Tech pair built a $34M startup in Canada but are now moving it to California. Is the U.S. better for business?

Two Gen Z tech entrepreneurs founded a $34 million tech company in Canada only to leave for San Francisco to scale up their venture. Their reasons for leaving for the U.S. shed light onto Canada’s venture capital ecosystem’s weaknesses and where policy makers can begin to effect change.

Mai Trinh, an international business graduate from Simon Fraser University, and Gabriel Ravacci from Brazil, co-founded the tech startup Internet Backyard, which helps the computer economy with financial infrastructure through automated billing and financial software. Speaking with CTV News, Trinh cited two main reasons for relocating to the United States: complex visa requirements and a lack of funding.

Warren Buffett used these 4 solid, repeatable money rules to turn $9,800 into a $150B fortune. Here’s how to apply them to your own life

Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?

Tariffs have pushed up costs for Canadians last year — start 2026 strong with these 6 essential money moves

As an international student working with a Brazilian co-founder, Trinh noted how Canada’s Startup Visa wait time is 10 years, so they were working towards permanent residency. However, under Canada’s Comprehensive Ranking System, which uses points towards PR qualification, the duo needed to work for other employers while building their startup — an unsustainable option.

Anecdotally, Trinh also noticed that American investors have much deeper pockets, making it easier to raise funds. After incorporating in Delaware — a well-known tax-advantaged location to incorporate in the U.S. (2) — they raised US$4.5 million (C$6.1 million) while valued at US$25 million (C$34 million) in only one week. In contrast, the tech startup raised US$3 million (C$4 million) across all of Western Canada in the first quarter of 2025.

“You wake up one day, you realize your worth, and then you get out,” Trinh told the news outlet.

Unfortunately, Trinh and her co-founder aren’t the only Canadian tech founders leaving for better business conditions, which begs the question: Is the U.S. better suited for startups than Canada?

While the debate as to which country has the better framework for startups to captialize is highly nuanced, there’s an easy way to find clarity on where entrepreneurs prefer to build: startup data, which tells a troubling narrative.

Research from venture-capital firm Leaders Fund shows that since 2015, Canadian-based startups that raised $1 million or more have been steadily declining. In 2015, around 70% of startups were based in Canada. In 2024, that number sat at just over 32% (3).