Photo by aeriealphotography.ca

The National Post is reporting today that Canadian tech companies are beating their U.S. rivals in revenue growth. This is according to the annual Deloitte Fast 500 ranking.

Canadian technology companies posted an average revenue growth of 3,876% over a five year period as opposed to 1,927% for U.S. companies. Can someone explain to me again why Canadian VC firms aren't investing in local tech start ups?

The results show Canada is a better incubator of technology, where companies grow from zero revenue to around US$50-million very quickly, he said. At that point, they are often acquired by their bigger U.S. counterparts.

But there is more. It turns out that just because Ontario ranks last on the VC funding list doesn't mean we lack opportunities:

The survey also found that Ontario was the country's biggest growth hub, with 13 companies based in the Greater Toronto Area, five in Ottawa and three in Southwestern Ontario.

Statistics like these are enough to make entrepreneurs in the Toronto region weep. Money, as we have often reported, is very hard for early stage companies to find. Yet, the facts are the facts. There are great opportunities here for investors willing to take the chance. We wonder how long that will remain the case as the financial industry continues to retreat to the innovation-wrecking Income Trusts. We always hear that the business community wants a free market but when the Labour Fund is removed by government why is it that our fearless business leaders abandon the venture sector? No handouts?

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