Hub Podcasts Canada's brain drain crisis: Why tech startups are fleeing
Sep 24, 2025
Lucy Hargreaves, co-founder and CEO of Build Canada, highlights a troubling trend: Canadian tech startups are fleeing the country. She delves into the pressing issues driving this exodus, including regulatory red tape and uncompetitive capital gains policies compared to the U.S. Hargreaves emphasizes the need for bold changes over 'safe incrementalism' to retain talent. She also discusses cultural barriers to risk-taking that hinder entrepreneurship in Canada, while maintaining that there is still potential for growth within the country.
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Sharp Decline In Canadian Startup Headquarters
- The number of Canadian-founded, Canadian-headquartered startups has dropped sharply since the pandemic. This decline signals a broader wake-up call for Canada's growth strategy.
Structural Frictions Push Founders Abroad
- Founders are leaving not by choice but because Canada makes scaling harder through red tape, capital limits, and slow policy. These structural frictions push entrepreneurs to relocate where conditions are friendlier.
Choose Bold Nation-Building Policies
- Give entrepreneurs a fair shot by cutting needless barriers and choosing bolder nation-building policies over safe incrementalism. Act decisively to unlock land, talent and energy already present in Canada.