Key Takeaways
- • Canadian VC investment totalled $4,714 million across 371 financings in the first nine months of 2026, down 7% in dollar terms from $5,073 million and down 17% in financing count from 449 a year earlier, according to CPE Media & Data Company.
- • U.S. investors supplied 64% of Canadian VC funding, the highest share since 2017, while non-U.S. international investors accounted for just 4%, versus 12% in 2025 and 19% in 2019 per Richard Rémillard of Rémillard Consulting Group.
- • Growth and later-stage funding fell to $488 million, a 10% share compared with 37% in 2025, while bridge financing rose to $1,070 million, or 23% of total funding.
- • Canadian VC funds raised $2.69 billion across 40 funds, down from $3,517 million across 62 funds in 2025, with Radical Ventures Breakouts Fund I, L.P.'s US$1 billion raise accounting for much of the total.
- • Canada recorded no VC-backed IPOs since 2021, and GSK plc's acquisition of 35Pharma was the only notable liquidity event cited in the period.
Summary
Canadian venture capital investment totalled $4,714 million across 371 financings during the first nine months of 2026, according to CPE Media & Data Company's Q3 2026 report. The figure represents a 7% decline in dollar terms from $5,073 million and a 17% drop in financing count from 449 in the same period of 2025. All figures are in Canadian dollars unless otherwise noted.
U.S. investors increased their share of funding to 64%, the highest level since 2017. U.S. investors committed $3,030 million. International participation remained limited at 4% of total funding, and investors from 33 countries or regions took part in financings involving Canadian companies, down from 55 in 2025. Canadian governments, VC funds and corporate VC investors together contributed about $1.074 billion, or 23% of the total.
Geographically, Ontario companies secured $2,876 million, or 61% of total funding, up from 56% in 2025. British Columbia, Quebec and Alberta attracted $877 million, $533 million and $325 million respectively. Toronto accounted for 56% of total funding, with Vancouver, Montreal, Calgary and Ottawa rounding out the top five cities, each raising at least $100 million. By sector, ICT investments totalled $2,387 million, or 53% of funding, down from 59% in 2025, while cleantech rose to $915 million, or 20%, from 14%. Life sciences raised $746 million, unchanged at 16%, and aerospace and defence secured $172 million, or 4%.
Stage mix shifted notably. Early-stage companies raised $2,096 million, or 44% of capital deployed, unchanged from 2025. Growth and later-stage companies attracted $488 million, a 10% share, sharply down from 37% a year earlier. Bridge financing captured $1,070 million, or 23%, up from 9%. The report notes that the bridge figure includes Cohere's $677.2 million SAFE bridge financing, whose investors have not been publicly identified; CPE Analytics has cautioned that this gap may materially affect parts of the data and will update its reports if identities are disclosed.
Fundraising was also weak. Canadian VC firms raised $2,690 million through 40 funds, compared with $3,517 million through 62 funds in 2025. Radical Ventures Breakouts Fund I, L.P. (US$1 billion) and two new BDC Capital platforms or allocations together raised $1.84 billion, or 68% of the total. Excluding Radical Ventures, the average private VC fund raised about $40 million.
Exits remained sluggish. Canada has recorded no VC-backed IPOs since 2021, and no significant secondary transactions were reported. GSK plc's acquisition of 35Pharma was the notable liquidity event of the period.
Richard Rémillard, President of Rémillard Consulting Group, said the data "continue and even amplify the difficult circumstances facing the industry," and that the figures "do not auger well" for full-year 2026 totals. He identified non-U.S. international participation and the availability of growth-stage capital as the two areas to watch, and expects any reversal in those trends is unlikely before H1 2027.
U.S. investors increased their share of funding to 64%, the highest level since 2017. U.S. investors committed $3,030 million. International participation remained limited at 4% of total funding, and investors from 33 countries or regions took part in financings involving Canadian companies, down from 55 in 2025. Canadian governments, VC funds and corporate VC investors together contributed about $1.074 billion, or 23% of the total.
Geographically, Ontario companies secured $2,876 million, or 61% of total funding, up from 56% in 2025. British Columbia, Quebec and Alberta attracted $877 million, $533 million and $325 million respectively. Toronto accounted for 56% of total funding, with Vancouver, Montreal, Calgary and Ottawa rounding out the top five cities, each raising at least $100 million. By sector, ICT investments totalled $2,387 million, or 53% of funding, down from 59% in 2025, while cleantech rose to $915 million, or 20%, from 14%. Life sciences raised $746 million, unchanged at 16%, and aerospace and defence secured $172 million, or 4%.
Stage mix shifted notably. Early-stage companies raised $2,096 million, or 44% of capital deployed, unchanged from 2025. Growth and later-stage companies attracted $488 million, a 10% share, sharply down from 37% a year earlier. Bridge financing captured $1,070 million, or 23%, up from 9%. The report notes that the bridge figure includes Cohere's $677.2 million SAFE bridge financing, whose investors have not been publicly identified; CPE Analytics has cautioned that this gap may materially affect parts of the data and will update its reports if identities are disclosed.
Fundraising was also weak. Canadian VC firms raised $2,690 million through 40 funds, compared with $3,517 million through 62 funds in 2025. Radical Ventures Breakouts Fund I, L.P. (US$1 billion) and two new BDC Capital platforms or allocations together raised $1.84 billion, or 68% of the total. Excluding Radical Ventures, the average private VC fund raised about $40 million.
Exits remained sluggish. Canada has recorded no VC-backed IPOs since 2021, and no significant secondary transactions were reported. GSK plc's acquisition of 35Pharma was the notable liquidity event of the period.
Richard Rémillard, President of Rémillard Consulting Group, said the data "continue and even amplify the difficult circumstances facing the industry," and that the figures "do not auger well" for full-year 2026 totals. He identified non-U.S. international participation and the availability of growth-stage capital as the two areas to watch, and expects any reversal in those trends is unlikely before H1 2027.
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