Canada is becoming one of the best destinations for tech innovation and research, Top cities like Toronto, Montreal, and Ottawa are taking the lead in newer tech startups, and creativity. Toronto’s tech environment was reported booming back in 2021 and 2022. From 2021 to 2023, Toronto—the biggest city in Canada—saw a tremendous tech boom, propelled by a mix of variables including innovation, talent pool, and top firms like Amazon and Google.
A large number of highly qualified IT workers have relocated to Toronto from other cities, thanks to the city’s abundance of prestigious educational institutions.
The number of computer workers residing in Toronto increased by 26% between 2021 and 2022, with over 300,000 people now calling the city home, according to a survey by CBRE. Startups in Canada have also begun to call Toronto home. There has been a proliferation of new businesses, with many of them specializing in cutting-edge tech like AI, ML, and cybersecurity. Over 1,500 businesses have set up shop in Toronto since 2022, a 22% increase from 2021, according to data compiled by Startup Canada. Let’s the tech progress in Toronto and what the future of tech would be like.
Tech Investments in Toronto
During the pandemic in 2021-2022, Toronto experienced a significant rise in capital investment in the technology industry, with both local and foreign investors pouring money into the city’s startups and corporations. According to PitchBook research, the city’s venture capital investment in the technology business increased by 37% in 2022, totaling more than $2.5 billion. This growth may be attributed to a variety of factors, including Toronto’s strong talent pool, government help, innovation, and diversification of IT businesses. Several Silicon Valley titans, including Amazon, Pinterest, Apple, Meta, and others, have established offices and made investments in Toronto’s downtown core, close to one another.
Several significant investments have propelled Toronto’s tech sector, including Shopify’s $400 million acquisition of Checkout 51 in 2021, Wave’s $100 million series C funding round in 2022, Clearco’s $200 million series B funding round in 2022, and Ziff Davis’ $500 million acquisition of Apptopia.
Almost half (46.2%) of all investment money earned in Canadian digital startups went to Ontario-based enterprises, with Toronto and Waterloo-based companies collecting $1.8 billion and $360.6 million, respectively. In 2023, ThinkData Works raised $50 million in Series A funding, SavvyMoney raised $30 million in Series B funding, Bridgit, a Toronto-based company, raised $20 million in Series B funding, and Zinc was acquired by US-based SAP for $200 million. Toronto is a top tech destination despite having lower income and investment in the field than other cities, as seen by the trend from 2021.
These investments have helped Toronto establish itself as a major player in the global tech scene while also benefiting the local tech sector.
Tech Startups Companies Booming in Toronto
Tech startups in Toronto are not only securing significant funding, but they are also growing rapidly and helping to drive the growth of the city’s tech environment. By providing innovative solutions to everyday problems, they are making a real impact on the way we live, work, and play.
1. Blackcart
Based in Toronto, Blackcart is a company that has so far raised $2.5 million. Since its founding in 2017, Blackcart has grown quickly, with revenues rising by 500% in the past 12 months alone. Customers can now browse and buy products from their favorite businesses in one place thanks to the company’s virtual storefront technology, which is redefining online shopping.
2. MyCaribou
myCaribou is a mobile app that allows users to order and pay for coffee and other items from participating cafes using their smartphones. The company has secured $1.5 million in funding and has seen considerable growth, with revenues up 200% in the past year. Our ordering and payment processes for coffee are being revolutionized with myCaribou, making it simpler and more convenient than ever.
3. Barley
Barley is a mobile app that allows users to order and pay for craft beer and other beverages from participating breweries and bars. With a 150% increase in sales over the previous year, the company has developed tremendously and has received $1.2 million in cash. To support the expansion of the craft beer industry in Toronto and beyond, Barley is attempting to connect beer enthusiasts with nearby breweries and bars.
4. Shopley
Shopley is an internet store that connects consumers with regional companies and artists so they can purchase one-of-a-kind and handmade goods. The company has raised $500,000 and has been growing rapidly, as evidenced by a 50% increase in revenues in the previous year. Shopley provides a distinctive and personalized shopping experience for its clients, which helps local businesses and artisans flourish.
5. Lancey
Lancey is a mobile app that allows users to order and pay for laundry and dry cleaning services using their smartphone. The company has secured $750,000 in funding and has been growing rapidly. Also, as evidenced by a 200% increase in sales in the previous year. Additionally, customers can now order and pay for services while on the go. This makes washing easier and more convenient than ever.
Future Progress in the Toronto Tech Industry
The IT sector in Toronto is predicted to make substantial progress in a variety of sectors. Investments in machine learning (ML) and artificial intelligence (AI) are increasing, notably in retail, banking, and healthcare. The increasing usage of technology in daily life has raised the necessity of cybersecurity. As digital payments become more extensively utilized, we expect fintech to expand. Predictors anticipate a substantial growth in health technology to cater to the requirements of an aging population.
As technology innovations are applied in industries such as entertainment, healthcare, and education. Also, the number of virtual and augmented reality (VR/AR) firms is growing. With the increasing popularity of online shopping, e-commerce is likely to develop. Startups in the mobility and transportation arena, with a focus on electric and driverless automobiles. Also, non-traditional modes of transportation such as walking and biking, may get funding. When taken together, these trends speak to a bright and diverse future for Toronto’s IT sector. Cementing its position as a significant hub for the sector globally.
