Plus: Xanadu will go public in a $3.6 billion SPAC deal.
I returned from sunny Ottawa to snowy Toronto, tired but happy after a busy budget week.
We spent Tuesday in lockdown improving the depth and quality of our budget reporting, and the BetaKit team rose to the challenge, producing over 6,000 words (!) on Budget 2025 so far, all of which you can find below.
Helpful readers who emailed me with suggestions last week will find many of their questions covered in our… reporting. Many, but not all: While Budget 2025 has many commitments to spend on Canadian technology, it has relatively few details explaining how those commitments might be realized or the strategy behind them.
But that's okay (for now). As CBC's Peter Armstrong aptly noted this week, “budgets are always an exercise in storytelling.” Good stories get bogged down in too many details.
So what is the story of Budget 2025? Well, the story of last year's budget was the Liberal government. I'm eager to fight. Miraculously, the government once said lost this fight but remained in power (under new leadership).
This year, as I said here before, the fight came to Canada. Budget 2025 is an attempt to tell the story of how our country can wean itself off its dependence on the United States—in a short time frame and with little margin for error.
And what does this mean for Canadian technology? Well, the innovation strategy of the last Liberal government failed mostly in executionso I guess we're back to those nasty details again. For a good initial count of which missing pieces are most important, may I suggest our post-budget policy dashboard (also below)?
Even better, write to me if you caught one, we missed it.
Douglas Soltis
editor-in-chief
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What's in #Budget2025 for Canadian tech?
- Budget 2025 includes huge spending commitments but ultimately makes Canada more competitive in defense, taxes and financial services. Find all the questions, actions and reactions related to Canadian technology in our basic budget primer.
- With $80 billion in funding, including $6.6 billion for the Defense Industrial Strategy, the 2025 budget saw defense become cornerstone of the federal government's technology commitment.
- After years of frustration and delays, the 2025 Budget committed to creating a “competitive and innovative” financial system, including The open banking movement, real-time rail, and stable coin legislation.
- Last year's budget sparked fury in parts of Canada's tech sector. This year? Some innovators and the organizations that represent them they say they are happy. The new government's engagement with the private sector has been critical, tech leaders say.
Xanadu will go public on Nasdaq and TSX in a $3.6 billion SPAC deal
Toronto-based quantum computing company Xanadu has struck a deal to go public through a merger with a special purpose acquisition company. The deal could make Xanadu the first Canadian technology company to debut on the TSX in more than four years.
This week Xanadu joined Canadian companies Nord Quantique and Photonic in advance to next round quantum computing research program supported by the US military. Companies are now one step closer to the $316 million that could be awarded if they can develop a functional, fault-tolerant quantum computer.
“Today we could go public”: 1Password surpasses the $400 million ARR mark
Toronto-based cybersecurity software company 1Password said its annual recurring revenue topped $400 million and added several new executives as it prepares for the age of artificial intelligence.
1Password CEO David Faugno told BetaKit that its current size and market position is a “great starting point” for “bringing that level of trust” to AI—something he said 1Password still has work to do before considering the idea of an initial public offering.
Canada sees angel investment rebound as industry demands more federal support
Angel investment activity in Canada continued to recover from post-pandemic lows in 2024, according to a report from the National Angel Capital Organization. The report said total angel investment in 2024 was $146.2 million, up 27 percent from the year before.
Earning Season 📈
- Shopify easily beat sales growth forecast and maintained strong free cash flow in the third quarter of 2025but despite the solid earnings report, investors seemed unimpressed.
- Lightspeed slightly improved its outlook for the remainder of its fiscal year after reporting revenue of $319 million. its second quarter earningsexceeding internal forecasts.
Six years later, Questrade is finally able to launch Canada's newest bank.
Toronto-based online wealth management brokerage Questrade has received approval from the Office of the Superintendent of Financial Institutions (OSFI) to begin banking operations under the name Questbank. This approval marks the completion of a six-year journey to obtain a Schedule 1 banking license, which the company applied for in 2019.
Beacon Raises $250M Series B to Buy and Equip 'Main Street Business' with Artificial Intelligence
Toronto-based Beacon Software has closed $250 million in Series B funding to acquire smaller niche software and services companies, infuse them with artificial intelligence, and grow them over the long term.
The artificial intelligence holding company says that since its launch last year, it has already acquired and partnered with dozens of software and services companies in areas such as education, finance, logistics and leisure. Co-founder and CEO Neelam Ganenthiran told BetaKit that Beacon acquires a new company about every two weeks.
SELECTED STORIES FROM OUR PARTNERS
- From November 18 to 20, NVIDIA, AWS Canada, Google and Microsoft will join Alberta policymakers and Canadian tech founders for a deal-making conference. Three reasons not to be missed Future summit 2025.
- VentureLAB's Critical Industrial Technologies Development and Commercialization Program is driving the rapid adoption of artificial intelligence in advanced manufacturing, construction, agribusiness, and mining. Read how.
- “We haven’t even considered building a lab in Toronto.” Meet the companies Mississauga betting.
- Profitual's No-Pitch competition will award $10,000 to the startup with the strongest financial model. Read about the program that judges startups by their numbers.
🇨🇦 Weekly Canadian Deals, Dollars and More
- TOP – Maple acquires Grafton, NY Beyond ADHD
- OTT – Gander Social raises over $1 million through FrontFundr
- MTL – Torch provides US$30 million for expansion plans
- MTL – FrontlineIQ raises $3.3 million to “gamify” sales using AI
- HFX – Sea Launch receives $10 million from MDA for spaceport
BetaKit Podcast – Budget 2025: “Cautiously Optimistic”
“After last year's budget, which left me broke and alone on a desert island, I'm back to cautious optimism.”
This is a powerful post-budget podcast featuring a variety of Canadian policy experts! Vass Bednar (Canadian SHIELD Institute), Benjamin Bergen (CCI), and Jackson Khan (Aperture AI) join to explore the story Budget 2025 tells about Canada and what juicy nuggets of technology policy and fiscal commitments need to be dipped into the sauce with more details. Let's dig in!
Take the BetaKit Test: Tesla Pays Elon, Apple May Pay Google, and #Budget2025 Breakdown
Think you're up to date on Canadian technology and innovation news? Time to prove it. Test your knowledge of Canadian tech news with the BetaKit quiz on November 7, 2025.
A must-have event for Toronto IT leaders
BetaKit partnered with Avega to announce an invitation-only discussion on Wednesday, November 13th.
As Canada makes unprecedented investments in cybersecurity, this is a peer-to-peer conversation about how to manage IT in an age of risk.
The event will feature RingCentral's Jeffrey Jakubik, CyberMax's Anthony Cali, and Cologix's Adam Deacon. Get real-world strategies from experienced IT leaders and compare your approach with peers facing similar challenges.
Join a select group of technology leaders as they share practical insights on driving IT transformation in a risky environment.
Seating is limited – grab your seat now.
Artistic image courtesy of Jason Hafso via Unsplash.
