Toronto is indeed up and coming like every major city, as tech continues to become more essential and dominant. My company, Fiix (www.fiix.io), is an example of a company based out of Toronto, that actually just got backed by YC. Ideally we'd love to stay in Toronto, but the valley continually entices us and a lot of startups to eventually transition there because of their abundance of top talent. The main reason we are in Toronto is because our current market consists of only Torontonians. As we look to expand our services, staying in Toronto might become very difficult. I think once Toronto has a huge surplus of tech talent, then it will be very interesting... Maybe a first mover advantage works in the valley's favor here ;)