A few months ago, Thierry Lindor, co-founder of the Montréal-based startup Happly, joined a New York acceleration program for Canadian fintechs with a clear plan. He had been preparing to open an office in the U.S. and hire at least 20 employees.
“That was literally part of our pitch deck, but now we’re reassessing and reevaluating everything,” he said.
Canadian startups frequently use government grants to fund global expansion, with most opportunities focusing on regions with export potential. But the country is now experiencing what Lindor describes as a “mentality shift.”
“I’ve never seen Canadians so patriotic,” he said. “It’s kind of like, well, are we really going to send our startups — especially in AI — south of the border after being treated like this?”
Lindor’s AI-driven platform, Happly, connects users with funding opportunities, giving him a front-row seat to the shift. Grants that once supported Canadian businesses expanding into the U.S. are now being redirected to Europe, Lindor said.
“There’s this energy across the country — from civil servants to people — don’t go to the U.S., don’t even take American VCs’ money. That’s crazy.”
Startups entering wait-and-see mode
Canadian founders haven’t canceled their plans to enter the U.S. market, but many are hitting pause. It’s a classic wait-and-see move, says Giuseppe Scaravilli, a partner at the law firm Wiggin and Dana, who mentors Canadian startups at the New York-based SOSA accelerator.
The hesitation, he notes, is a typical response to market uncertainty. Many startups, Scaravilli says, will act based on where things land.
“Another common reaction is to focus on the business without making decisions based on the macro economy,” he said. “Some sectors can’t afford to pause plans each time new restrictions come up.”
Starting a business in the U.S. is still easier than in Asia or Europe because of less bureaucracy, according to Scaravilli. “If foreign governments slow funding for expansion, startups will need to raise capital in the U.S. — and there’s no shortage of it here,” he said.
For Canadian founders who haven’t paused their U.S. expansion plans, concerns include protectionism and immigration policy.
“We are being mindful of what the ‘Buy American’ sentiment might look like, and how rooted it gets,” said Jerry Chien, co-founder of Jump Point AI, a data and AI workflow automation solution for insurance brokers.
In April, the Toronto-based startup was awarded the $100,000 Carrier & Broker Prize at the InsurTech NY Global Startup Competition.
Chien, who is working to set up U.S. infrastructure, is concerned about securing visas for his team. “Local hires could be one strategy,” he said.
He also flagged the long-term impact of trade wars as a potential threat. “If tariffs keep rising, they could hurt our margins, slow expansion, and impact our clients,” he said.
If the trade war escalates, Jump Point will likely shift focus to markets like Australia, the UK, Singapore, and Germany, Chien said.
Fintech in Canada gains momentum
Trump’s trade war and ongoing uncertainty are creating ripple effects across many industries in Canada — challenges that fintech could help address.
“The supply chain is definitely an opportunity for fintech companies,” Scaravilli said. “There’s a need to create safe environments for businesses, and that’s exactly where fintech startups are thriving.”
Organizations are looking for tools to adapt quickly, according to Marcelo Bursztein, founder of Novacene AI, an Ottawa-based startup that transforms unstructured data into advanced insights.
“For us, the push toward automation and resiliency has opened the door to new conversations, even beyond fintech,” Bursztein said. “Fintech enables businesses to operate more efficiently, with fewer intermediaries and faster access to insights. That adaptability is especially valuable in a landscape shaped by shifting trade and immigration policies.”
Canadian entrepreneurs are worried that funding opportunities could dry up or that application criteria might change. As a result, Happly is seeing a spike in new users, and the average time spent on the platform has doubled
“Whenever there’s a new grant to combat tariffs, it appears in our users’ profiles, allowing them to quickly apply,” Lindor said.
Happly is aiming to close a $3 million funding round to replicate its model in the U.S., helping entrepreneurs, artists, and underserved communities access funding opportunities.
“Startup founders are optimistic by nature, so we hope things will stabilize,” Lindor said. “At the end of the day, we’re neighbors, and the sooner this gets resolved, the better. We just don’t understand the strategy.”
