Canadian Venture Capital in 2025: The Full Picture

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

TORONTO, March 31, 2026 /CNW/ - Canadian venture capital (VC)^* totalled $9.13 billion from 598 financings in 2025, down slightly $9.25 billion reported in 2024.

Key Observations

Canadian Venture Capital Disbursements (where capital flowed to)

• 4th quarter surge driving 2025 investments
• Continuing of investment concentration in Ontario and Toronto Area
• Growth/late-stage investment inching closer to early-stage investments
• Shares of cleantech and life science investment continuing to drop

Canadian Venture Capital Funding Sources/Investors (where capital came from)

• US investors injecting almost 60% of total funding into Canadian companies
• US private VC continuing to be the primary Canadian VC funders
• Canadian governments reducing pace by 46%
• BC companies attracting largest share of US and international investments

Canadian Venture Capital Firm Fundraising

• 62 Canadian VC funds securing $3.52 billion in 2025
• Two BDC allocations ($700 million) and two Radical Ventures funds ($1,753 million) combined accounting for 70% of total VC fundraising

Canadian Venture Capital Exits

• No Canadian initial public offering (IPO) since 2021
• VC investors rely on secondary exits and reverse take-over transaction to generate liquidity

Canadian Venture Capital Law Firms

• Osler and Fasken leading all law firms in 2025 in number of companies and number of financings

"The venture capital investment and fundraising data for 2025 reveal trends that investors, companies and policymakers alike may find illuminating and, in some respects, worrisome. First, some 60% of VC investments were made by US parties in 2025 - the highest percentage since 2017. In other words, Canada's high-tech firms are increasingly dependent upon US capital - with all that that entails in today's world. Second, at the same time, investment levels from international sources have been dropping as a proportion of overall investments from 17% to 12%. This shows that the federal government's push to lure more foreign capital into Canada have not been particularly successful in the VC sphere.  Third, Ontario, particularly Toronto, dominates the VC space. Ontario investment dollars are six times the level in Quebec, which consequently, risks being left behind in funding the industries of tomorrow. A partial exception to this clustering in Ontario comes from British Columbia which is also outpacing Quebec by a healthy margin. Fourth, ICT, including AI, is crowding out other realms including Cleantech, Life Sciences and Agribusiness which may result in firms in these sectors directing their own capital raising efforts to other jurisdictions, particularly the US. Finally, fundraising for VCs has been abysmal, with two entities (BDC and Radical Ventures) alone accounting for 70% of all the capital raised by VCs in 2025. Put differently, 62 funds collectively raised $1.07 billion in 2025 - or an average of just over $17 million per fund.  Put together, the picture revealed by the data indicates a certain clustering around US capital, around Ontario, around ICT and around relatively few VC funds, and around exit transactions that are missing in action. The patient may not be in intensive care but may be headed for the emergency room." Richard Remillard, President of Rémillard Consulting Group (RCG)

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

Backed by Canada's only all financing database (116,800 financing transactions and growing daily), CPE Analytics is Canada's 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, including Canada's only intelligence on funding country (where VC funding came from) and investor type sources.

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

^* 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.

SOURCE CPE Media & Data Company

Contacts: Ted Liu, CPE Media & Data Company, 647-782-8818, [email protected]; Richard Rémillard, Rémillard Consulting Group (RCG), 613-715-3055, [email protected]