Like John Hughes in the ’80s, Canada’s tech industry is writing its own coming-of-age story.
What happened: Toronto-based startup StackAdapt raised US$235 million in a deal that values the AI-powered digital advertising platform at around $2.5 billion. The company is seen as one of the most profitable private technology firms in the country.
Why it matters: StackAdapt is part of a growing group of successful Canadian startups. According to an analysis by the Globe and Mail, 71 Canadian private technology companies have over $100 million in annual revenue — a major threshold for sustainability.
- Companies like Hopper and Wealthsimple have blossomed in Canada, and many are primed to go public in the coming years at potentially huge valuations.
- That’s a night-and-day change from about 12 years ago when Canada’s lone tech titan, BlackBerry, was on the decline, and later-stage startups were struggling to raise any money.
Big picture: Canada’s tech industry is becoming a bigger part of the economic picture. In 2012, tech stocks made up just 1.6% of the TSX. That number’s already up to 10%, and with a slew of quality homegrown startups now coming of age, it’s likely to keep growing.—LA