Navigating the Tech Startup Landscape: Insights from Mai Trinh

A Compelling Analogy

Canada is often likened to a charming partner—attractive and promising, yet frustratingly difficult to engage with. This analogy comes from Mai Trinh, founder of Internet Backyard and fresh business graduate from Simon Fraser University. Having valued her startup at $34 million (US$25 million) before making the strategic decision to move it to San Francisco for scaling, Trinh offers an evocative lens through which to view Canada’s tech startup environment.

The Allure of the U.S.

Trinh’s departure underscores a troubling trend: tech startups are increasingly relocating to the U.S. for better opportunities. She reflects, “You wake up one day, you realize your worth, and then you get out.” Her experience as an international student from Vietnam provides a unique perspective, and she emphasizes the barriers specifically facing Gen Z entrepreneurs in Canada.

The Human Capital Drain

Trinh isn’t alone in her observations. A significant exodus of talent, especially among STEM students, has been evident for years. According to a 2018 study titled Reversing the Brain Drain, a staggering 80% of graduates who relocate move to the U.S. Detailed breakdowns reveal that 66% of software engineering students, 30% of computer engineering students, and another 30% of computer science students leave Canada after graduation, primarily due to better pay and company size in the U.S.

Barriers to Growth

Trinh identifies two primary factors influencing her decision to relocate: the lack of robust fintech infrastructure in Canada and cumbersome immigration processes.

In the U.S., after incorporating Internet Backyard in Delaware, Trinh secured a US$4.5 million funding round in just one week, which highlights the stark contrast to the Canadian scene. For instance, Western Canada only raised US$3 million across all pre-seed rounds in the first quarter of 2025. The discrepancy point to a much more responsive and supportive venture ecosystem south of the border.

The Immigration Conundrum

Visa challenges compound the problem. Trinh and her co-founder Gabriel Ravacci, originally from Brazil, needed to fulfill stringent employment conditions to qualify for permanent residency in Canada. The Comprehensive Ranking System (CRS) required them to accumulate points through traditional employment, which created significant hurdles. “The Startup Visa Program in Canada currently has a 10-year wait time. It just doesn’t work for us,” she noted, expressing the frustration many entrepreneurs feel navigating these barriers.

Policy Changes Needed

Trinh is vocal about the need for policy reforms. Streamlining the visa process for entrepreneurs could significantly shift the landscape. Recently, Canada’s immigration department discontinued new applications under the Start-Up Visa Program, a decision that Trinh argues drives Canadian graduates directly to cities like San Francisco or New York due to the comparatively easier access to work visas such as H-1B and E visas.

Canada’s Untapped Potential

Despite these challenges, Trinh is optimistic about Canada’s future, especially regarding its data center industry. The country boasts rich resources, including abundant land, water, and energy, coupled with a naturally cooler climate—ideal conditions for data centers. Trinh’s startup has already initiated two customer pilots in Vancouver, reinforcing her belief that with the right governmental support, Canada could foster a thriving data management sector.

“I’d love to come back if there’s a policy change,” she expressed, highlighting the latent potential that remains within the Canadian tech landscape.

Community Building Efforts

Trinh also endeavored to cultivate a sense of community among Gen Z tech founders through her initiative ‘Red Thread.’ Although her networking platform found considerable success, funding challenges led to its closure. Such experiences illuminate the broader issue of financial support for emerging entrepreneurs in Canada, further illustrating the uphill battle faced by many in the tech industry.

In the current landscape, Trinh’s story serves as both a cautionary tale and an emblem of potential. As Canada contemplates the future of its tech ecosystem, addressing these pain points for startups could pave the way for a more prosperous future.