Job Creation Data in the Atlantic Canadian Tech Ecosystem for Q1 2022

Job creation data in the Atlantic Canadian Tech Ecosystem for Q1 2022

Ukraine

After a long build-up of Russian forces along the Ukrainian border, Russia invaded Ukraine in February of 2022.  While there were warnings of this invasion, it sent shockwaves through the international community.  Shortly after this invasion, a number of international sanctions took place against Russia and have resulted in a mass exodus of companies and assets from Russia.

COVID

On the COVID-19 front, the omicron variant continued to spread causing additional strain on many already over capacity healthcare systems. In addition, China took a hard stance with full-out lockdowns across many of their cities with a zero-COVID policy.

Global Ripple Effects

These macro events have caused a number of ripple effects across the global economy. For example, decreased manufacturing capabilities and increasing oil prices (e.g. transportation costs) are fueling a number of supply chain problems and rising costs. These effects, plus monetary policies over the past couple of years, are causing inflation to hit record highs, which is leading many central banks to fight it by increasing interest rates.

Warren Buffet once said “Interest rates are like gravity in valuations. If interest rates are nothing, values can be almost infinite. If interest rates are extremely high, that’s a huge gravitational pull on values.”

Many entrepreneurs who launched their businesses in the last decade have only experienced an environment of low-interest rates, which has led to high valuations.  As interest rates rise, investors will begin moving away from high-risk assets into safer havens. 

This is why there has been a pullback in venture capital in Q1 2022 and there will be a continued pullback as interest rates go higher…  If you look around at the sentiment across venture capital investors in Q1 2022, most are saying to prepare for the worst.

Some entrepreneurs reading this may feel they need to hit the panic button. On the other hand, some entrepreneurs may think this environment doesn’t necessarily affect them. The only advice I have to those in either of those camps is to continue creating products/services that delight your customers and manage your cash obsessively. Do this, and you’ll weather any storm.

Atlantic Canadian Technology Ecosystem Performance in Q1 2022

With everything going on in the world, how did the Atlantic Canadian technology ecosystem perform in Q1 2022?  It doesn’t appear there was any pullback in the region.  In fact, there was a large increase in jobs across the startup ecosystem in Atlantic Canada throughout Q1 2022.  The number of jobs increased by about 478, bringing the number of those employed by the sector to 13,298. 

Of the companies that I’m tracking 29% hired employees, 47% had no change and 24% had less staff than the previous quarter. Much of the job growth came from companies that announced large raises in 2021.

Funding News

In addition, there was some big funding news out of the region in Q1 2022:

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Top Atlantic Canadian Tech Employers in Q1 2022

Sorted by net new jobs created:

  • Verafin
  • Meta
  • Vid Cruiter
  • Dash Hudson
  • Novonix
  • Mysa
  • CarbonCure Technologies
  • Biovectra
  • Sonrai
  • iWave
  • SpryPoint
  • Mariner Partners
  • ShoeLace (previously EyeRead)
  • Skin Fix
  • Carbide (previously Securicy)
  • Colab
  • Milk Moovement