The issues keeping local founders up at night

As someone who often speaks with entrepreneurs about their challenges and triumphs, I couldn't help but check in with a few of them about how they're navigating the current landscape of global political turmoil, uncertain Canadian leadership, and looming trade tensions with the United States. Their responses paint a complex picture of both resilience and concern, highlighting deeper structural challenges within the local — and arguably, national — startup ecosystem.

While some founders maintain unwavering optimism, others are questioning the very feasibility of building global companies from Canadian soil. The responses reveal a startup community grappling with everything from immigration policies to capital availability, while trying to maintain focus on their core missions.

"I'm up late cause I'm excited about what's next," says Jessica Yip, co-founder and COO at A&K Robotics, which has developed an AI-enabled micro-mobility pod. "But yes, there's a lot of noise out there. You could lose your mind trying to listen to all of it. What keeps me grounded is the demand for what we're building, that no other company can deliver better than us."

However, this optimism isn't universal. Arnav Mishra, founder and CEO of restaurant marketing platform Dyne, articulates deep concerns about the fundamental challenges facing Canadian startups. "The Canadian economy is increasingly inhospitable for scaling businesses," he states. "Startups here deal with high taxation rates that make our pricing less competitive in global markets like the U.S., Mexico, or India."

The immigration system, meant to attract and retain talent, appears to be failing some of Canada's most promising entrepreneurs, including Mishra. Despite employing over 20 Canadians and having a track record as a serial founder, he faces an uncertain status. "Despite my economic contributions, Canada's policies often treat me no differently than a gig worker on a temporary visa," he explains. "With changes to work visa extensions, I could be asked to leave in two years. This is demotivating for entrepreneurs who build businesses that create jobs and innovation within the country.”

The specter of new tariffs from the United States looms large for many founders. Stephanie Willerth, CEO of Axolotl Biosciences, which produces specialized materials for 3D-printed human tissues, expresses concern about potential Trump tariffs on Canadian goods, including their bioinks. However, she maintains some optimism: "I am hopeful that possibly the political situation will drive a focus on rebuilding manufacturing in both Canada and the United States."

For Kaylee Lieffers, CEO of beauty line launch platform Blanka, the uncertainty extends to domestic politics. "With Trudeau stepping down and a potential change in government coming, I'm wondering whether we will see as much support for early stage start-ups as we have previously," she notes. Her company is already taking protective measures: "We've already started to proactively build those [potential tariff] costs into a new pricing model."

The challenges appear particularly acute for companies seeking growth capital. "What is keeping me up at night is the lack of money in Canada and the uncertainty of investment from the U.S.," says Karolina Valente, CEO of VoxCell BioInnovation. "For companies that require growing capital (not seed capital), it is clear that Canada cannot support them [...] While the U.S. used to be the source of capital for many Canadian companies, the uncertainty of the U.S. government and how it will change in the next four years is now affecting money deployment. Our focus is now switching to Europe. But the truth is, for how long do we have to go around the problem instead of solving it?”

Some founders are questioning whether maintaining Canadian operations makes sense. Olia Stasiuk, founder and CEO of Bonzai AI, points out that her company's first investors, clients, and strategic partners are all non-Canadian. "So why should I keep trying to keep my company under the Canadian umbrella in 2025? Is that really still a path to make a unicorn?" she asks.

Bijan Vaez, founder and CEO of ProductShotsai, notes that while the weak Canadian dollar provides some advantages for SaaS companies earning in USD, the domestic market presents its own challenges. "The economic climate in Canada isn't exactly making it easy to close big deals with local enterprises. These companies, already risk-averse, are pulling back even more on spending, which limits opportunities at home.

“That’s led to a stronger shift toward focusing efforts in the U.S. — investing time and energy there, and building stronger relationships with American clients,” he adds. “Eventually, it does beg the question: would it just be simpler to move the business south of the border altogether?”

These founders' testimonies suggest that while Vancouver's startup ecosystem remains vibrant, it faces significant structural challenges that may require policy intervention to address. The combination of global political uncertainty, domestic policy challenges, and capital constraints is creating a perfect storm that could push some of Canada's most promising startups to seek opportunities elsewhere. And to be sure, many already have.

As the political landscape continues to shift both domestically and internationally, the responses of policymakers to these concerns may determine the future trajectory of Vancouver's startup ecosystem.

Don’t miss out on what’s happening in your backyard. Subscribe to Vancouver Tech Journal for all the news.