As someone who's worked as a Software Developer in Toronto for the past 13+ years, I totally disagree with this assessment.
First off, very few very early stage startups expect you to work for free until you get funded. Exceptions being that you're a co-founder or an unpaid intern that never touches code.
Secondly, while the startups in Toronto are probably less well funded than the ones in the US, not all require you to work for 12+ hours a day while paying you for 8 hours. It looks really shady to set these expectations especially since we have clear laws around overtime pay in Canada (describing such a work situation to friends will raise eyebrows -- definitely not the standard practice, whatever industry you work at).
Lastly, I'd say that any place worth working at (big or small) will be insanely picky about who they hire. Current employer included.
All of the above are from personal first hand experience. Of course I haven't worked for every single tech company in Toronto but I have worked for several (mainly early stage startups).