Bootstrap City vs. Techstars: Exploring Why Ottawa’s IRR Could Be the Top Venture Capital Opportunity

In his article dated April 22, 2025, Nick Quain, the Vice President of VentureInvest Ottawa, highlights the impressive investment returns in Ottawa compared to global accelerators like Techstars. Despite Techstars being a significant player with 4,400 startups and $27.6 billion in capital raised, Quain argues that Ottawa’s startups are outpacing Techstars in terms of producing billion-dollar companies — measuring success not by inflated unicorn valuations but by the reality of centaurs, firms that generate over $100 million in revenue.

Quain challenges the common narrative surrounding unicorns, indicating that many of these high-valuation companies are not financially viable, as their worth often relies on exaggerated metrics that don't translate to meaningful returns for founders and early investors. He cites Stanford research which reveals that unicorn valuations can be inflated by up to 50%, making them unreliable indicators of financial strength. In contrast, centaur companies like Shopify and Kinaxis, which have scaled to substantial revenues, demonstrate true operational success and market stability.

Quain presents data highlighting the comparative efficiency of Ottawa’s startup ecosystem. Ottawa has seen 776 companies raise $4.95 billion in capital, producing about six centaurs, while Techstars has significantly outperformed Ottawa in terms of overall capital raised but has only produced around twelve centaurs — a stark reality considering that Ottawa’s centaurs have been built with less than 20% of the capital that Techstars deployed. This capital efficiency signifies a strong focus on sustainable growth, which stands in stark contrast to the rapid but often unsustainable growth seen in some tech startups centered around unicorn valuations.

Ottawa is dubbed "Bootstrap City,” a designation that underscores the community's ethos of building robust companies with a strong foundation in capital efficiency and disciplined financial management. Founders in Ottawa are less reliant on continued funding rounds to sustain their businesses, which enhances their company's stability and sustainability. Quain emphasizes that this cultural mindset allows Ottawa entrepreneurs to focus on building companies designed to endure and thrive long-term, rather than solely aiming for quick pot-of-gold valuations.

For investors, the implications of these insights are significant. The potential for actual returns in Ottawa presents an attractive opportunity. Unlike competing startup landscapes that heavily chase unicorns, Dubai’s community is focused on real companies with tangible revenue streams, presenting a compelling case for investment. As such, Quain encourages investors to consider Ottawa as a springboard for long-term, sustainable growth.

He invites potential investors in Ottawa's startup ecosystem to discover the unique opportunities available, offering resources and support at varying stages of business development through Invest Ottawa. The overall message is clear: Ottawa is an emerging powerhouse for capable startups focused on achieving significant, sustainable returns, making it a critical destination for savvy investors looking for real growth in their portfolios.