Canada's Venture Capital Landscape 2025
Canada’s venture capital (VC) market had mixed results in 2024. Total VC investment activity increased, driven by growth-equity stage transactions and an increased interest in AI companies. The number of up rounds was also up versus 2023.
Exit activity, however, remained weak, with a continued IPO drought and a limited number of M&A deals. This had an effect on VC returns, with the net 10-year internal rate of return (IRR) dropping to 10%, widening the gap with the U.S. Foreign capital, particularly from the U.S., continues to play a crucial role in the Canadian VC ecosystem; current trade tensions is raising questions about the direction these investments will take in the future.
In this context, domestic investments to support Canadian innovation is more important than ever. With $11.5 billion in dry powder being held by Canadian investors, we continue to believe in the ecosystem’s resilience and it’s ability to spur the growth of Canadian champions. We remain ready to adjust or step up our support as needed.
You will discover
- Canadian VC market evolution compared with global trends.
- Deal volume, average deal value and capital deployment within the ecosystem.
- An analysis of active venture capital funds in Canada by sector, investment and fundraising activity.
