When people rattle off the big North American cities in conversation, they tend to start with New York, Los Angeles, Houston, maybe Chicago. But if you move the needle just a few parallels north, above the Canadian border, you find another contender - Toronto, an often-overlooked city firmly on the rise. The population of Toronto is roughly on par with Chicago, and the city bests them all in terms of diversity and (arguably) public infrastructure.
Startups are certainly starting to take note. The city is home to thousands of enterprising, innovative entrepreneurs looking to build the next market-smashing success. And more entrepreneurs flock there with each passing year.
What is it about Toronto that attracts so many startups? In this post, let's explore this up-and-coming global city and its influence on the tech startup scene.
People Power: The Diverse Talent Pool
As mentioned in the introduction, Toronto is a very diverse city. The most diverse city in the world, according to some experts.
Because recent immigration accounts for the bulk of Toronto's diversity, the city's population skews young. It also skews heavily toward foreign intellectuals and innovators looking for a permanent home in the west. In other words: Toronto is the beneficiary of "brain gain" or "human capital flight."
Consequently, the city is flush with highly skilled developers, designers, engineers and dreamers.
Cost Savings: A (Relatively) Inexpensive Global City
No one who actually lives in Toronto thinks of Toronto as affordable. But compared to other alpha-level "world cities," like London, New York, Tokyo and LA, Toronto is relatively inexpensive.
This relative affordability has made it a natural fit for big tech companies like Google, Uber and Microsoft, each of which has central offices in the city. But Toronto's mixture of low costs and high visibility also makes it attractive to startups.
Bona Fides: The Momentum from Other Successful Startups
You can't overlook the impact momentum has on creating a buzzy atmosphere. Silicon Valley started with just a couple of success stories before ballooning into the tastemaker it is today.
Toronto still has a way to go before it produces the next Apple, but it's doing some amazing things. Notably, Toronto is home to Nobul, a real estate tech startup on an incredibly hot streak. The disruptive company recently crossed the $7 billion sales threshold and has gained significant traction from investors. "We are seeing a huge increase in the use of our platform," CEO Regan McGee tells Superb Crew. "The future is bright."
It's possible that the spate of new Toronto startups is following the successes of companies like Nobul.
A Nurturing Environment: Tax Credits, Accelerators and Incubators
Toronto is good to its innovators and dreamers, offering tax credits, federal financial incentives and several accelerators and incubators.
This is by design. For several years, the city has actively courted tech thinkers and businesses to round out its robust economy. And its nurturing environment appears to be paying; according to the "City of Entrepreneurs" report from the City of Toronto, incubators and accelerators now support nearly 6,000 startups across 11 sectors in Toronto.
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