News Summary

The Canadian venture capital (VC) market displayed mixed signals in Q3 2025, with a rise in growth investment contrasted by a continued lag in early-stage VC activity. According to the Canadian Venture Capital & Private Equity Association (CVCA), $1.8 billion CAD was deployed across 123 technology startup deals, indicating a selective yet confident market. The average VC deal size rose to $14.7 million, a 20% increase from the previous quarter, with mega-deals accounting for 60% of all investments. Despite a 40% decline in total investment compared to the same period last year, the market is considered stable, returning to pre-pandemic levels. The private equity market also remained strong, with $25.4 billion invested across 151 deals in Q3. However, early-stage investment continues to struggle, with $650 million deployed across 219 pre-seed and seed deals, consistent with 2020 levels. The decline in early-stage investment is partly due to tighter fundraising conditions, correlating with a drop in startup formation. Sector-wise, agribusiness and life sciences remain strong, while cleantech investment has declined.