Lovable co-founder Anton Osika recently revealed his Swedish AI startup’s impressive growth from $1 million to $100 million ARR in just eight months. Lovable isn’t unique—VC giant a16z reports that the median enterprise now hits $2 million ARR in its first year, outpacing past benchmarks.
The distinction between annual recurring revenue and annualized run rate is significant. AI’s impact on the SaaS market allows startups to calculate ARR by multiplying monthly revenue by 12. Matt Cohen of Ripple Ventures notes this shift, as AI startups redefine revenue models.
Sanjana Basu of Radical Ventures acknowledges the shift in VC assessments due to AI’s influence. She emphasizes net revenue retention as a crucial metric to distinguish genuine growth from hyperbole. Radical Ventures deeply evaluates each startup’s customer base and revenue quality.
AI startups not only grow revenues swiftly but also face unique challenges compared to traditional SaaS companies. Despite expecting high gross margins, AI startups deal with substantial compute costs. Technological advances may not lower these costs, contrary to SaaS trends.
In a call with Basu, I wanted to discuss how AI firms manage thin margins but had to cut the conversation short for her next meeting with a rapidly scaling startup.
Douglas Soltys
Editor-in-chief
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Northern Ireland is becoming a hub for international tech firms, attracting names like Fujitsu, SAP, Microsoft, Qualcomm, Nvidia, Rapid7, and Whitehat Security, along with 35 Canadian companies. It offers a skilled workforce, infrastructure, cost-effectiveness, and supportive business climate, driving tech growth in the UK.
Interested in expanding to Northern Ireland? We offer tailored support for overseas expansion.
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Trade war tensions hit Canadian tech as the US raises tariffs and alters import policies. Companies like Paperplane Therapeutics grapple with increased costs and longer customer onboarding due to these changes. The looming renegotiation of CUSMA adds further uncertainty for business plans.
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Yaletown Partners has raised $100 million for its third Innovation Growth Fund, IGF III, with a target of $250 million. Despite tough conditions, prior fund performance secured the initial close within six months.
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Lightspeed Commerce reported $305 million USD in revenue and $129 million in gross profit for fiscal Q1 2026, surpassing outlooks. CEO Dax Dasilva credits the growth to strategic focus and supportive market conditions.
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Growcer acquired assets from bankrupt rival Freight Farms for $3.6 million CAD. This adds new customers and proprietary software to Growcer’s portfolio, maintaining a legacy while enhancing its market presence.
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Ceedar, launched by Connor Turland and Pegah Vaezi, transforms customers into investors with its AI bookkeeping platform. With $275,000 CAD in funding, Ceedar aims to be the ultimate bookkeeping solution.
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Cohere’s partnership with Bell Canada offers access to Canadian AI infrastructure, integrating Cohere’s solutions into Bell’s services for government and enterprise clients, and empowering Bell employees with AI agent tools.
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Marc-Antoine Cantin assumes leadership of Anges Québec as Stéphane Drouin steps down for personal reasons, bringing a fresh vision to the angel investor network.
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Enabled Talent, co-founded by Amandipp Singh, aims to use AI to make jobs disability inclusive. Initially planned as a doctoral project, the idea evolved into a platform matching disabled job-seekers with accessible opportunities.
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## Weekly Canadian Deals, Dollars & More
– CAN – CSA awards $14.6M to companies for a new lunar rover.
– CAN – CAISI pledges $1M for AI safety research collaboration.
– SA – 4AG Robotics closes $40M Series B for robot fleet expansion.
– ON – Ontario cancels contract with SpaceX’s Starlink.
– KW – Cavelo secures $5M seed extension led by Inovia.
– HAM – NGen tops up a $108M sustainable manufacturing investment.
– OTT – Versaterm acquires DroneSense for over $100M USD.
– DRT – Mara raises $12.5M to take algae-based omega-3 oil global.