We all want to be that investor. The one that finds the next big thing Canadian investors will all eventually want in on. The biggest catalyst? Finding that company solving a problem. Canada’s next unicorn solves a painful, expensive headache for a large market, and you can see that pain in how fast prospects move through the funnel. Look for a clear use case, quick time-to-value, and customers who talk about the product as mission-critical. If it feels like a vitamin, move on. If it’s a painkiller that lands fast and expands even faster, lean in. Here’s how to identify the next big tech stock, and one that I’d certainly lean in on.
What to watch
When finding that unicorn, there are multiple factors to consider. First off, follow the revenue quality more than the revenue size. Annual recurring revenue matters, but net revenue retention tells you if the product is sticking and growing inside accounts. Then, check the efficiency of growth. The best under-the-radar names post a sensible Rule of 40 (revenue growth + profit margin = 40% or higher) and short payback periods on sales and marketing. If the burn is thoughtful, runway is long, and dilution is controlled, you’ve got a real shot at compounding without desperate financing.
From there, study the customer base for proof, not hype. Brand name logos across a few industries beat concentration in one whale. Ask how deployments start, which departments sign, and how quickly pilots turn into multi-year deals. Evaluate the go-to-market machine. A product-led motion should show rising self-serve revenue and efficient conversion to enterprise value. In Canada, check for government and crown-corp traction, which might seem boring on the surface, but is powerful for validation and stickiness.
Then, make sure valuations make sense. Compare enterprise value over sales (EV/S) to growth, margins, and durability. If growth is durable and efficient, a premium multiple makes sense. Your edge in under-the-radar names comes from catching inflection points such as new partnerships with hyper-scalers, a breakthrough enterprise accreditation, or a product release that unlocks a larger buyer. Finally, watch the catalysts and the risks in tandem. When the flywheel shows up in the data, you may be staring at Canada’s next quiet unicorn before the crowd notices.
WELL
WELL Health Technologies (TSX:WELL) might be one of the most overlooked success stories in Canadian tech right now, quietly building the kind of platform that could turn it into Canada’s next unicorn. WELL is integrating everything from electronic medical records and tele-health to cybersecurity and billing, all powered by a growing layer of artificial intelligence (AI).
The company’s latest earnings confirmed that the strategy is working. WELL posted double-digit revenue growth driven by both its virtual care and software as a service (SaaS) businesses. All while maintaining profitability, which is rare among growth-stage tech firms. Its patient visits are at record levels, and the tech stock continues to expand its digital platform in Canada, the U.S., and internationally. Yet what makes WELL stand out is its hybrid model. It’s not just a digital company chasing scale; it owns brick-and-mortar clinics that generate stable cash flow. That physical base supports its tech investments, giving it recurring revenue from both patients and practitioners.
WELL is also building strong relationships across Canada’s fragmented healthcare system. Its electronic medical records (EMR) software already serves thousands of physicians, and its tele-health platform gives it a direct link to patient engagement. What has investors particularly excited is WELL’s international potential. Its expansion into the U.S. has begun to accelerate, targeting lucrative markets where healthcare digitization still lags. The tech stock’s technology and compliance experience in Canada give it a strong foundation for scaling abroad. Meanwhile, its balance sheet remains healthy, with disciplined capital allocation and no overreliance on debt. That’s a critical point for long-term growth in this high-interest environment.
Bottom line
For those looking for the next Canadian tech unicorn, WELL checks many of the boxes. The tech stock has a massive total addressable market, real product-market fit, scalable digital infrastructure, and recurring cash flow. All together, WELL’s mix of stability and innovation makes it unusually resilient. If it continues growing its AI-driven health platform and executing on its expansion plans, it’s not hard to imagine WELL’s market cap breaking into billion-dollar territory and staying there.
