new features that cater to the evolving needs of SMEs, such as advanced reporting tools and integrations with popular accounting software.
9. Odaia
Year Founded: 2018
HQ: Toronto
Size: 200+
Founders: Philip Poulidis and Helen Kontozopoulos
Odaia is one of the few Canadian startups leveraging artificial intelligence and machine learning to transform the pharmaceutical industry by streamlining the drug delivery process. Founded in 2018 as a spin-out from the University of Toronto, Odaia has developed a platform that automates data collection and analysis from diverse sources like medical records, demographic data, and economic information. The data collection allows pharma companies to gain real-time commercial insights, significantly improving their sales and marketing strategies. Odaia has attracted significant clients, including Janssen, Novo Nordisk, and AstraZeneca.
In April 2024, Odaia raised $34 million in a Series B funding round, bringing its total funding to approximately $43.3 million. This investment, led by Threshold and Monograph, aims to improve the startup's go-to-market efforts by expanding its sales and customer support teams and adding technical talent for further platform development. The funding will also support Odaia's expansion in North America and internationally.
10. Swyft
Year Founded: 2020
HQ: Toronto
Size: 1-50
Founders: Karan Kundra, Aadil Kazmi, Maraz Rahman, Zeeshan Hamid, and David Ang
Swyft is among the few Canadian startups focusing on same-day delivery for eCommerce and retail brands. By providing seamless integration with platforms like Shopify through easy-to-use plugins and APIs, Swyft allows businesses to offer affordable same-day delivery options to their customers. Its software-only platform connects merchants with local couriers and 3PLs, ensuring swift and efficient delivery services. Some notable brands using Swyft include Lush, Knix, and Mejuri.
In a $20 million Series A funding round led by Inovia and Shopify, Swyft aims to improve its sales and marketing efforts and expand its service offerings. Its unique zero-asset business model focuses on increasing the utilization of existing courier and delivery networks. It provides a cost-effective alternative to traditional shipping methods. Swyft sets a new standard in last-mile logistics, helping merchants meet growing customer expectations for speedy deliveries.
11. Newton.co
Year Founded: 2018
HQ: Toronto
Size: 51-200
Founders: Dustin Walper, Erynn Saunders, and Tyson Leslie
Newton.co is one of the many Canadian startups in the cryptocurrency field. It offers users a smooth way to buy, sell, and trade digital assets. Known for its user-friendly interface, Newton.co provides features such as no-fee trading, competitive spreads, and instant verification, making it accessible for beginners and experienced traders.
Newton.co supports a wide range of cryptocurrencies and boasts a unique set of security measures, including multi-signature wallets and advanced encryption protocols, to ensure the safety of user funds. Newton. co's integration with Interac e-Transfer and bank wire services facilitates quick and convenient transactions.
Regarding funding, Newton.co has raised significant capital to fuel its growth and development. The startup recently secured $34.7 million in a Series A funding round. This influx of funds will be used to expand Newton. co's team, improve its technological infrastructure, and introduce new features. The funding will allow Newton.co to scale its operations within Canada and potentially into international markets.
12. Field Trip Health
Year Founded: 2019
HQ: Montreal
Size: 51-200
Founders: Mujeeb Jafferi
Field Trip Health is a Canadian startup focusing on mental health innovation. It specializes in the therapeutic use of psychedelics. It operates a network of clinics that offer guided psychedelic-assisted therapies designed to help individuals address mental health conditions such as depression, anxiety, PTSD, and other mood disorders. Utilizing substances like ketamine, Field Trip Health combines these treatments with integrative psychotherapies to promote profound healing experiences.
Field Trip Health has raised substantial funds through multiple funding rounds, including a $112 million Series C financing. This capital is being strategically allocated to expand its network of clinics across North America and Europe and invest in research and development of new psychedelic therapies. With this funding, Field Trip Health aims to make psychedelic therapy more accessible and to continue pioneering advancements in mental health treatment.
13. Agnostiq
Year Founded: 2018
HQ: Toronto
Size: 1-50
Founders: Elliot MacGowan
Agnostiq is focused on developing software tools designed to improve quantum computing capabilities. Agnostiq's flagship product, Covalent, is an open-source workflow orchestration platform that simplifies the process of building, deploying, and managing quantum computing tasks. It allows seamless integration with various quantum hardware and software providers. Its solutions are precious for finance, pharmaceuticals, and logistics industries.
Agnostiq closed a $11.9 million Seed funding round. This funding will accelerate product development, expand its engineering and research teams, and enhance its go-to-market strategy. The investment supports Agnostiq's efforts to forge strategic partnerships with quantum hardware providers and enterprise customers.
14. Shoplazza
Year Founded: 2017
HQ: Toronto
Size: 200+
Founders: Jeff Li
Shoplazza is an e-commerce platform that empowers businesses of all sizes to easily create, manage, and scale their online stores. Offering a comprehensive suite of tools, Shoplazza provides everything from website design and customization to inventory management, marketing, and payment processing. Its platform allows merchants to set up online stores quickly without extensive technical knowledge.
One of Shoplazza's unique features is its robust analytics and reporting tools, which provide valuable insights into customer behavior and sales performance. Shoplazza supports multi-channel selling, allowing merchants to seamlessly reach customers across various online marketplaces and social media platforms. It recently raised $150 million in a Series C funding round. The money will be used to expand its user base. Part of the funding is allocated towards developing new features and integrations that cater to the evolving needs of online merchants.
15. Pine
Year Founded: 2018
HQ: Toronto
Size: 200+
Founders: Anshul Ruparell, Sheldon McCormick, and Craig Dunk
Pine(formerly known as Properly) is a Canadian real estate technology company transforming the home-buying and selling experience. Pine simplifies the traditionally complex real estate process by offering a hassle-free, customer-centric approach. It provides home-buying, selling, and mortgage solutions, leveraging technology to streamline transactions.
Pine's standout feature is its Instant Sale service, which allows homeowners to receive an immediate offer on their property. Pine offers a Sale Assurance program, which guarantees the sale of a new home before the old one is sold, providing sellers peace of mind. It also provides comprehensive market data and personalized support from real estate experts to help clients make informed decisions. Pine has successfully secured 202 million CAD ($151.5 million) in a Series B funding round. This capital injection is being used to expand Pine’s market presence across Canada.
FAQs
What are the strongest industries in Canada?
The strongest industries in Canada include real estate, manufacturing, natural resources (oil and gas), healthcare, and technology. These sectors are pivotal to the nation's economic stability and growth. Other significant sectors are finance and insurance, retail trade, and construction.
What is the average investment in the startup industry in Canada?
The average investment in Canadian startups varies, with early-stage funding averaging around CAD 3 million. Later-stage investments can be significantly higher, reflecting Canada's robust venture capital landscape.
How many startups are there in Canada?
Canada is home to approximately 3,000 startups. Its thriving startup scene ranks fourth in the competitive global top 10 and has 46 locations among the top 1000.
How fast is the startup industry growing in Canada?
Over the last five years, Canada's startup sector has expanded by 23%, significantly outpacing the growth rate of the overall Canadian economy during the same timeframe. The rapid advancement of the Toronto-Waterloo Region Corridor further corroborates the growth of Canadian startups, as it has become the largest technology hub in North America.
