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Comment by guiolo | Hacker News Reader

> Canadian tech companies love to complain about lack of talent, but they're not willing to pay for it [...]

They most likely to a large extent can't. It's just a different model both as comapnies and country. In general you can rarely win by being a lesser version of something else. Canada can, hopefully, do a lot of things the US can't. Those are the things it should do to attract people.

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I think it's more a case of VCs not being calibrated to the real cost of doing business. Canada is a first world country with a GDP per capita not much less than the states. There is plenty of wealth available that could be invested in tech. It's just Bay Street generally doesn't want to, because they don't understand the tech business.

Name one prominent Canadian VC firm - I can't think of any, and I'm Canadian. But ask me about US firms, and I can name firms like Sequioa, a16z, and BVP. We don't have that here.

It's been suggested to me that because of Canada's long history of a resource-based economy, Canadian investors are far more accustomed to the long, slow model of: let's research a site for several years, make sure it'll be profitable, build a town, and get to work. The higher risk, fail-fast nature of VC investing is just too foreign to their business model.

One of the problems is the public demands a lower risk investment. A single Theranos would knee cap the entire VC industry in Canada. "How could this be allowed to happen?!" The stories of LPs losing their $50k investments would lead the newspapers for months.

In Silicon Valley its a, 'Oh that sucks, but the smart money stayed away, that should have been a tell for the other investors".

That already happened, to a degree. Canada's dot-com darling was Nortel, which at peak accounted for 1/3 of the total valuation on the Toronto Stock Exchange.

Then the bubble burst and Nortel collapsed. A lot of institutional investors swore off tech after that, and it hasn't really rebounded.

Nortel was an actual fraud though, as well as collapsing as a company. Changing financial reporting rules could prevent another Nortel-style fraud.

Agreed! But that wasn't the message that Bay Street took from it.

And all of the tech was siphoned away by Chinese spies!

Canada's main attraction is the social services and basicaly guaranteed citizenship. The US's main attraction is money and technical opportunities and also some vague promise of a green card.

If you were not born in China or India, then getting a green card isn't a vague promise. Go work at google, try to get an H1B or L1 ASAP and then get your green card in 1-2 years after that.

Given that much more Chinese and Indians still prefer US to Canada, further and further elongating the lines for green card, it seems the Canadian advantage is not so enticing after all.

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