Weak Dollar Hindering Canadian Tech Companies, Says VC

The weak Canadian dollar is not helping local technology startups.

According to John Ruffolo, the chief executive officer of Omers Ventures in Toronto, our weak currency renders it more difficult to attract and retain tech talent in Canada.

“There are lots of plus and minuses,’’ Ruffolo told Bloomberg. “Personally I think the minuses outweigh the pluses.”

Quoth Bloomberg:

“You thought getting talent to either stay in Canada or to try and attract folks in the U.S. was hard? Good luck. It just got 40 percent more expensive,’’ he said. “Does it make our Canadian companies far more vulnerable from an acquisition perspective? I think it does; history has shown that it does.’’

Ruffolo also suggested that several IPOs likely planned by Canadian tech startups will now be delayed until our dollar strengthens.