Lack of ambition in Canada, creating a ‘600-pound beaver in the room’: Shopify CEO

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TORONTO — The CEO of e-commerce giant Shopify Inc. calls on Canada to address what it calls the “600-pound beaver in the room.”

That problem is a lack of ambition, which Harley Finkelstein described as hindering the growth and long-term success of Canadian companies, the country’s technology ecosystem and the broader economy.

“This idea of ​​instilling greater ambition into the Canadian psyche, not aiming for bronze, but aiming for gold, getting on the podium… is unequivocally necessary,” he said late Tuesday during an interview with astronaut Chris Hadfield at the Elevate technology conference in Toronto.

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While they first delved into Finkelstein’s previous DJ career, why he starts his day with meditation, and Shopify’s views on remote work (great, as long as employees still meet regularly), the pair finally got down to business, discussing the state of Canadian tech.

During the conversation, Finkelstein compared startups in Canada, where he lives and runs Shopify, with their rivals in the U.S., where he went to school.

The difference between the two, he stressed, is that Canada’s lack of ambition has given the country’s startups a reputation for being acquired, often by their U.S. counterparts known for gobbling up noisy businesses.

“I want more Canadian companies to be based here,” Finkelstein said. “I don’t want to be a country of troops.”

When Hadfield asked Finkelstein what advice he would give the prime minister to solve the problem, the technology executive’s advice was simple: Ask industry workers how they can help.

Such conversations, which Finkelstein has already had with others in the industry, reveal people who want changes to freight policy and others who need access to more electricity to power their manufacturing operations.

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“But in some cases, it may just mean getting out of the way,” Finkelstein said.

His remarks concluded Elevate’s opening night, which runs through Thursday and is expected to bring some of the biggest names in the industry to Toronto to talk about rapid advances in artificial intelligence, the country’s push for open banking and how to address the cybersecurity threats of tomorrow.

Before Finkelstein’s speech, Olympians Phil Wizard and Rosie MacLennan, “Dragons’ Den” star Arlene Dickinson and executives from TD Bank and Mastercard appeared on stage.

A hot topic among the speakers was the state of Canadian technology, and the head of one of the most famous Canadian venture capital funds lamented the country’s lack of willingness to take risks.

Jordan Jacobs, co-founder and managing partner of Radical Ventures, said he sees cautious behavior emerging as local companies look for funding or people to adopt their technology.

“Canadians are hesitant to go first, which makes sense… because traditionally you want to be the second player and let someone else make the mistake,” he said.

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However, when it comes to artificial intelligence, Jacobs argued that being second best could be a disadvantage because there is a compounding factor where the technology is rapidly improving and becoming more personalized depending on users.

“If you’re in second place, you’re not just 90 days behind the person who went 90 days earlier,” he said. “That’s why I think we need organizations that are good at taking some risks.”

Jacobs’ point of view was solidified during his decades at leading technology companies such as Layer 6, which develops machine learning systems. It was purchased by TD Bank reportedly for $100 million in 2018.

In 2017, he co-founded Radical Ventures, a venture capital firm focused on artificial intelligence and other “profoundly disruptive” technologies. Her portfolio includes Toronto AI darling Cohere, autonomous vehicle company Waabi, chip company Untether AI and health AI startup Signal1 , whose co-founder joined Jacobs on stage.

Both speakers called on Canada to become more confident in taking risks.

While building Signal1, Mara Lederman said she saw the pitfalls of Canada’s overly conservative stance, especially in hospitals.

“We have patients in the emergency department being treated in the hallways and their privacy being violated every day,” she said.

“We need to change our mindset a little bit that there are real risks in the lack of innovation across sectors and across the economy, and I think that will help change the conversation a little bit.”

This report by The Canadian Press was first published Oct. 1, 2024.

Companies in this story: (TSX:SHOP)

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