News Summary

At this year’s Startupfest in Montréal, Canadian venture capitalists (VCs) discussed the ongoing challenges in the VC fundraising market. Despite predictions of a gradual recovery last year, VCs are still facing a tough fundraising environment due to a persistently cool exit market and limited liquidity. The RBCx report from July highlighted a significant decline in Canadian VC fundraising, marking 2024 as one of the worst years in a decade. Experts noted that factors such as very few exits, low liquidity, and disappointing returns are contributing to the difficulties faced by general partners (GPs) and limited partners (LPs). However, there is optimism that conditions will improve, with emerging managers seeing a potential upswing and more institutional players engaging with new fund managers. The current environment has prompted discussions on the importance of a dedicated exit strategy to infuse more capital into the ecosystem.