Canada's startup ecosystem is rapidly growing, with significant activity in cities like Toronto, Vancouver, and Montreal. As of 2023, Canada hosts around 10,000 startups, supported by a favorable business environment and government incentives such as the Scientific Research and Experimental Development (SR&ED) tax credit. In 2022, Canadian startups attracted approximately CAD $10 billion in venture capital funding, underscoring the country's robust entrepreneurial landscape.
Size of the Market
As of 2023, Canada's startup ecosystem comprises about 10,000 startups. The market has shown substantial growth, with venture capital investments reaching CAD $10 billion in 2022. This impressive financial influx highlights the ecosystem's capacity for expansion and innovation, attracting entrepreneurs and investors alike. The diverse range of industries represented within the Canadian startup landscape further enhances its market size and potential.
Key Strengths
Canada's startup ecosystem is characterized by several key strengths, including a high quality of life, a diverse and skilled workforce, and robust support for innovation and research. The country excels in areas such as artificial intelligence (AI), clean technology, and biotechnology. These strengths are bolstered by world-class educational institutions and a strong emphasis on R&D, positioning Canada as a competitive player in the global startup arena.
Major Hubs
Toronto, often dubbed 'Silicon Valley North,' is a major hub for tech startups, particularly in AI and fintech. Montreal boasts a vibrant AI research community, contributing significantly to advancements in machine learning and related fields. Vancouver is renowned for its expertise in software development and gaming. These cities collectively drive Canada's innovation, making substantial contributions to the country's economic growth and technological advancements.
Emerging Hubs
Beyond the major cities, emerging hubs like Ottawa, Calgary, and Waterloo are gaining traction. Ottawa is noted for its strength in telecommunications and software, Calgary for its focus on energy and cleantech, and Waterloo for its burgeoning tech scene and strong ties to academic institutions. These emerging hubs are expanding Canada's startup ecosystem, providing new opportunities and attracting a diverse talent pool.
Support Systems
Canada's startup ecosystem benefits from a robust network of accelerators, incubators, and co-working spaces. Notable initiatives like the MaRS Discovery District in Toronto and the Creative Destruction Lab in various cities provide startups with mentorship, resources, and access to capital. This supportive infrastructure is crucial for nurturing early-stage companies and fostering a collaborative entrepreneurial environment.
Challenges
Despite its strengths, the Canadian startup ecosystem faces challenges such as access to late-stage funding and a smaller market size compared to the U.S. Additionally, navigating regulatory frameworks and attracting international talent can be hurdles for startups. Addressing these challenges requires strategic investments and policy support to sustain growth and competitiveness in the global market.
Opportunities and Future Outlook
Canada's strategic location and trade agreements offer startups significant opportunities for international expansion. The emphasis on sustainability and green technology drives innovation in sectors like clean energy and environmental solutions. Continued investment in AI, biotechnology, and other emerging technologies positions Canada for sustained growth. The future outlook for Canada's startup ecosystem is promising, with strong potential to play a pivotal role in the global innovation landscape.
Resilience and Adaptability
The Canadian startup ecosystem demonstrates remarkable resilience and adaptability, essential for navigating global economic shifts and market dynamics. The country's multicultural society and diverse talent pool foster a rich environment for innovation. As Canada continues to invest in its entrepreneurial infrastructure and support systems, it is well-equipped to handle future challenges and capitalize on new opportunities, ensuring sustained growth and success.
How to connect with Angel Investors in Canada?
Top Angel Investors
Canada's startup ecosystem is supported by numerous influential angel investors who provide crucial early-stage funding and mentorship. Notable figures include Mike Volker, a prolific angel investor with investments in over 100 startups, and Dan Martell, known for his investments in tech and SaaS companies. These investors typically contribute between CAD $25,000 and CAD $500,000 per deal, offering not only capital but also strategic guidance and industry expertise, which are vital for the growth and development of nascent companies.
Leading Venture Capital Firms
Leading venture capital firms in Canada play a critical role in driving the growth of startups. Firms such as BDC Capital, Real Ventures, and Inovia Capital are at the forefront, providing substantial funding to high-growth companies. BDC Capital, for instance, has invested in over 700 companies, supporting a wide range of sectors including cleantech, healthcare, and ICT. These firms typically engage in Series A to Series C funding rounds, with investment sizes ranging from CAD $1 million to CAD $50 million, facilitating significant scaling opportunities for startups.
Investment Size and Scope
The investment size and scope in Canada's startup ecosystem vary widely, catering to different stages of business growth. Early-stage investments, often provided by angel investors, range from CAD $25,000 to CAD $2 million. For growth-stage companies, venture capital firms offer larger funding rounds, typically between CAD $5 million and CAD $50 million. The scope of these investments spans various sectors, including AI, biotechnology, fintech, and cleantech, reflecting the diverse and dynamic nature of Canada's entrepreneurial landscape.
Number of Investments
Canada's venture capital and angel investment activity are robust, with a significant number of deals annually. In 2022, over 600 venture capital deals were recorded, amounting to approximately CAD $10 billion in investments. This high level of activity underscores the vibrancy of the Canadian startup ecosystem, with both angel investors and venture capital firms actively seeking out and funding promising startups across a broad spectrum of industries.
Future Outlook of the Investment Market
The future outlook for Canada's investment market is highly optimistic. With continued emphasis on innovation and technology, sectors such as AI, biotechnology, and clean technology are expected to drive substantial growth. Government support through initiatives like the SR&ED tax credit further bolsters the ecosystem. As global interest in sustainable and innovative solutions increases, Canada's startups are well-positioned to attract significant international investments, fostering an environment ripe for continued expansion and success.
Support and Mentorship
Support and mentorship are critical components of Canada's startup ecosystem. Angel investors and venture capitalists often provide more than just financial backing; they offer strategic advice, industry connections, and operational support. Programs like MaRS Discovery District in Toronto and Creative Destruction Lab across various cities enhance this support, offering structured mentorship, resources, and access to capital. This comprehensive support system helps startups navigate early challenges and scale effectively.
Government and Institutional Support
The Canadian government and various institutions play a pivotal role in nurturing the startup ecosystem. Initiatives such as the SR&ED tax credit and the Canada Small Business Financing Program provide substantial financial support and incentives. Additionally, organizations like Innovate Canada and provincial programs offer grants, loans, and advisory services. This extensive support infrastructure is vital for fostering innovation, reducing financial barriers, and promoting sustainable growth within the startup community.
Conclusion
Canada's startup ecosystem is bolstered by top angel investors, leading venture capital firms, and extensive support systems. With a diverse range of investment sizes and scopes, the market is poised for significant growth. The future outlook remains positive, driven by innovation, government support, and a collaborative environment. As Canada continues to attract global investments and foster entrepreneurial talent, it stands to become a key player in the global startup landscape, contributing to advancements across various high-growth sectors.
Case Studies: Successful Funding Rounds with Angel Investors on Angels Partners
Patrick Lor serves as Managing Partner at Panache Ventures. Lor also serves as Partner at 500 Startups Canada. He helped pioneer the microstock industry, as co-founder of iStockphoto, the world's first crowd sourced stock photography community. Upon his departure, the company was selling over 12 million images annually, and was sold to Getty Images for US$50 million in 2006. Most recently, he was head of North American operations for Fotolia, a stock photography community backed by private equity firm KKR. Patrick is also active in the technology startup ecosystem as an advisor, mentor, angel investor, teacher, and community leader. Organizations he contributes to include: thea100.org, thec100.org, democampcalgary.com, University of Calgary, Mount Royal University, Highline, and FounderFuel. He also served as Advisor at iNovia Capital.
Alex Kolicich serves as Co-Founding Partner at 8VC. Prior to joining 8VC, He is a Board Member at Senti Bio. He was a Partner at Formation 8. He is also a Board Member and Advisor at Chatous. He serves as Advisor at Street Contxt. Previously, he served as Principal at Mithril Capital Management. Previously, Kolicich worked as an engineer and early-product advisor at Clarium, Palantir, and Google. He was an early member of the Clarium Capital quantitative engineering team and close advisor for the early Palantir team; advising on product design and contributing to the product. At Google Research, Kolicich worked on Google Street-Views before and during launch. Preceding Street-Views, also at Google, he worked on the development and launch of the Google Checkout product. He received a B.SE in Software Engineering from the University of Waterloo and a Masters in Econometrics from the University of Toronto.
Zak Schwarzman
Investing in PropTech • Real Estate (& Const...
New York, U.S.A. - Canada
Previous Investments
• Latchel:
$4380000 (Early stage VC)
• Hoozip:
$250000 (Seed Round)
• WeSmartPark:
$250000 (Seed Round)
• Travtus:
$250000 (Seed Round)
• BlocPower:
$250000 (Seed Round)
• Streamline:
$250000 (Seed Round)
• OnSiteIQ:
(Seed Round)
• Jabbrrbox:
• The Lieu:
• Jones:
$4600000 (Seed Round)
• Sheltr:
$3200000 (Seed Round)
• Connect Homes:
$11000000 (Series A)
• Attentive:
$1000000 (Seed Round)
• Proper:
$3300000 (Seed Round)
• HqO:
$6600000 (Seed Round)
• Blueprint Power:
$3500000 (Series A)
• Spacious:
$9100000 (Series A)
• Flo Technologies:
$7800000 (Series A)
• HomeLight:
$40000000 (Series B)
• Backbone Labs, Inc.:
(Convertible Note)
• Obie:
(Pre Seed Round)
• Kwant.ai:
(Pre Seed Round)
• Urbint:
(Series A)
• Side:
$1300000 (Seed Round)
• Suiteness:
(Seed Round)
• Dynasty.com:
(Seed Round)
• Juno:
(Series A)
• Zeus Living:
$2600000 (Seed Round)
• Jetty:
$4000000 (Seed Round)
• Notion, a Comcast Company:
(Seed Round)
• Avail:
$750000 (Seed Round)
• Bowery:
$1600000 (Seed Round)
• Ravti:
(Seed Round)
• Enertiv:
$550000 (Angel Round)
• Radiator Labs, Inc:
$220000 (Seed Round)
• Milo:
$950000 (Seed Round)
• Tongo:
$7000000 (Seed)
• Enkasa:
$3000000 (Seed)
• Higharc:
$21000000 (Series A)
• Till:
$8000000 (Seed)
• Till:
(Seed)
• Briq:
$10000000 (Series A)
• Briq:
$3000000 (Seed)
• Briq:
$3000000 (Seed)
• Vergesense:
$9000000 (Series A)
• Avvir:
$200000 (Seed)
• PadSplit:
$3000000 (Seed)
• Workframe:
$10000000 (Series B)
• Eave:
(Series A)
• Spruce:
$2000000 (Seed)
• Ergeon:
(Funding Round)
• Bizly:
$3000000 (Seed)
Zak Schwarzman
New York, U.S.A. - Canada
Investing In
PropTech • Real Estate (& Construction) • Woman Focused
Description
All PropTech, all the time.
Principal @gotham-ventures
Previously @canaan-partners @aol-ventures @learn-capital
@kauffman-fellows-program @insite Fellow
@columbia-business-school MBA
Andrew Parker
Investing in Software (Web Marketplace Saas..) &b...
Boston , San Francisc..., U.S.A. - Canada
Previous Investments
• Confirm:
$6000000 (Series A)
• Guide:
$8000000 (Seed)
• AllHere Education:
$8000000 (Series A)
• Carta:
$30000000 (Series D)
• Carta:
$42000000 (Series C)
• Carta:
$17000000 (Series B)
• Nylas:
$16000000 (Series B)
• Panorama Education:
$16000000 (Series B)
• Panorama Education:
$12000000 (Series A)
• Particle:
$20000000 (Series B)
• Panjo:
$5000000 (Series A)
• Panjo:
$2000000 (Seed)
• Socratic:
$6000000 (Series A)
• Socratic:
$2000000 (Seed)
• Kik:
$38000000 (Series C)
• Kik:
$20000000 (Series B)
• Kik:
$8000000 (Series A)
• Quantopian:
$15000000 (Series B)
• Quantopian:
$7000000 (Series A)
• Quantopian:
$2000000 (Seed)
• BloomNation:
$6000000 (Series A)
• BloomNation:
$2000000 (Seed)
• Timehop:
$10000000 (Series B)
• Timehop:
$3000000 (Series A)
• Timehop:
$1000000 (Seed)
• Cover:
$6000000 (Series A)
• Upworthy:
$8000000 (Series A)
Andrew Parker
Boston - San Francisco Bay Area - California, U.S.A. - Canada
Investing In
Software (Web Marketplace Saas..) • CleanTech
Description
Andrew Parker serves as General Partner at Spero Ventures. He joined the investment team in June 2010. He is an Angel Investor. He was a member of the investment team at Union Square Ventures for four years, first as an Analyst and later as an Associate. During that tenure, he supported the partners as they developed their portfolio from seven to thirty names, and sourced the investment opportunities in Heyzap and Foursquare. Prior to Union Square Ventures, Parker was a Producer at Homestead Technologies where he designed web interfaces, managed the realization of the designs through the dev-cycle, and conducted user experience testing. Prior to Homestead, he worked for Groupspace.org as a Developer on a web service for asynchronous online deliberation, built on the LAMP stack. A graduate from Stanford in 2005, Parker received his B.S. in Symbolic Systems, which is a hybrid of Computer Science and Cognitive Psychology.
David Mort
Investing in FinTech (& Financials services) &bul...
Most Interested In
New computing technologies (ML/AI, decentralization, sensor fusion, ...) applied to "traditional" industries, computational bio, decentralized services and governance.
Not Interested In
Consumer, gaming, startups not in the US and Canada.
Jennifer Jordan
Investing in BioTech • Businesses Solutions ...
Boston , New York , C..., U.S.A. - Canada
Previous Investments
• Techstars Future of Longevity:
• PickAxes & Shovels:
• ownerIQ:
(late stage)
• Harvest Automation Inc.:
(mid stage)
• Golden Seeds:
(late stage)
• Wells Fargo Securities, LLC:
• Black & Company, Inc.:
• Tulen Boston, LLC:
• Riff Analytics:
$25000 (Seed)
• Floodlight:
$120000 (Pre Seed)
• Migrations.ml:
$120000 (Pre Seed)
• gravityAI:
$120000 (Pre Seed)
• LittleNewt:
$120000 (Pre Seed)
• Arch:
$810000 (Pre Seed)
• Humanitru:
$120000 (Pre Seed)
• Julius Technologies:
$120000 (Pre Seed)
• Nossa Data:
$410000 (Pre Seed)
• Avenify:
$120000 (Pre Seed)
• Compt:
(Pre-Seed)
• Spiro.AI:
$2000000 (Seed)
• Spiro.AI:
$3000000 (Seed)
• FairMarkIT:
(Seed)
• ClearGov:
$3000000 (Seed)
• ClearGov:
$1000000 (Seed)
• ClearGov:
(Seed)
• Spiro Technologies Inc:
(Seed)
• MachineMetrics:
(Seed)
Jennifer Jordan
Boston - New York - Cambridge - Washington - Miami - Baltimore - Toronto (Ontario) - Massachusetts, U.S.A. - Canada
Managing Director at Techstars, Female Founders First with Barclays and Techstars
Managing Director @golden-seeds. Founded @reed-college-start-up-lab. Worked at @massventures
Linked In Description:
As an early stage investor, strategic advisor, and board member. I have worked on everything from early internet search solutions and web analytics to robotics and software used to design semiconductors. I spend most of my time on b2b software - right now on AI Trust & Transparency. My most recent investments leverage the power of data and automation to transform industries. They span synthetic biology (Ginkgo Bioworks), data transparency (ClearGov), Artificial Intelligence and Machine Learning for sales optimization (Spiro.ai), and Industrial IOT for advanced manufacturing (MachineMetrics).
I am also a global executive versed in bridging corporate and entrepreneurial disciplines. Successfully incubated and advised start-up ventures, including seed round, IPO and turnaround. Responsible for millions in valuation, earnings and commission revenue. Grown platforms from the ground up through successful exit. Experience identifying and advising successful teams delivering breakthrough technology. Strategic thinker with exceptional knowledge of market trends and data. Change driver who impacts and imparts large-scale decisions and effective execution.
Highlights and Accomplishments:
• Built Black & Company internet research platform from the ground floor into one of the most profitable and successful businesses, generating $2M in commission revenue annually.
• Grew research platform at Wells Fargo Securities to generate more trading volume than the firm’s other analysts combined, resulting in commission revenue of $4M annually.
• Led seed stage investment in Ginkgo Bioworks resulting in appreciation based on most recent financing of 5x.
• Orchestrated transparent global investor relations program that directly contributed to $350M increase in market capitalization of publicly traded software company.
Deepak Gupta
Investing in Software (Web Marketplace Saas..) &b...
San Francisco Bay Area, Israel - Global: U.S.A., Australia, Canada, Germany, U.K., Israel, France, Italy, Spain, Netherlands, Belgium, Switzerland, Denmark, Finland, Luxembourg, Malta, Iceland
Previous Investments
• TetaVi:
$20000000 (Series A)
• SaNOtize:
$24000000 (Series B)
• Sotero:
$8000000 (Seed)
• MAOLAC:
$3000000 (Seed)
• BioLumic:
$14000000 (Series B)
• Mermade Seafoods:
$3000000 (Seed)
• Oriient:
$11000000 (Series A)
• Sequentify:
$7000000 (Seed)
• Rewire:
$25000000 (Series Unknown)
• Rewire:
$20000000 (Series B)
• JumpCloud:
$66000000 (Series F)
• Zippin:
$30000000 (Series B)
• Yoom:
$20000000 (Series A)
• MaterialsZone:
$6000000 (Series A)
• Edgybees:
$10000000 (Series A)
• OncoHost:
$8000000 (Series B)
• Superpedestrian:
$60000000 (Series Unknown)
• MigVax:
$12000000 (Series Unknown)
• MedAware:
$8000000 (Series A)
• MedAware:
$1000000 (Convertible Note)
• MedAware:
$1000000 (Series Unknown)
• Wave:
$10000000 (Series C)
• Peer39:
$500000 (Seed)
• Answers Corporation:
$1000000 (Series B)
Jonathan Medved
San Francisco Bay Area, Israel - Global: U.S.A., Australia, Canada, Germany, U.K., Israel, France, Italy, Spain, Netherlands, Belgium, Switzerland, Denmark, Finland, Luxembourg, Malta, Iceland
+1,358
