News Summary

In the first half of 2025, Canadian venture capital (VC) investment, particularly at the pre-seed and seed stages, continued to decline as reported by the Canadian Venture Capital & Private Equity Association (CVCA). A total of $297.2 million was invested across 133 pre-seed and seed deals, marking a 16% decrease in investment and a 28% drop in deals compared to the same period in 2024. This decline mirrors a broader trend in the Canadian VC market post-pandemic. Despite a slowdown, Canada’s pre-seed and seed investment levels are still expected to surpass pre-pandemic averages. The CVCA noted that artificial intelligence (AI) accounted for the largest share of investment, followed by sectors like construction tech and SaaS. PitchBook data indicates a slightly different picture, with $470 million CAD invested across 143 deals, suggesting potential discrepancies in reporting. Toronto remained a key hub, contributing significantly to Canada’s tech funding, helping the country rank 6th globally for tech investment in H1 2025.