Canadian Startup and Video Game Law Blog
Startup and video game law, from a Canadian and U.S. perspective
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Y Combinator No-Longer Accepts Canadian Companies
Canadian startups! Y Combinator no-longer accepts Canadian companies. For years, Y Combinator permitted its cohort to incorporate in the US, Canada, Singapore or Cayman. Now, for the most recent cohorts of YC companies, Canadians are being forced to reincorporate in the US. This fundamental shift in deal policies places Canadian founders in an awkward position...
Why we don’t Incorporate Federally
Prospective clients often ask to incorporate “federally” or that they want a “Canadian incorporated” company. In most cases we recommend a provincial incorporation instead – here’s why: 1. Federal Falsehoods At the start, it’s critical to dispel federal incorporation falsehoods: First, federal incorporation does not allow the company to operate Canada-wide. Like a provincially incorporated...
You Don’t Need a US Company to Raise from the US
We’ve attended a number of presentations lately where Canadian founders are told that they MUST be a US company to raise money from US investors. This advice is patently false; Canadian startups raise from US investors all the time and investors generally don’t care that a prospective portfolio company is Canadian. 1. Where does this...
Raising Capital from U.S. Investors
Many Canadian companies raise funds in cross-border financings, with most rounds including at least 1 U.S. resident investor (if not a U.S. lead investor). If your Canadian startup is raising funds from U.S. investors, you will need to keep the following in mind: 1. Value Your Startup in USD All Canadian startups should value themselves...