July 14, 2022 | Damien Phillippon, COO Zelros
European tech companies looking to relocate in North America are faced with an important decision, one that requires a careful balancing of priorities.
Silicon Valley or San Francisco are the natural choices for tech companies looking to expand their footprint, while New York is the preferred destination for financial services firms.
But doing business in the United States comes with a cost – namely, a high price tag. From taxes to regulation to the high price of hiring talent, the United States is on par with the costliest locations in Europe.
That’s why Zelros thought long and hard about its options when choosing a location for a foreign office. Ultimately, we decided on Montreal, Canada – an out-of-the-box location that has nonetheless proven to be a wise choice. Let me explain why.
Canada Wants Entrepreneurs
We were founded in 2016 and currently maintain offices in France, Germany, Switzerland, and Germany. Our goal is to disrupt the insurance industry by enabling insurance players to offer their customers the very best in insurance options through the use of AI.
There were a number of factors that went into our decision to establish a North American subsidiary, first among them having access to the biggest players in the insurance market in the US.
We considered New York, Boston, or Chicago, which are all wonderful cities with much to offer. But they are also huge urban centers that carry with them high costs for rent and cost of living. For instance, sending a child to a French language school in New York is 10 times more expensive than in Montreal.
Montreal also carries with it other advantages. The Canadian government made our move relatively simple and pain-free through programs that encourage entrepreneurs to relocate. They recommended lawyers who helped us navigate the Canadian regulatory process while making sure we also complied with French law for foreigh business operations. As well, we were referred to accountants who assisted us in setting up our books and complying with the relevant tax codes.
Our subsidiary was created in a matter of weeks and I received my visa in about two months. In the US, that simply wouldn’t have been possible.
The Canadians also introduced us to players in the fintech ecosystem – partners, prospects, and institutions. We honestly felt as though they had rolled out the red carpet for us.
Montreal’s Charm
The talent market in software and data science is hot across the world. In the US, it’s extremely competitive. In Montreal, the competition for top talent is less fierce, which means the cost of recruitment and employment is less. We have found talented people with good skills in Montreal, in part due to the location of several gaming companies in the city.
We also recruited talent from the US, and were surprised to find that many of them were enthusiastic about relocating to Canada. Since Covid, something has changed in the world. People are less laser-focused on work and more concerned about building a fulfilling personal life.
That has played to our advantage as a French company. People respect French culture and its emphasis on living a good life. Recruits are especially eager to visit our headquarters in the City of Love.
No less important for our business, Canada has become a hub for AI. The government encourages partnerships between universities and the business world and we have already built relationships with researchers to advance our product development.
One Word of Caution
Quebec residents speak French, but that doesn’t mean they are culturally European. They are much closer to Americans in manners and attitudes.
In Quebec, there is a nice balance between personal and professional life, and many stunning natural wonders to visit.
If I had one word of caution about Montreal, it would be the long, hard, cold winter. Any company considering relocating here should take that into consideration. And if you do decide to move here, I would recommend you buy a warm coat!
