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Y Combinator website no longer lists Canada as a country it invests in

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Re: Y Combinator website no longer lists Canada as a country it invests in

#111

Post by Joel_Mckay »

sbarre wrote: post #33
alephnerd wrote: post #29

Earlier quoted context omitted.

> No Canadian VCs Pretty much. Israel [0], China [1], and increasingly India [2][3] worked on resolving this issue by establishing funds of funds that partnered with private sector players by matching dollar-to-dollar with them to help build a VC ecosystem. It's the same problem in the EU as well despite ECB proclamations. Heck, Norway's (ik not EU, it's EFTA) PIF has been conspicuously absent from any sort of statme…

I think our biggest problem in Canada is total addressable market is small.. We're 40M people (compared to what, 350M in the US, and 900M in the EU), and we're directly next door to the largest startup economy in the world. So not only do we have fewer customers, we're competing against an economic juggernaut that shares our broad business rules, our culture and language (with one exception) and can market to us thro…

There are a lot of "odd" things that happen to non-US citizens businesses that no one likes to talk about in public.

Indeed, if you are a Canadian Business getting market traction: the common scenario is acquisition by a US firm, or utter destruction by policy shifts and replacement by an opportunistic competitor. =3

Re: Y Combinator website no longer lists Canada as a country it invests in

#112

Post by Joel_Mckay »

Yeroc wrote: post #61
motohagiography wrote: post #53

Whether it's significant or not, YC's basic model of seed funding with ~$100k could be reproduced in Canada with $10MM or less. Unsure how this is a problem. If Canada wanted to be serious about startups it could make trivial changes to enable it. However it's committed to becoming a dutch diseased resource colony with no value add and a macquiladora for US software companies. Relative to capital and assets, it's the…

What are the trivial changes Canada could make if it wanted to be serious about startups?

Canada could risk 1:22 odds of a startup return, or get near certain double digit growth from real-estate, and revenue-property holdings.

People are just far too risk-averse up north to actually properly fund a real startup. =3

Re: Y Combinator website no longer lists Canada as a country it invests in

#113

Post by bpye »

motohagiography wrote: post #73
Yeroc wrote: post #61

Earlier quoted context omitted.

What are the trivial changes Canada could make if it wanted to be serious about startups?

briefly: cap gains reductions. at will employment. competitive top line corporate rates that attract HQ's and IP the way Ireland did. reduce the public sector talent tarpit, tariff goods from countries that use slave labor. abolish the dairy, wheat, and syrup boards and other agriculture cartels. enforce money laundering laws against retail businesses to normalize commercial rents. reduce immigration to levels where…

> if you talk to anyone in canada who is from here and doesn't work in the public sector, the conversation quickly turns to whether they're planning to leave and how far along they are. the way it's going, they're going to have to bar the exits.

It sounds like that is just your bubble. I live in Vancouver, BC, and am a Canadian citizen. Yes, lots of people agree that things could be (and should be!) better - but I don't know many folks that are actively planning to leave.

Re: Y Combinator website no longer lists Canada as a country it invests in

#114

Post by mlrtime »

anon291 wrote: post #86
ooooppppppp wrote: post #45

Earlier quoted context omitted.

Attractiveness to talent? Fairly senior dev, US citizen here (20 years experience). After what I've seen this past year, but more the past month, I will work for peanuts for a path to citizenship in Canada. US in 5 years is not a place I want to be, looking into all options and very serious.

It is difficult to take anyone worried about the US seriously when their solution to protect themselves is to move to Canada. Not saying anyone's right or wrong but the idea that, should America go psycho, Canada would somehow be okay is a pipe dream. Canada is essentially an outpost of the United States. Yes, I have Canadian family (even old stock "Loyalist" Canadian family) and they all feel the same way. People ne…

Let them have their opinion, the number is so small it's meaningless.

People have been saying they are moving to Canada for decades due to whatever recent events, statistics say otherwise.

Re: Y Combinator website no longer lists Canada as a country it invests in

#115

Post by pjjpo »

Interesting - I was surprised to see a note on Wefunder, though the opposite direction that Canada residents aren't allowed to use the platform to invest. For context, no problem from Japan.

It sounds like Canada has some unique regulations here, wouldn't have expected that.

Re: Y Combinator website no longer lists Canada as a country it invests in

#116

Post by newlifehelp »

Joel_Mckay wrote: post #109
Roscius wrote: post #84

Earlier quoted context omitted.

Live in Canada and work remotely into the US. Been doing it for the last 6 years...

Or be a digital nomad in a tropical paradise, and avoid the 46% income-tax rate. Depends how secure your position is I guess... =3

It's not just about the tax rate; make sure you properly understand the residency requirements and where your tax domicile will actually be. Many "digital nomad" visas still have an income threshold or require proof of foreign income, so double-check the fine print.

When you're ready to seriously explore options, NewLife.Help (https://newlife.help) has a solid Move Planner and an excellent cost-of-living comparison tool that can help you weigh different paradises against each other.

Re: Y Combinator website no longer lists Canada as a country it invests in

#117

Post by am3141 »

compiledkoala wrote: post #91
throwup238 wrote: post #70

This whole move is about corporate governance. The US makes it really easy to start or manage corporations and the courts are (mostly) streamlined and predictable, especially the chancery courts in Delaware. Cayman Islands adopted much of Delaware's legal approach to corporations in 2016 to make the island more business friendly rather than just a tax haven, and they've got a foot in the Latin American market. Singap…

This exactly. Canadian common law has some very odd implications for corporate governance. Much higher risk of governance deadlock due to recent rulings. VCs are not going to know that when evaluating a company. YC as the incubator and the first check in has an obligation to vet the situation for future investors. The easiest way for them to do that at scale is to ensure they are experts in a very small number of jur…

This is simply not true. Canadian founders lose massive Canadian tax benefits by incorporating in the US. The only way out of further tax complications (and it’s not because of Canada, it’s just how international tax laws work) the founders have to permanently move to the US. Source: I have founded both Delaware and Canada federal co.

Re: Y Combinator website no longer lists Canada as a country it invests in

#118

Post by am3141 »

1attice wrote: post #40
gucci-on-fleek wrote: post #39

Earlier quoted context omitted.

Much like the US, the regulations and culture varies depending on which province (state) you're in, so someone starting a business in Alberta could have a very different experience than someone in Ontario.

Somewhat. Our provinces have fewer rights, powers and responsibilities than US states. The experience is more homogenous. It's only a nightmare if you hate all taxes and labour rights. So, you know, YC

What labor laws are you encountering with a 10 person software company in Canada?

Re: Y Combinator website no longer lists Canada as a country it invests in

#119

Post by am3141 »

garbawarb wrote: post #5

> “It’s the Valley-or-bust mentality that breaks the ecosystem and really hurts Canada,” Gomez said. Canadian pride isn't enough to keep a company in Canada. There are real and significant economic incentives to move elsewhere. That said, it's disappointing that YC no longer supports Canadian companies.

Well it’s the USA / Valley pride what built that ecosystem there. It wasn’t always like that even in the US. A long time ago, the US congress had to pass a law to incorporate a company. It went from there to whats its now because of that pride. We want that pride here in Canada to build our own ecosystem.

Re: Y Combinator website no longer lists Canada as a country it invests in

#120

Post by Joel_Mckay »

newlifehelp wrote: post #116
Joel_Mckay wrote: post #109

Earlier quoted context omitted.

Or be a digital nomad in a tropical paradise, and avoid the 46% income-tax rate. Depends how secure your position is I guess... =3

It's not just about the tax rate; make sure you properly understand the residency requirements and where your tax domicile will actually be. Many "digital nomad" visas still have an income threshold or require proof of foreign income, so double-check the fine print. When you're ready to seriously explore options, NewLife.Help ( https://newlife.help ) has a solid Move Planner and an excellent cost-of-living comparison…

Canada taxes on residency, and not citizenship. The number of days in the country directly affects your tax obligations.

If you are a dual US/Canadian citizen, than you may still be expected to file a US return or face fines. Similarly, if your business sells products or services to US customers there are transactional and fiscal state-specific grace levels than can trip tax obligations.

Best of luck =3

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