The Canadian Advanced Technology Alliance is sounding alarm bells over newly proposed American legislation that could allow earlystage U.S. firms to raise funds through social networks.
Unless Canada enacts similar measures, the Canadian tech industry lobby group says, the plan could spark an exodus of promising firms and lure more Canadian startup money south of the border.
"Many Canadian startups have great ideas, but they never get funded," said John Reid, chief executive of CATA. "Now the U.S. will add new legislation that will make it easier for small investors to invest in early-stage companies. Technology entrepreneurs are highly mobile and may simply decide to start their new businesses in the U.S. if that is where they have access to startup capital.
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