Paul Barbeau

Raising capital to get your business off the ground is one of the biggest hurdles you'll face on your entrepreneurial journey as an early-stage technology company. As self-financing is often not feasible for early-stage technology companies (which may be capital intensive in the early stages), companies frequently pursue external investors to grow the business. This bulletin provides an overview of the stages and types of financing common for early-stage Canadian technology companies.

In the fast-paced ecosystem of tech start-ups, emerging companies understandably focus on developing tech, growing the business, building their team and securing investment, often deferring legal matters. Trusted legal advisors who understand the tech community and have supported teams from the incubation stage to go-public and other successful exits are an integral part of the early-stage team.

Both domestic and international businesses, when doing business in Canada, may choose the province in which they incorporate. Each province has its own business corporation legislation. While there are distinguishing features in the corporate regime of each of the provinces, there has not been, until recently, a Delaware-like jurisdiction that has clear advantages for business owners and investors. For several years, academics and professionals (notably Bryce C. Tingle K.C. and J.