In recent years, a growing number of Israeli tech companies have leveraged the Canadian stock exchanges, notably the Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSX-V), as an alternative path to public markets. While Wall Street remains a traditional choice, the Canadian exchanges provide a compelling opportunity for growth-stage companies – offering accessibility, flexibility, and a more cost-effective listing process.
While exchanges like NASDAQ and the New York Stock Exchange (NYSE) offer clear advantages of high liquidity and media attention, the Toronto Stock Exchange provides a more attractive alternative for small to mid-cap companies looking to raise capital while maintaining financial flexibility.
1. Faster and more cost-effective path to going public: Canada’s regulatory requirements allow companies to conduct public offerings under more favorable conditions compared to major US exchanges. While the strict requirements of NASDAQ and NYSE may present significant barriers for growth-stage companies, TSX and TSX-V enable stock listings through a less complicated process, which is also suited for smaller-cap companies. This allows Israeli companies to go public and raise the necessary capital for growth without undergoing overly complex and costly procedures.
2. Investors open to innovation and technology: The Canadian market is characterized by a strong openness to sectors such as technology, cybersecurity, fintech, and digital health. Canadian investors tend to seek companies with a clear business model and proven growth, but compared to American investors, they are generally more open to calculated risks.
Israel has a global reputation as the Start-Up Nation, making Israeli companies natural candidates to attract Canadian investors. This market actively seeks innovative solutions in fields where Israel excels, enabling Israeli tech companies to find a market that understands their needs and values their potential.
3. Financial stability with a gateway to the US: Canada’s economy is considered one of the most stable in the world, and its banking system is recognized as one of the strongest and safest globally. Israeli companies choosing to list in Canada benefit from a dual advantage: on one hand, they operate in a stable financial environment with clear regulations; on the other hand, they gain direct access to the North American market, including the United States.
For companies targeting North America, listing in Canada can serve as a strategic stepping stone to enter the US market without facing the high costs and entry barriers of major American exchanges.
4. Lower costs compared to NASDAQ: Canadian exchanges offer a financially efficient alternative to US markets. Compared to NASDAQ or NYSE, companies listing on TSX or TSX-V face substantially lower regulatory costs, listing fees, and compliance expenses. This means more capital remains available for strategic growth, R&D, and scaling operations instead of being absorbed by administrative overhead.
Israeli companies interested in going public but wary of the high costs of registration and compliance with US regulations can find a more affordable alternative in Canadian exchanges.
Regulatory costs, listing fees, and additional financial services are lower in Canada, allowing companies to allocate more resources toward business growth and R&D instead of spending heavily on meeting US capital market requirements.
Furthermore, by entering the Canadian market, companies gain access to American investors who actively seek opportunities in the Canadian market – a trend less common for companies listed in Israel. Another key point is that since the Canadian exchange is smaller than NASDAQ (despite being a top-10 exchange globally), successful companies have an easier time standing out, attracting attention, and gaining investor interest.
Opportunity for Israeli tech companies
Israel is regarded as one of the world’s leading innovation hubs, with hundreds of start-ups seeking ways to raise capital for growth and international expansion. While many Israeli companies traditionally focus on raising funds from venture capital and private investors, public offerings provide a long-term solution that can offer financial stability, access to new capital sources, and enhanced brand recognition in international markets.
At Zoomd, we have firsthand experience with the benefits of the Canadian market, having gone public on the TSX-V. Our experience has shown that the Canadian market understands the needs of tech companies, offers flexible financing solutions, and provides a platform for growth and expansion.
In conclusion
For Israeli tech companies considering going public, choosing the right exchange can be critical to their success. The Canadian stock exchange offers a combination of IPO accessibility, openness to tech investments, financial stability, access to the North American market, and lower costs – advantages that make it one of the most attractive destinations for companies seeking capital raising and global growth.
The significance of a public market does not end with the IPO; it also generates awareness and investor interest, leading to stock liquidity and ongoing funding opportunities for development and growth.
For Israeli tech companies with global ambitions, the choice of public market can shape their growth trajectory. Canadian stock exchanges are not just an alternative – it is a proven springboard for companies seeking capital efficiency, investor engagement, and a North American footprint. At Zoomd, we have seen firsthand how the TSX-V fosters innovation and long-term growth. Israeli companies looking to scale should seriously evaluate this strategic opportunity.
The writer is the CEO of Zoomd.