VC sluggish on multiple fronts in Q3, 2025
All dollar ($) figures in Canadian dollars unless otherwise noted.
TORONTO, Oct. 30, 2025 /CNW/ - Canadian venture capital (VC)* totalled $1.38 billion from 117 financings for third quarter (Q3) of 2025, down from $1.63 billion from 134 financings for Q2 2025, down 58% in disbursements ($3.27 billion) and 37% in financings (186) from Q3 2024.
For the first 9 months of 2025, 414 financings completed for $4.43 billion, down 41% and 30% in disbursements and financings from first nine months of 2024.
US investors, led by US VCs and hedge/investment funds, continued to lead investments in Canadian companies, accounting 54% of the total capital flowed directly to companies in first nine months of 2025, up from 52% in 2024 and just behind the highest level of 56% in 2021.
| ______________________________ |
| * 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. |
41 venture funds collectively raised $3.19 billion in the first nine months of 2025, primarily driven by two funds managed by Radical Ventures, which together accounted for 55% of the total fundraising or 72% of all private fundraising.
Key Observations
I. Ontario continues to lead all provinces
Companies from Ontario raised $2.33 billion in first nine months of 2025, representing approximately 53% of the total direct capital flow by all companies. BC, Quebec and Alberta companies trailed at distance, raising $904 million, $520 million and $360 million respectively.
II. Ontario, Manitoba and Nova Scotia attract most of US investments
US investments accounted for 54% of financing dollars in first nine months of 2025 nationally, ranging as high as 71% in Nova Scotia at provincial level. Most strikingly, US investments only comprised 19% of financing dollars in Quebec compared to 66% in both Ontario and Manitoba, and 55% in BC. Recent government decisions, such as the $200 million Fonds Impulsion with $50 million new capital allocated by the government of Quebec to Investissement Quebec, will likely further enhance the home bias of the investing scene in Quebec.
III. ICT, Biotech and Cleantech companies continue dominate
ICT, Biotech, Cleantech companies raised $2,341 million, $969 million and $708 million respectively for a combined amount of $4,017 million or 91% of the total disbursement for the first nine months of 2025. Financial companies raised $195 million or 4% of the total disbursements.
Among ICT companies, Internet software and AI companies attracted and $1,172 million and $586 million or 50% and 25% respectively 25%.
IV. Pre-seed and early-stage companies attract almost half of total capital
Pre-seed and early-stage companies attracted $288 million and $1,780 million respectively, together attracted approximately 47% of the total capital.
V. Secondary active exit mechanism
M&As continue to remain weak and IPO has been virtually closed to venture backed companies. Since the IPO by Coveo Solutions Inc. in November 2021, there was no venture-backed IPO in almost 4 years; there will be likely no VC-backed IPO in 2025.
Liquidity has been mostly generated by secondaries. Notable transactions include Clio's US $900 million fund round which was a predominately secondary transaction, and the pending Wealthsimple's up to $750 million funding round which includes up to $200 million in secondary.
VI. Canadian VC firm fundraising improving
41 Canadian VC funds raised $3,192 million, up drastically from $871 million by 29 VC funds in first half of 2025. 28 private funds collective raised $2,432 million, 72% of which were raised by two Radical Ventures managed funds. BDC Capital received additional $700 million allocation from parent company BDC.
"The Q3, 2025 and year-to-date data point to an ongoing slowdown in venture capital activity across different metrics as well as a continuation of observed patterns. With respect to the former, the sluggishness appears particularly in investing volumes and exits, the latter of which have been virtually non-existent. As for the established contours of venture capital in Canada, the long-noted dominant roles played by US investors nationwide and the unchallenged leading, position of Ontario, especially of Toronto, remain distinguishing features of the Canadian venture scene. Of note is what has not been happening - from the significant lack of US investment in Quebec companies to the striking underinvestment in defense and aerospace firms so far in 2025. Meanwhile, fundraising has become concentrated in but a tiny slice of venture capital funds, one specializing in AI and the other a federal government-owned entity. With nine months of data in hand, and absent a significant course correction, 2025 looks set to be a morose year for venture capital activity," commented Richard Rémillard, President of Rémillard Consulting Group (RCG).
First Nine Months 2025 Highlights
Top Cities/Areas
| |
# Financings |
$ Millions |
| Toronto Area |
126 |
2,109 |
| Vancouver Area |
60 |
877 |
| Montréal Area |
39 |
455 |
| Calgary |
59 |
274 |
| Winnipeg |
3 |
114 |
| Waterloo Area |
18 |
97 |
| Halifax Area |
18 |
88 |
| Ottawa |
26 |
80 |
| St. John's |
1 |
68 |
| Edmonton |
6 |
59 |
Top Canadian VC funding sources
Canadian companies attracted foreign funding from 50 countries or regions
| Country/Region |
1st 3Qs 2025 |
Ranking |
2024 |
| United States (USA) |
2,409 |
1 |
1 |
| Canada |
1,456 |
2 |
2 |
| Austria |
90 |
3 |
13 |
| Qatar |
55 |
4 |
not ranked |
| Hong Kong (HK) |
53 |
5 |
17 |
| United Kingdom (UK) |
51 |
6 |
4 |
| Cayman Islands |
49 |
7 |
20 |
| Luxembourg |
48 |
8 |
23 |
| Singapore |
45 |
9 |
21 |
| China |
34 |
10 |
5 |
| Spain |
25 |
11 |
25 |
| Japan |
14 |
12 |
6 |
| Monaco |
12 |
13 |
50 |
| Germany |
9 |
14 |
10 |
| Sweden |
9 |
15 |
9 |
Top Investor types
| Investor Type |
$ Millions (%)* |
| Private VC - US |
1,123 (25.4 %) |
| Mutual/Hedge Fund – US |
464 (10.5 %) |
| Private VC – Canadian |
408 (9.2 %) |
| Corporate VC – US |
350 (7.9 %) |
| Government – Canadian |
324 (7.3 %) |
| Family Office – Canadian |
193 (4.4 %) |
| Mutal/Hedge Fund – Canadian |
181 (4.1 %) |
| Private VC - International |
181 (4.1 %) |
| Private Investors – Canadian |
178 (4.0 %) |
| Private Investors – US |
177 (4.0 %) |
| Corporate VC – International |
174 (3.9 %) |
| Corporate VC – Canadian |
144 (3.3 %) |
| Institutional VC – Canadian |
123 (2.8 %) |
| All Other Types |
406 (9.2 %) |
| TOTAL |
4,425 (100 %) |
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/
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]
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