Toronto tech startups lead the Bay Area?

Everybody knows that costs for tech startups in the Bay Area are crazy. Pundits have predicted that these high costs could, maybe, someday, blunt the Bay Area’s edge.

“Someday” was apparently last month.

At the end of July, Bloomberg reported on a new study by CBRE that showed each of New York, Seattle and even Washington DC created many more new tech jobs in 2017 than the Bay Area.

And then came the pigs can fly moment. The region that created more tech startup jobs than the Bay Area, New York, Seattle and DC combined was… Toronto. Yup, the GTA.

Now as we all also know, job creation is a dodgy metric for evaluating startups. So we need to triangulate. How about cost of doing business?

When you add labor and space costs together, Toronto is almost half as expensive as the Bay Area.

How about Toronto costs compared to Rochester.? It’s the US tech region with the lowest costs in the Lower 48. Toronto costs are almost 20% lower than Rochester’s.

All of this was based on converting all expenses to US dollars.

And here’s another perspective. CBRE also reports that when it comes to the fastest growing markets for tech talent, there’s a top 10 — and the Bay Area is not in it.

The leader in this category is… Ottawa.

And Ottawa doesn’t just squeak in ahead of its competitors at the finish line. Ottawa’s tech talent growth rate is more than double the second-fastest growing US center. That’s L.A.

Geoff Foulds
Geoff Foulds
What fascinates me are the edges. And nowhere are the edges edgier… the stakes higher… than startups. There are plenty of sources of friction, compression and tension among founders and financiers, engineers and marketeers. How do you mesh all the edges so they transmit power even when loads are heavy? That’s what I write about.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Latest Blogs

ITB in your inbox

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.