From Tesla to OpenAI, from Uber to Anthropic, many well-known technology companies in Silicon Valley have the presence of Canadian talents behind them. The latest data shows that at least 517 tech companies based in the United States were founded by Canadians or entrepreneurs who were educated in Canada, with a total funding amount exceeding $400 billion.
Analysts believe that Canada is facing a brain drain in the tech talent sector, as many individuals choose Silicon Valley due to the larger investment capital, market size, and talent network available there.
According to a report by the National Post, data compiled by Jessie Rodgers, a tech investor from Waterloo, shows a significant increase in the number of Canadian entrepreneurs heading to the US in recent years. Before 2023, there were roughly 20 to 30 individuals per year, which then rose to 60 in 2023 and further increased to 93 in 2024.
Lucy Hargreaves, the CEO and co-founder of the business advocacy organization Build Canada, stated that Canada is witnessing the loss of “one of its most valuable resources” and described this phenomenon as a “Level 5 alarm.” She warned that the long-term cumulative effects of talent outflow may impact the Canadian economy.
Data from Dominion List indicates that among these entrepreneurs who moved to the US, a staggering 88% received their education at Canadian universities. Among them, 216 individuals have an educational background from the University of Waterloo, involving 180 US-based companies with a total funding of approximately $311 billion, and 115 companies are located in San Francisco. Entrepreneurs with ties to the University of Waterloo make up over 40% of the founders, significantly higher than other institutions.
Other top universities have also produced numerous talents: the University of Toronto with 118 individuals, McGill University with 67, the University of British Columbia (UBC) with 48, Queen’s University with 40, and the University of Western Ontario with 19.
These talents include globally renowned tech leaders. For instance, Ilya Sutskever, co-founder of OpenAI, graduated from the University of Toronto; Chris Olah, who studied at the University of Toronto, later joined the American AI giant Anthropic; Jeff Skoll, the first president of eBay, is also an alumnus of the University of Toronto; and Tesla CEO Elon Musk attended Queen’s University and holds Canadian citizenship. Additionally, Garrett Camp, the co-founder of Uber, grew up in Calgary.
The resurgence of this topic coincides with Canadian Finance Minister François-Philippe Champagne seeking public input on tax reforms in preparation for the federal budget in the fall, while Ottawa is exploring ways to reduce economic dependence on the US due to the threat of tariffs.
Various opinions exist regarding the reasons for this talent outflow. Many believe it stems from the significantly larger investor base south of the border in the US, particularly in hubs like New York and Silicon Valley, which can provide funding on a scale that Canada struggles to match. Others point to Canada’s lack of sufficient pro-business policies to offset its relative size disadvantage compared to the US.
Hargreaves suggests that increasing capital gains tax incentives or lowering income taxes for high earners may help retain entrepreneurs, but she emphasizes that addressing this issue will require a more comprehensive policy response.
Conservative Party leader Pierre Poilievre partly blames Prime Minister Mark Carney, claiming that Carney “has driven entrepreneurs out of Canada with taxes, red tape, and inflation,” and questioning his “transferring subsidies and relief funds to insiders in the business community.”
Andre Charoo, Managing Director of Maple VC, a venture capital fund in San Francisco, believes that the main reason Canadian entrepreneurs move to the US is often simply to network with other successful individuals. He noted that while Canada has its share of domestic success stories, it lacks the extreme density of talent where everyone wants to build the next billion-dollar company.
“We have nurtured some of the most ambitious people in the world… but ambitious people want to be around others who share that ambition,” Charoo stated.
Charoo was involved in the establishment of Uber’s Canadian division. He himself graduated from the University of Toronto and moved to California in the early 2000s to seize development opportunities. According to Dominion List data, he is not alone—in these 517 US companies founded by Canadians, 287 have their headquarters in San Francisco, leading all cities, followed by 61 in New York.