Canadian venture capital deals tumble to pandemic-era lows
Canadian venture capital deals have tumbled to levels not seen since the COVID-19 pandemic, according to a new report by the Canadian Venture Capital and Private Equity Association (CVCA).
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Investors poured $2.9 billion into 254 Canadian VC deals in the first six months of 2025, marking a 26 per cent decline in dollars invested and a 22 per cent fall in deal count compared to the same period last year, the report released on Wednesday said. It was the lowest first-half total since 2020. A sharp pullback in early-stage funding was a key factor in the decline.
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The information and communications technology (ICT) sector, which includes e-commerce, telecommunications, software and hardware startups, attracted the most VC investment in the first half of 2025, raising $1.39 billion across 115 deals.
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VC deployment slowed down across all sectors in the first half compared to the same period last year, with funding for the ICT and cleantech sectors reaching only 30 per cent and 17 per cent, respectively, of their total levels a year ago.
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Investors in the United States have long been key players in Canada's venture capital and startup ecosystem. In the first six months of 2025, however, their participation in Canadian VC deals dropped by three per cent compared to last year and by eight per cent compared to the all-time high reached in 2021.
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' Global trade tensions and similar market slowdowns in the U.S.' fueled the slump, said David Kornacki, director of data and product at the CVCA.
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Nevertheless, U.S. investors continued to dominate Canada's largest deals, participating in half of all mega-deals — those valued at $50 million and above. The most active foreign VCs in Canada in 2025 so far have been American, including the likes of Y Combinator LLC, Tidemark Management Co. LP and TCMI Inc., better known as Technology Crossover Ventures.
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Investor exit activity remained subdued in the first half of 2025. There were zero initial public offerings, marking two years since the last IPO of a VC-backed portfolio company in Canada.
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Cision Canada
15 minutes ago
- Cision Canada
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Toronto Sun
15 minutes ago
- Toronto Sun
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It's an industry bigger that the biggest in Ontario and yet the Carney Liberals are silent as China attacks our producers. Get the latest from Brian Lilley straight to your inbox Canola crop field in full blossom near Leader, Sask. Photo by Larry MacDougal / THE CANADIAN PRESS Canola, the yellow flowering plant that gives so much colour to prairie fields as you drive across the country, is worth more as an industry than auto, steel and aluminum combined. You wouldn't know that based on the actions, and lack of reactions, from the Carney government. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account China just slapped Canadian canola seed with a 75.8% tariff on top of existing tariffs of 109% on canola oil and canola meal. This is a product that has an economic impact of $43 billion per year for Canada's economy. You would think that this would result in outrage from Canadians, especially the Elbows Up Brigade that are forever lamenting Donald Trump's tariffs on Canadian steel, aluminum and auto production. There has been no statement from Prime Minister Mark Carney, his industry minister Melanie Joly has been silent and the statement from his ministers in charge of agriculture and international trade was weak at best. 'Canada is deeply disappointed with China's decision to implement provisional anti-dumping duties in its self-initiated investigation into imports of canola seed from Canada,' said a statement from ministers Heath MacDonald and Maninder Sidhu. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. China takes about $5 billion worth of canola products each year and is our second biggest export market after the United States. Is the Carney government refusing to take the same kind of strong stance they do with other industries because this is a product grown on the prairies, far from the Toronto-Ottawa-Montreal triangle that runs Canada's political and media establishment or is this because they can't scream Orange Man Bad and yell about Donald Trump? 'Of course,' Conservative Leader Pierre Poilievre said when asked if he thought the Carney government would have responded by now if China had tariffed an Ontario or Quebec product. 'I mean this, this Liberal government couldn't care less about the West. They disrespect its main industries,' Poilievre added, 'Liberals don't care about Western farmers and Western producers.' This advertisement has not loaded yet, but your article continues below. Poilievre asked why the federal government was standing behind the financing of the decision by the B.C. government to buy four ships from China. B.C. Ferries, an entity that is wholly owned by the British Columbia government is buying four new ferries from a state owned Chinese shipyard and the federal government is financing the deal. 'I believe the first thing we should do is cancel the billion dollar federal loan,' Poilievre said Thursday in Saskatoon. 'Mark Carney is giving a billion dollars of ship building contracts through a taxpayer funded loan to the Chinese government and the Chinese economy. That is crazy at a time when they're targeting our farmers.' Saskatchewan Premier Scott Moe was trying earlier this week, to no avail, to explain how important this crop is to Canada's economy. This advertisement has not loaded yet, but your article continues below. 'We've estimated about 12 million acres of canola seeded in Saskatchewan just this year,' Moe said. Read More 'To put this in context, this $43 to $45 billion canola industry, Canadian canola industry that we have employing just over 200,000 people, that is significantly larger than the steel industry, the aluminum industry and the car manufacturing industry combined, it's about the same size as the Canadian forestry industry, of which we saw significant supports for just this past week.' Despite their size, despite their impact on the economy, despite the jobs on the line, the canola industry hasn't seen any elbows go up, they haven't seen the supports offered to steel or forestry. The Carney government has been near mute on this file, in part I believe because they don't win enough seats in Western Canada, in particular Saskatchewan. Western alienation, western separatism is a real and growing issue and one that the Carney government needs to deal with. 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