3 ms·
Is this a problem just in the US? Why don't we see more tech IPOs in other countries such as Canada?
by jonny_eh 16y ago
Is this a problem just in the US? Why don't we see more tech IPOs in other countries such as Canada?
- yummyfajitas 16y agoCanada lacks the startup ecosystem (so few homegrown IPOs), and changing countries is tricky. Moving your flag while keeping your offices in the US is even trickier - you run into risks like double taxation (e.g., paying taxes on profits in Canada, then paying taxes in the US when you move the money from Canada to the US). Also, the benefits of being traded on TMX are not as large as the benefits of being traded on NASDAQ. Lower liquidity, the "huh?" factor, etc. That could change if many companies move to TMX, but there is a Chicken&Egg problem here.