As quantum computing races toward viability, several developments suggest Toronto’s Xanadu Quantum Technologies is primed to be a leader in the field. On Nov. 3, the venture revealed plans to go public on the TSX and NASDAQ in early 2026; three days later, it was named as one of 11 companies advancing to Stage B of the U.S. Defense Advanced Research Projects Agency’s (DARPA) Quantum Benchmarking Initiative.
Along with $15 million (U.S.) in potential funding for Stage B participants, the DARPA milestone provides a who’s in/who’s out list of firms that have passed Pentagon vetting to determine whether it’s possible to deliver advanced quantum computing for a reasonable price. (Stage C finalists will receive up to $300 million (U.S.) in funding.) The sector is being watched closely by investors looking to cash in on the “quantum craze,” with stock growth surpassing AI in the past 12 months.
All this activity made last week an opportune time to announce Xanadu’s public listing through a special-purpose acquisition company (SPAC). (The SPAC approach, which is a faster and less costly alternative to an IPO, will allow Xanadu to merge with Crane Harbor Acquisition Corp., a shell company expressly created for this purpose.)
“We were looking at what was happening in the public markets for quantum companies and thought, ‘It’d be great to be part of that,’ ” says CEO Christian Weedbrook, who founded Xanadu in 2016. According to Weedbrook, the company was able to raise $275 million (U.S.) from private investors in just four weeks, and an additional $224 million (U.S.) will come from Crane, driving the total value to $3.1 billion (U.S.). The deal, which is expected to close next spring, will make Xanadu the first quantum computing company to be listed in Canada, the TSX’s first tech listing in four years and the first and only public company pursuing photonic quantum technology.
Weedbrook says his firm will use the funding to build the world’s first quantum data centre by 2029. And, he notes, “we’ll be doing it here in Toronto.” From that point, he anticipates Xanadu will be able to roll out the tennis court-sized data centres to its client base. Even with these major expansion plans in the works, however, Weedbrook emphasizes that a U.S. relocation is not on the horizon. For him, the decision to set up shop in Canada was personal. “There’s a lot of talent,” he says. “And personally, I just love this city and want to do something big here.”
Big deal for Toronto biotech firm
Toronto-based AmacaThera, which specializes in novel drug delivery solutions, has forged a partnership with American pharmaceutical firm Pacira Biosciences. The deal will allow the latter company to use AmacaThera’s proprietary technology to deliver non-opioid pain relief after surgery. Along with financial incentives (Pacira will pay $5 million (U.S.) initially, with additional royalties and profit-sharing options down the road), the deal has the potential to accelerate the clinical process, as the two parties will work together to move through the necessary testing on the path to market.
Sustainable support for York Region startups
Two organizations and seven agtech and cleantech startups will receive $10,000 apiece from ventureLab and York Region’s 2025 Entrepreneurship and Innovation Fund. The fund is divided between two streams — the first covers non-profit orgs that are working to support underserved communities, while the second is designated for “groundbreaking technologies that support sustainable growth and environmental stewardship.”
Sunnier funding outlook for Canadian startups
After a stretch of not-so-positive updates, recent reports suggest that there is reason to be optimistic about the state of investment for ventures in Canada. According to The Logic, during the first eight months of 2025, the country’s startups received $177 million (U.S.) from BMO, CIBC, RBC, Scotiabank, National Bank of Canada, TD and Desjardins — a shift from the sluggish activity in recent years — while the National Angel Capital Organization has noted that angel investments in early-stage companies rose 27 per cent between 2023 and 2024.
By the numbers
$1 million: Total crowdfunding generated in a little more than a week by Gander Social, the plucky social-media startup that founder Ben Waldman is positioning as a wholly Canadian alternative to Facebook and other American-owned platforms.
$1.25 million: How much was raised by Aslan Renewables in its recent pre-seed round. The P.E.I.-based company intends to use this funding to scale its sustainable hydroelectric energy systems.
$30 million (U.S.): The amount raised by Montreal-based cybersecurity firm Flare in its latest round of funding.
$1.5 million (U.S.): How much Toronto startup Falcon raised in pre-seed funding, which the company will use to launch its proprietary “integrated design environment” — a tool that can be used by both designers and coders working in tandem to develop products.
$20 million (U.S.): The amount raised by New York City-based fintech firm DealMaker in its recent round of funding.
Dominique Ritter writes about technology for MaRS. Torstar, the parent company of the Toronto Star, has partnered with MaRS to highlight innovation in Canadian companies.
