In a year marked by geopolitical instability and economic uncertainty, one thing has become undeniably clear: it’s time to stand up for Canada.
The wave of patriotism sweeping across the country is more than symbolic—it’s a signal of collective willpower. From coast to coast, Canadians are proving that when it counts, we rally. The growing Buy Canada movement is tangible proof that we can mobilize, adapt, and support our own—if given the right motivation.
For entrepreneurs, small business owners, and investors alike, this is a once-in-a-generation opportunity to harness a national mindset shift. For decades, we’ve seen promising small Canadian companies migrate south in search of capital, liquidity, and scale. But what if we could stop that flow? What if we built a capital markets environment in Canada that made staying home the better choice?
The benefits would ripple far beyond the smallcap universe. We’d be strengthening the fabric of our economy—diversifying it, innovating it, and anchoring more value creation here at home.
To do this, we must focus on several critical areas:
Lowering the Cost of Capital in Canada
If we want small businesses to thrive and scale domestically, we must reduce the cost of capital.
The “cost of capital” refers to the minimum return a company must generate to justify the money it raises from investors. Lowering this cost allows more capital to flow into growth initiatives, including hiring staff, buying equipment and machinery, and productivity increasing automation. There are several levers we can pull:
Access to cheaper debt: Post-2008, the world saw a boom in borrowing thanks to ultra-low interest rates. Canada must ensure it remains competitive in this regard.
Liquid and efficient capital markets: The U.S. remains the global benchmark, offering efficient access to deep pools of capital and lower financing costs. Canada must modernize and innovate to compete.
Investor confidence: Strong, transparent markets build trust, which in turn lowers risk premiums. Canada has an opportunity to build this confidence—especially now, as U.S. dominance starts to wobble.
The U.S. capital markets juggernaut has long made it difficult for Canadian companies to resist moving south. But the tide is shifting. With cracks appearing in American financial confidence, Canada has a window to reposition itself. Capturing that opportunity requires bold policy and coordinated leadership.
Turning Policy into Progress
To meet this moment, we need more than slogans—we need action.
Canada must make it easier to build and back small businesses. This includes tax reforms, regulatory clarity, and targeted incentives to channel domestic capital into domestic innovation.
Encouragingly, both major parties are moving in this direction:
- The Conservatives’ Canada First Reinvestment Tax Cut Policy proposes deferring capital gains taxes if proceeds are reinvested into Canadian businesses. If successful during its initial 18-month rollout, it could become permanent—unlocking billions in domestic reinvestment.
- TFSA enhancements under the Conservatives would raise the contribution limit by $5,000 for those investing in Canadian companies—allowing Canadians to grow wealth tax-free while directly funding national innovation.
- Prime Minister Carney’s leadership has thus far taken a more centrist approach, scrapping both the carbon tax and a proposed capital gains increase. His government continues to lean into the Buy Canada movement, which—if harnessed correctly—could become a transformative, bipartisan force.
Regardless of political stripe, the message is clear: incentivizing investment in Canadian businesses is not just good economics—it’s good governance.
A Mindset Shift in Motion
2025 has already proven that change is possible. The Buy Canada movement is more than a campaign; it’s becoming a cultural reset. A renewed sense of pride and ownership is taking root.
For years, Canadian investors and business leaders believed success meant crossing the border. We’ve watched promising companies move to U.S. exchanges or get absorbed into larger American counterparts as soon as they gained traction. But it doesn’t have to be this way.
We already have the blueprint. Canadian success stories like Shopify and Constellation Software didn’t need to leave—they thrived by staying. There’s no reason we can’t replicate this hundreds of times over.
When companies choose to stay and thrive in Canada, the ripple effects are profound. We see the emergence of vibrant economic hubs that attract talent, foster new spin-off ventures, and fuel a self-sustaining ecosystem of innovation. A strong entrepreneurial spirit drives waves of opportunity, strengthening both the local economy and the tax base. Just look at the impact Microsoft had on Seattle, or how Hewlett-Packard helped shape Silicon Valley. There’s no reason Canada can’t be home to more world-class companies—but to get there, we must learn to think bigger and better reward those willing to take risks.
What You Can Do
As retail investors, your participation is not only welcome—it’s essential.
Invest in great Canadian businesses: Look for the fundamentals—revenue growth, profitability, strong leadership. These are the companies that will drive the next decade of Canadian innovation.
Get involved at the policy level: We’ve been working directly with policymakers, capital markets leaders, and industry groups to drive forward these ideas. If you want to contribute, we invite you to join us. The more united our investor community becomes, the louder our voice will be.
Why It Matters
We’ve been in the small company space for years because we believe in it. Not just in the returns, though they matter. But in the impact: watching a small company raise capital, grow, hire Canadians, and succeed right here at home.
That’s the power of local capital meeting local ambition.
Today, this movement has taken on a new urgency. There is a growing sense of duty—to invest here, innovate here, build here, and believe here. Because the only thing separating Canada from becoming a world-class innovation economy is our willingness to back our own.
The time is now.
Let’s invest in Canada—and build something bigger than just returns.
If you have something to contribute to this initiative or believe you can help in any way, we’d love to hear from you. Please email us.
