Here’s something to celebrate: After a year of penny-pinching tied to high interest rates and economic uncertainty, money is flowing into Canadian technology companies again.
What happened: Legal technology company Clio set a new Canadian record for the most money raised by a technology company in a single funding round after a US$900 million deal valuing the company at $3 billion, making it one of the most valuable startups in the country.
Why it matters: This is the first record-breaking deal of its kind in Canada since 1Password raised $620 million during the pandemic-era boom in 2022, a sign that investors are ready to shake off the funding freeze and put money on profitable and growing firms.
- “We’re seeing a warming of the investment climate and a more optimistic view of what the next year and beyond holds,” Clio CEO Jack Newton told The Peak.
- He noted that Clio was founded during the 2008 global financial crisis, instilling the type of financial discipline you don’t see during easier times when funds are flowing.
Big picture: For years, Newton said Clio turned down offers from investors to help move to the U.S., adding that Canada is a great place to build a large technology company. Earlier this week, Toronto-based AI company Cohere also secured $500 million in funding.—SB