In just a few years, significant transformations can occur.
Initially, American tech firms welcomed diversity, equity, and inclusion (DEI) efforts, but now these initiatives have been abandoned, turning them into contentious issues. For 2SLGBTQIA+ founders I interviewed, this shift has made the U.S. a less viable environment for establishing tech companies, with both investors and consumers showing diminished interest.
One U.S. founder shared that she’s found more acceptance in Canada, remarking, “There’s a scenario where I might need to hide my identity if I remain in the U.S.”
Venture capitalists suggested that Canada seize the chance to attract diverse talent, potentially benefiting from a brain gain, noting that queer founders typically generate more jobs and intellectual property according to StartOut Index data.
Dax Dasilva, the CEO of Lightspeed and a prominent 2SLGBTQIA+ founder, has prioritized DEI since the company’s inception. He highlighted Lightspeed’s expansive hiring approach, bias-aware recruiter training, and comprehensive parental leave policies for all genders. An internal audit reveals 87% of his employees feel they can express their true selves at work.
Lightspeed’s strategy is exceptional in today’s tech landscape on either side of the border. Even Canadian firms, such as public market leader Shopify, have curtailed DEI-related measures, echoing moves by U.S. tech giants like Google, IBM, and Amazon. Tech professionals and executives countered with an open letter denouncing these rollbacks as harmful for Canada.
“It’s disappointing to witness such regression, likely driven by a rightward shift in the U.S., and not even within our country,” said Dasilva.
At a time when Canada is redefining its U.S. relationship, welcoming diverse founders seeking safe spaces to innovate could convert America’s loss into Canada’s gain.
Madison McLauchlan
Reporter, Montréal