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
Consumer subscription businesses, consumer-focused digital health, clean consumer products that sell directly to the consumer, applied computer vision.
Not Interested In
Advertising technology (adtech), marketing technology (martech), and sales enablement technology. We have good coverage in all those areas already.
Charles Hudson is the Founder and serves as Managing Partner at Precursor Ventures. He also serves as a Board Member & Advisor at Tulip Retail. He also serves as Venture Partner at Uncork Capital. He serves as the Interim Chief Executive Officer & Board Member at Kahuna. He also serves as Venture Advisor at 500 startups. He was the co-founder and CEO of Bionic Panda Games, a mobile games startup based in San Francisco, CA. Prior to joining SoftTech VC and co-founding Bionic Panda Games, he was the vice president of business development for Serious Business until the company was acquired by Zynga in February 2010. Prior to Serious Business, he was the senior director for business development at Gaia Interactive, an online hangout and virtual world for teens. Prior to Gaia, he worked in New Business Development at Google and focused on new partnership opportunities for early-stage products in the advertising, mobile and e-commerce markets. He also serves as a board member at Lightside Games and Special Guest App. He holds an MBA from the Stanford Graduate School of Business and a B.A. in Economics and Spanish from Stanford University. He Founded and served as Managing Partner at 3rd Power. He also served as Consultant at WebMediaBrands.
We're the earliest investors you'll ever meet, and never pass because you're 'too early'. We embrace the pre-seed.
We are hot on Voice, Market Networks, Industrial Tech, NewSpace, and anything Frontier -- wonky enough for us to spend the time to learn and ramp up with you.
We seek founders with Deep Market Insights - you know the problem cold and the solution is bursting from you.
Not Interested In
No discovery apps. No FinTech. No consumer (except for marketplaces). No international, please.
No Seed Prime, Post Seed, Series A rounds.
Garrett Goldberg
Investing in Software (Web Marketplace Saas..) &b...
Los Angeles , Toronto..., U.S.A. - Canada
Previous Investments
• Neighborly:
$25000000 (Early stage VC)
• buildingconnected:
$22000000 (Later stage VC)
• Node:
$10800000 (Early stage VC)
• SnapTravel:
$8000000 (Early stage VC)
• New Culture (Dairy):
$3500000 (Early stage VC)
• Airbanq:
$3350000 (Seed Round)
• Identify3D:
$3250000 (Seed Round)
• Nubix:
$2700000 (Seed Round)
• Voltaiq:
$2000000 (Seed Round)
• RBC Signals:
$1500000 (Seed Round)
• F0cal:
$1150000 (Seed Round)
• Unchained Logistics:
• InnerPlant:
• Bee Partners.:
(late stage)
• Cohort Intelligence:
• Skydeck | Berkeley:
(early stage)
• Idaho Center for Sustainable Agriculture:
• Boise Angel Alliance:
• GSquare Companies:
• Koop Technologies:
$4000000 (Seed)
• Koop Technologies:
$3000000 (Seed)
• Wellplaece:
$6000000 (Seed)
• Knowde:
$72000000 (Series B)
• Knowde:
$14000000 (Series A)
• Knowde:
$4000000 (Seed)
• Knowde:
$1000000 (Pre Seed)
• Florence Healthcare:
$80000000 (Series C)
• Florence Healthcare:
$7000000 (Series B)
• Florence Healthcare:
$2000000 (Seed)
• Geosite:
$5000000 (Series A)
• AxleHire:
$11000000 (Series A)
• Iris Automation:
$500000 (Pre Seed)
Garrett Goldberg
Los Angeles - Toronto (Ontario) - Berkeley - San Francisco Bay Area - Boise City - Atlanta - New York - Seattle - Austin - South San Francisco - California, U.S.A. - Canada
Machine Intelligence
Co-bots
Market Networks in overlooked verticals
AI to improve our healthcare system
Not Interested In
Consumer apps
Founder @direct-local-food, @gsquare-companies • Works at @bee-partners, @boise-angel-alliance • Studied at @stanford-university, @university-of-washington
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.
Christian Lassonde
Investing in FinTech (& Financials services) &bul...
Salt Lake City , New ..., Canada - U.S.A.
Previous Investments
• Kira Talent:
$3200000
• Goose (Insurance Brokers):
$2250000
• Finaeo Inc.:
• PerfectlySoft Inc.:
(early stage)
• Sensibill Inc.:
(early stage)
• Impression Ventures:
(early stage)
• The Next 36:
(early stage)
• Virtual Greats:
• Millions of Us:
• Orbital Fire:
• 401GO:
$2000000 (Seed)
• Finaeo:
$4000000 (Seed)
• Finaeo:
$2000000 (Pre Seed)
• Sensibill:
$17000000 (Series A)
• Sensibill:
$2000000 (Seed)
• Wealthsimple:
$2000000 (Seed)
• Wealthsimple:
(Seed)
Christian Lassonde
Salt Lake City - New York - Toronto (Ontario) - Toronto (), Canada - U.S.A.
Investing In
FinTech (& Financials services) • Payments
Description
Fintech VC - that’s it. Super boring.
Fintech VC- that’s it. Super boring.
Most Interested In
Companies disrupting all aspects of financial services with technology (fintech)
Not Interested In
Anything that is not fintech
Christian Lassonde is the Founder and serves as Managing Partner at Impression Ventures. He serves as a Board member of Finaeo. Lassonde is a tech founder and CEO, having built and sold Virtual Greats, a luxury online IP rights broker, and Millions of Us, a digital agency. He has also taught high-growth technology entrepreneurship at The Next 36 to over 30 companies. Those companies have gone on to build successful products and raise millions of dollars in follow-on financing. Christian spent a decade in San Francisco selling and building software for Second Life, LucasArts and Electronic Arts to customers Sony, Nike, Warner Brothers, General Motors, Coke, Intel and many more Fortune 500 companies. He holds an MBA from the USF, a BESc in computer engineering and a BSc in computer science from Western. Christian is currently Vice-Chair of SickKids Foundation, Chair of the TFS Foundation, serves on the Fintech Advisory Council for the Ontario Securities Commission, and a former Governor of the Board of Western University.
Alan MacIntosh is a Co-Founder and serves as Partner at Real Ventures. He is also an Angel Investor.
He serves as Mentor and is a Co-Founder at FounderFuel. MacIntosh also serves as Managing Partner at Acta Wireless. MacIntosh has over 20 years of international business experience starting in oil exploration with Schlumberger. He later undertook a product management role with Hewlett-Packard, before joining Canada's Telesystem group in 1990, where he established TIW's mobile operations in eight countries including the UK where he managed operations for three years. Previously, he served as Board Member at Fabric Software. In 1997, Alan moved to sister company Microcell and co-founded GSM Capital, the first global wireless fund, backed by nine of the world's leading operators. Alan currently sits on the boards of WaveMetrix, Millennial Media, Cellfish Media and Montreal Start-up. A native of Scotland, he holds a BSc (Hons) in Offshore Engineering from Heriot-Watt University and MBA from INSEAD.
Shruti Gandhi
Investing in Software (Web Marketplace Saas..) &b...
San Francisco Bay Are..., U.S.A. - Canada
Previous Investments
• Mobilize (Application Software):
$800000
• Placer:
$4000000 (Early stage VC)
• Capsule (Multimedia and Design Software):
$2000000 (Seed Round)
• Happyrobot:
(Pre Seed)
• Capsule:
$6000000 (Seed)
• Capsule:
$2000000 (Pre Seed)
• Terrantic:
$2000000 (Pre Seed)
• OpsVerse:
(Pre Seed)
• SliceUp:
(Pre Seed)
• Precanto:
$4000000 (Pre Seed)
• Intentomatic:
(Pre Seed)
• Chisel:
$2000000 (Pre Seed)
• Hermis:
$2000000 (Seed)
• Uniform:
$33000000 (Series A)
• Uniform:
$2000000 (Seed)
• Zingly:
$1000000 (Pre Seed)
• bytewax:
(Pre Seed)
• Runway:
(Pre Seed)
• Cast Corporation:
(Series Unknown)
• Mapistry:
$1000000 (Seed)
• Mapistry:
$2500000 (Seed Round)
• Mapistry:
$3000000 (Seed)
• Rad AI:
$8000000 (Seed)
• Blumira:
$3000000 (Seed)
• Era Software:
$5000000 (Seed)
• Era Software:
$2000000 (Pre Seed)
• Productiv:
$20000000 (Series B)
• Productiv:
$8000000 (Series A)
• Almanac:
(Pre Seed)
• Overview.ai:
$3000000 (Seed)
• EmpInfo:
(Seed)
• Xwing:
$4000000 (Seed)
• Openprise:
$3000000 (Seed)
• Openprise, Inc.:
(Seed Round)
• Zendar:
(Seed)
• Pulse:
(Seed)
• Pulse Q&A:
(Seed Round)
• Solugen:
$4000000 (Seed)
• Placer.ai:
(Seed)
• Placer.ai:
(Pre Seed)
• Blendid:
$700000 (Convertible Note)
• Simility:
$3000000 (Seed)
• Mobilize:
$800000 (Convertible Note)
• Mobilize:
$1000000 (Seed)
• Leapfin:
(Seed)
• Vue.ai:
(Seed)
Shruti Gandhi
San Francisco Bay Area - California, U.S.A. - Canada
Shruti Gandhi is the Founder and serves as Managing Partner at Array Ventures. She is an Angel Investor. Shruti brings a strong mix of operating and investing experience. Previously, Shruti was an early stage venture capital investor at True Ventures, Samsung Electronics, Lightbank, HighBAR Partners, and the i2A Fund. Shruti started working with Machine Learning algorithms while working on her master's thesis in computer science from Columbia University on understanding user behavior on instant messaging platforms. While at IBM she worked on self learning algorithms that detected user location based on IP addresses, which she later incorporated into the Lotus Sametime product. Later, her company Penseev helped users make better connections with their friends based on social data. When not investing, she is hacking on some app or thinking about ways she can be in many places at one time. Shruti also has an MBA from the University of Chicago, where she polished her finance skills before making the switch from engineer/founder to investor.
Mark Anderson
Investing in Software (Web Marketplace Saas..) &b...
Own a Hedge Fund that is constantly looking for businesses that have great growth potential
Linked In Description:
Investment Banking for Tech companies in Enterprise and Consumer segments.
A veteran in Enterprise, Mobile and Digital Media, Corporate Development VR, Voice Powered AI, Smart Devices, Mobile Advertising, Gaming, Artificial Intelligence, and IoT. Extensive deal-making with Mobile Carriers, Major Brands, Media Companies, Advertisers, Enterprise Sales, and Business Development, OEM's, Internet of Things (IoT) and Venture Capital. Entrepreneur, Angel Investor.
Craig Hunter
Investing in Software (Web Marketplace Saas..) &b...
Toronto Ontario , New..., Canada
Previous Investments
• Properly:
$8500000 (Series A)
• Properly:
$8500000 (Series A)
• Lambda School:
$14000000 (Series A)
• Lambda School:
$14000000 (Series A)
• TruckMap:
(Pre Seed Round)
• TruckMap:
(Pre Seed Round)
• Lime:
$50000000 (Series B)
• Lime:
$50000000 (Series B)
• Carta:
$42000000 (Series C)
• Carta:
$42000000 (Series C)
• SALIDO:
$2000000 (Seed Round)
• SALIDO:
$2000000 (Seed Round)
• Ritual:
$1500000 (Seed Round)
• Ritual:
$1500000 (Seed Round)
• Notch:
(Seed Round)
• Notch:
(Seed Round)
• Relay:
$700000 (Seed Round)
• Relay:
$700000 (Seed Round)
• Uber:
$11000000 (Series A)
• Uber:
$11000000 (Series A)
• Aside:
$17000000 (Series A)
• Fable:
$3000000 (Seed)
• Sanzo:
$1300000 (Seed Round)
• Darwin Homes:
$2000000 (Seed +)
• Firefly:
$30000000 (Series A)
• Airhouse:
$2000000 (Pre Seed Round)
• DroneSeed:
(Seed)
• Clubhouse:
$2000000 (Seed)
• Clubhouse:
(Pre-Seed)
• Superhuman:
(Seed)
• Almanac:
(Funding Round)
Craig Hunter
Toronto Ontario - New York New York - Austin, Canada
Most Interested In
Fintech, proptech, real estate, marketplaces, B2C, B2B, B2B2C, and companies shaking up super antiquated industries. The unsexier the better.
Not Interested In
Hardware, biotech.
GM at @ritual-2 // Past: CEO @bitmakerhq (acq by @general-assembly), #50 at @uber. Guest lecturer @ivey-business-school, Canadian startup cheerleader/advisor.
Seth Winterroth
Investing in Businesses Solutions • Consumer
Tel Aviv , London , N..., U.S.A. - Canada - U.K. - Israel
Previous Investments
• Enovix:
• Tenstorrent Inc.:
(early stage)
• SkyRyse:
(early stage)
• Clearpath Inc.:
• Eclipse Ventures:
(early stage)
• Kindred.ai:
(early stage)
• Swift Navigation:
(mid stage)
• GE Ventures:
(early stage)
• True Anomaly:
$100000000 (Series B)
• True Anomaly:
$17000000 (Series A)
• Oxide Computer Company:
$44000000 (Series A)
• ForSight Robotics:
$55000000 (Series A)
• ForSight Robotics:
$10000000 (Seed)
• RideCo:
$16000000 (Series A)
• Wayve:
$200000000 (Series B)
• Third Wave Automation:
$40000000 (Series B)
• Third Wave Automation:
$15000000 (Series A)
• Impossible Aerospace:
$9000000 (Series A)
• Impossible Aerospace:
$2000000 (Seed)
• 6 River Systems:
$25000000 (Series B)
• 6 River Systems:
$15000000 (Series A)
• 6 River Systems:
$6000000 (Seed)
• 6 River Systems:
$6000000 (Seed)
• Lighthouse:
$17000000 (Series Unknown)
• Wiivv:
$4000000 (Series A)
• Wiivv:
$4000000 (Seed)
• Clearpath Robotics:
$30000000 (Series B)
• Clearpath Robotics:
(Series A)
• OTTO Motors:
$30000000 (Series B)
• Marble:
(Seed)
• Teabot:
$250000 (Seed)
Seth Winterroth
Tel Aviv - London - New York - Toronto (Ontario) - Boston - San Francisco Bay Area - Palo Alto - California, U.S.A. - Canada - U.K. - Israel
Investing In
Businesses Solutions • Consumer
Description
Partner at Eclipse Ventures
Partner at Eclipse Ventures. Robotics, ML, Frontier Technologies.
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