Canada: economic tailwind boosting the VC ecosystem

23rd June 2016  



With the exception of the US and Canada, venture capital investments declined in all of the other countries between 2009 and 2013. Canada weathered the recession better than many countries, contributing to stable VC investment volume. In fact, VC investment levels have now returned to the pre-recession level of $ 1,654 billion US. The Canadian government has contributed significantly to the country’s position by implementing measures such as the Venture Capital Action Plan (VCAP), a comprehensive strategy to increase private sector investment in innovative businesses.

The involvement of key players such as BDC Capital, the subsidiary of the Bank of Canada, has also proved to be very important for the development of Canadian tech companies. In the first 3Q of 2015, the subsidiary of the Bank of Canada has invested almost the same amount of money as the most active private VC firm iNovia ( $326 and $328.7 million, respectively).

Canada’s startup ecosystem made impressive gains in 2015, considering successful companies such as Hootsuite, one of the most widely used platforms for managing social media, Shopify, or ScribbleLive and there is plenty of room to grow in 2016.

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