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
student @UofPenn, intern @foursquare, Philly and NYC by way of Portland
Kirsten Green
Investing in Retail (& E-Commerce) • Consumer
San Francisco Bay Are..., U.S.A. - Canada
Previous Investments
• Chloe+Isabel:
$3250000
• The Insider:
$5200000 (Seed Round)
• The Insider:
$1500000 (Pre Seed Round)
• Duckbill:
$25000000 (Series A)
• Tally Health:
$10000000 (Seed)
• Balance:
$56000000 (Series B)
• Real:
$37000000 (Series B)
• Real:
$10000000 (Series A)
• Real:
$6000000 (Seed)
• Kale:
$4000000 (Seed)
• Homebound:
$75000000 (Series C)
• Homebound:
$35000000 (Series B)
• Homebound:
$18000000 (Series A)
• Faire:
$600000000 (Series G)
• Faire:
$260000000 (Series F)
• Faire:
$170000000 (Series E)
• Faire:
$150000000 (Series D)
• Faire:
$60000000 (Series C)
• Faire:
$40000000 (Series B)
• Faire:
$12000000 (Series A)
• Faire:
$3000000 (Seed)
• Curated:
$75000000 (Series C)
• Curated:
$22000000 (Series A)
• Moment House:
$12000000 (Series A)
• Moment House:
$2000000 (Seed)
• Revel:
$4000000 (Seed)
• Revel:
$3000000 (Seed)
• Glossier:
$80000000 (Series E)
• Glossier:
$100000000 (Series D)
• Glossier:
$8000000 (Series A)
• Loupe:
$12000000 (Series A)
• Calibrate:
$23000000 (Series A)
• Calibrate:
$5000000 (Seed)
• The Yes:
$30000000 (Series A)
• Neighborhood Goods:
$11000000 (Series A)
• Neighborhood Goods:
$9000000 (Seed)
• Neighborhood Goods:
$6000000 (Seed)
• Neighborhood Goods:
$5800000 (Seed Round)
• Modern Fertility:
$15000000 (Series A)
• Rockets of Awesome:
$20000000 (Series C)
• Rockets of Awesome:
$13000000 (Series A)
• Rockets of Awesome:
$7000000 (Seed)
• Ritual:
$25000000 (Series B)
• Ritual:
$11000000 (Series A)
• Ritual:
$4000000 (Seed)
• Hims & Hers:
$100000000 (Series C)
• Hims & Hers:
$50000000 (Series B)
• Hims & Hers:
$7000000 (Series A)
• Prose:
$18000000 (Series B)
• Prose:
$5000000 (Series A)
• The Inside:
$5000000 (Seed)
• The Inside:
$2000000 (Pre Seed)
• Cleo:
$11000000 (Series A)
• Cleo:
$2000000 (Seed)
• Cleo:
$2400000 (Seed Round)
• Outdoor Voices:
$34000000 (Series C)
• Outdoor Voices:
$13000000 (Series B)
• Outdoor Voices:
$7000000 (Series A)
• Faire (formerly Indigo Fair):
$12000000 (Series A)
• Faire (formerly Indigo Fair):
$3400000 (Seed Round)
• Lumi:
$9000000 (Series A)
• Alchemy 43:
$3000000 (Seed)
• Alchemy 43:
(Seed)
• Stockwell:
$3000000 (Seed)
• M.Gemi:
$16000000 (Series C)
• M.Gemi:
$18000000 (Series B)
• M.Gemi:
$14000000 (Series A)
• INTURN:
$23000000 (Series B)
• INTURN:
$10000000 (Series A)
• INTURN:
$4000000 (Seed)
• Packagd:
$6000000 (Series A)
• Stadium Goods:
$5000000 (Series A)
• Birchbox:
$15000000 (Series C)
• Birchbox:
$11000000 (Series A)
• Birchbox:
$1000000 (Seed)
• Dollar Shave Club:
$91000000 (Series D)
• Dollar Shave Club:
$12000000 (Series B)
• Dollar Shave Club:
$10000000 (Series A)
• Dollar Shave Club:
$1000000 (Seed)
• Cricket's Circle:
$2000000 (Seed)
• Draper James:
$10000000 (Series B)
• BloomThat:
$6000000 (Series A)
• Cotopaxi:
$7000000 (Series A)
• Cotopaxi:
$3000000 (Seed)
• Shuddle:
$10000000 (Series A)
• Shuddle:
$3000000 (Seed)
• Glossier, Inc.:
$8400000 (Series A)
• Into The Gloss:
$8000000 (Series Unknown)
• Into The Gloss:
$2000000 (Seed)
• PS Dept.:
$5000000 (Series Unknown)
• Retention Science:
$7000000 (Series A)
• Retention Science:
$750000 (Seed)
• Retention Science:
$1000000 (Seed)
• Bonobos:
$55000000 (Series D)
• Bonobos:
$30000000 (Series Unknown)
• Bonobos:
$16000000 (Series Unknown)
• Bonobos:
$19000000 (Series B)
• Bonobos:
$3000000 (Seed)
• Chloe + Isabel:
$15000000 (Series C)
• Chloe + Isabel:
$9000000 (Series A)
• Darby Smart:
$6000000 (Series A)
• Darby Smart:
$1000000 (Seed)
• Chime:
$4000000 (Seed)
• Wanelo:
$3000000 (Series Unknown)
• HotelTonight:
$4000000 (Series A)
Kirsten Green
San Francisco Bay Area - California, U.S.A. - Canada
Investing In
Retail (& E-Commerce) • Consumer
Description
Kirsten Green is the Founder and serves as a Managing Director & General Partner at Forerunner Ventures. She also serves as the Board Member at Rockets of Awesome, Draper James, Glossier and Outdoor Voices. Kirsten Green is the Founder and serves as Managing Director at Forerunner Ventures. Previously, she was an adviser to TSG Consumer Partners. Before founding Forerunner Ventures, Kirsten was an analyst in the equity research department at Banc of America Securities (Montgomery Securities). Prior to that, she was an associate at Donaldson, Lufkin & Jenrette. Kirsten graduated from UCLA with a B.A. in Business Economics, and she holds a CPA license and a CFA certification. Kirsten serves on the board and executive committee of the Full Circle Fund.
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.
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.
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.
Deep Tech/Hard Science, Developer Tools, E-Commerce, Education, Enterprise, Entertainment, Fintech, Future of Work, Gaming, Government Technology, Health and Wellness, Healthcare/Medtech, Industrial, Internet and Mobile, IoT, Life Sciences, Marketplace, Productivity, Proptech/Real Estate, Robotics, SaaS, Social, Supply Chain/Logistics, Transportation, Travel/Hospitality
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.
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