I think there are a number of factors here, and I don't think social factors should be ruled out. There are a number of startups here, but there are also many

I think there are a number of factors here, and I don't think social factors should be ruled out. There are a number of startups here, but there are also many community/social innovation hubs[1] and organizations that draw in a lot of people who come here to start something up. The number of jobs I have seen posted for the "Next Flipp!" the "Next Uber!!!" is outstanding. How many flyer-aggregate apps do people really need? There's an odd lack of creative capital in business for a city that prides itself on the arts. I think some of that is due to social pressures. Many in the arts here, at least the people who would need the money, seem to think earning any real money is evil unless you earned your $10.50 an hour working on the line in a diner kitchen. As if a financially successful business is inherently a corrupt business. Other organizations like Enterprise Toronto[2] seem like great ideas to bolster people in theory, but (speaking only from my experience) it seems to attract people who want to only run their quaint one-man dev-designer gig with enough money to do what they want, and all the free time to do it. Sounds kind of nice, but the city is flooded with people who have the same dream. (Maybe there's more space for it these days, and maybe I should get in on it). Your last paragraph raises very good questions, and the answers are probably too many: the best talent goes to California/New York/Boston(/Waterloo?), or otherwise the best talent here doesn't get into business but stays in academics. Some of the highest capital here seems to be made through selling to American companies.[3] Then of course the social factors I mentioned: it might just be that the dream is a little different for a lot of people who come here. They didn't necessarily come to strike it big with a company, but more for the culture of the place. Like you put it: having startups is not essential for a great city. [1] https://socialinnovation.org/ https://socialinnovation.org/ [2] http://www1.toronto.ca/wps/portal/contentonly?vgnextoid=032354ae91cda510VgnVCM10000071d60f89RCRD http://www1.toronto.ca/wps/portal/contentonly?vgnextoid=0323... [3] https://motherboard.vice.com/en_us/article/why-is-canadian-media-ignoring-the-100m-sale-of-a-toronto-startup-bitstrips-snapchat-bitmoji https://motherboard.vice.com/en_us/article/why-is-canadian-m... edit: I should add the obligatory MaRS is an awesome resource comment. https://www.marsdd.com/ https://www.marsdd.com/