Press Release

Venture Capital in Canada: Summer Doldrums, Or More

All dollar ($) figures in Canadian dollars unless otherwise noted.

TORONTO, July 15, 2025 /CNW/ – Canadian venture capital (VC)* totalled $1.57 billion from 116 financings for second quarter (Q2) of 2025, up from $1.33 billion but down from 156 financings for Q1 2025, down significantly from Q2 2024 which recorded $2.76 billion from 229 financings.

For the first half (H1) of 2025, 272 financings completed for $2.90 billion, the second lowest first half results in the last five years, barely ahead of $2.81 billion recorded in H1 2020.

Amidst all the gloom and doom, US investors, led by US VCs and hedge/investment funds, have stepped their investment pace (relatively) in Canadian startups in Q2 2025 and Canadian governments and Canadian VCs are pulling back.

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* CPE Analytics tracks equity or quasi equity capital that flows directly into the companies and excludes known secondary portions of funding rounds (in which no money went to the companies), drug development funding, senior debt/mortgage funding.

H1 2025 Canadian VC investment activities by province (CNW Group/CPE Media & Data Company)

Key Observations

I.  US investors stepped up investments

US Investors led US VC and hedge/investment funds, invested $905 million in Q2 2025, representing 58% of the total disbursements into Canadian companies, up from 50% in Q1 2025, bringing the share of US investors to 54% for H1 2025.

The 58% of funding contribution by US investors in Q2 2025 was the second highest quarterly percentage since 2017, behind 62% recorded in Q2 2021.  

US VC and hedge/investment funds collectively invested $719 million in Q2 2025 or 46% of the total disbursements.

US VC and hedge/investment fund increase funding while Canadian government and VC pull back (CNW Group/CPE Media & Data Company)

II.  Canadian government and private VC funds dramatically reduced investment pace

Canadian governments invested $98 million while Canadian VC invested $84 million in Q2 2025, dropping from $209 million and $129 million in Q1 2025 respectively.

III.  BC re-claims second place as recipient of total disbursements

After falling behind Quebec and Alberta into 4th place in receiving VC disbursements in Q1 2025, BC reclaimed 2nd place that it secured in 2024. BC also replaced Quebec as 2nd place in 2017, 2020 and 2021.

IV.  ICT, Biotech and Cleantech companies continue dominate

ICT, Biotech, Cleantech companies raised $1,240 million, $833 million and $443 million respectively for a combined amount of $2,516 million or 87% of the total disbursement for H1 2025, compared to 97% of the total disbursements in Q1 2025. Financial sector companies raised $171 million during H1 2025 or 6% of the total disbursements, up from 3% in Q1 2025. 

V.  Canadian VC firm fundraising  

29 Canadian VC funds raised a combined $871 million in H1 2025, compared to 16 funds for $643 million in Q1 2025.  The VC fundraising is as bleak as in 2023 in which 42 funds raised $1.72 billion.

“The H1 2025 venture capital data reveal the difficult circumstances in which the Canadian venture capital industry finds itself today. The number of financings has dropped from 229 recorded in Q2, 2024 to 116 deals in Q2, 2025. A mere 20 private independent funds raised only $345 million or $17 million on average per fund. Government funds, in contrast, raised $500 million. On the investment side, 58% came from US sources, virtually double (at 31%) the amount derived from Canadian capital suppliers. The Canadian contribution in H1 2025 is unchanged at 31% from what it was in 2024.  In other words, Canada’s dependence on one venture capital provider, the US, mirrors its overall economic dependence on America and similarly reveals a material vulnerability of our most advanced technology sectors. Debate is raging within industry circles about whether the situation today is temporary and reflective of the widespread economic uncertainty unleashed by the US administration’s policies, particularly as they relate to tariffs and to Canada or whether this set of circumstances harkens to more fundamental, structural issues facing the Canadian venture capital industry,” commented Richard Rémillard, President of Rémillard Consulting Group (RCG).

H1 2025 Highlights

Top Cities/Areas

City/Area

# Fin’s

$ Millions

Toronto Area

86

1,182

Vancouver Area

38

624

Montreal Area

24

376

Calgary

36

221

Winnipeg

3

114

Halifax Area

15

75

Ottawa

17

65

Waterloo Area

10

59

Edmonton

4

57

Quebec City

8

54

Top 10 Canadian VC funding sources
Investors from 41 countries or regions funded Canadian companies.

Country/Region

$ Millions

United States (USA)

1,564

Canada    

898

Austria

89

Qatar

55

Cayman Islands

53

Hong Kong (HK)

44

United Kingdom (UK)

42

China

34

Luxembourg

32

Spain

24

Top Investor types

Investor Type

$ Millions

Private VC – US

672

Mutual/Hedge Fund – US

385

Government – CDN

307

Private VC – CDN

214

Mutal/Hedge Fund – CDN

179

Corporate VC – International

169

Family Office – CDN

136

Corporate VC – US

135

Private VC – International

113

Private Investors – US

102

Private Investors – CDN

102

All Other Types

386

Summary report
Summary report can be downloaded from financings.ca website:  https://www.financings.ca/reports/

Methodology
Included

  • Equity and quasi-equity investments in companies directly.

Excluded

  • Secondary transactions (investor/shareholder exit events) in which companies received no money.
  • Acquisition for expansions (M&As)
  • PE transactions
  • Financing by foreign headquartered/domiciled companies with Canadian subsidiaries.

Rémillard Consulting Group (RCG)
Rémillard Consulting Group (RCG) is a unique, Ottawa-based, bilingual consulting firm specializing in providing private sector, government & trade association clients with creative, research-grounded solutions to business issues and public policies involving the Canadian financial services industry. For more information: [email protected]

CPE Analytics
With 108,900 financing transactions, and growing continuously and rapidly to its all Canadian Financings database, CPE Analytics is Canada’s undisputed leader in financing intelligence.  We provide comprehensive, verified, unbiased and unmatched insights and intelligence on private and public financings, initial public offerings (IPOs), M&As, professional investment firm fundraising activities.

We cover all aspects of VC information, not limited to but including Canada’s only information on VC firm fundraising, VC funding sources (where all the VC came from and from which types of investors).

CPE Analytics is the data analytics division of CPE Media & Data Company.  More Info: https://cpeanalytics.cahttps://financings.ca

CPE Media & Data Company
Founded by Canada’s the most experienced private capital and financing research experts, CPE Media & Data Company is Canada’s leading all financing news and intelligence provider. More information: https://cpecompany.ca/

SOURCE CPE Media & Data Company

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