Significantly fewer Canadian technology startup companies are looking to exit the market by finding buyers than last year, according to a PwC report released this morning.
PwC’s 10th annual Emerging Canadian Technology Companies: A CEO Perspective report states that 44% of startups surveyed are seeking a merger or acquisition to exit the market. This is a sizeable drop from the results released a year ago, which showed that 76% of surveyed companies were looking for this exit route.
“The outlook is positive for Canadian startups, but it is crucial that CEOs not rest on their laurels,” says Chris Dulny, PwC’s National Technology Sector Leader.
“Tech services are in high demand, and smart operational and financial decision-making are the tools to bringing a company’s vision to life and seeing it thrive.”
The study found that nearly 70% of respondents generate most of their revenue in Canada. Among their biggest concerns are:
- revenue generation (41%);
- funding (19%); and
- attracting and retaining talent (11%).
The survey also found that women make up 27% of the startup workforce and 24% of management teams, and that private funding from family and friends is the primary source of financing.
