Canadian startup coalition launched to bridge funding gap

The Canadian Startup Capital Association has launched as a national coalition for Canada's early-stage investment market, with 19 founding members.

It aims to connect organisations and investors across a fragmented funding landscape, where seed and pre-seed companies often struggle to secure domestic backing. Its focus spans the pre-seed to Series A stages and includes angel networks, emerging fund managers, Indigenous investment organisations, impact investors, and private debt providers.

Market figures cited by the association suggest growing pressure at the earliest stages of company funding. Pre-seed deal sizes have been falling, emerging managers raised just USD $249 million in 2025, and foreign investors account for about 40% of venture investment in Canada. Domestic capital, meanwhile, remains concentrated at later stages.

Against that backdrop, the group argues that Canada has capital available but lacks the networks and structure needed to direct more of it into young companies when founders first need outside funding.

"Canada has the wealth, the founders, and a new generation of investors ready to act. What's missing are the networks to connect them," said Jesse Wiebe, Executive Director of the Canadian Startup Capital Association.

Wiebe said the market needs to broaden the group that sees itself as part of the investment ecosystem.

"More people need to see themselves in the capital stack. If we want more companies to start and scale here, we need early-stage capital infrastructure that reflects the full diversity of this country," he said.

Founding group

The 19 founding members are Startup TNT, Anges Quebec, Spring, The Firehood, Antler Canada, Capital M Ventures, Indigenous Venture Challenge, Redstick VC, SAIL Initiative, Front Row Ventures, Boreal Ventures, Audaxa Ventures, Trillick Ventures, UCEED, Nadarra Ventures, Manitoba Innovates, Ag-West Bio, Propel Impact, and Southeast Tech Hub.

Across its founding and committed member organisations, the coalition represents more than 3,500 active investors, more than USD $750 million in direct early-stage capital deployed, and more than USD $3 billion in follow-on capital raised by portfolio companies. The network has also supported tens of thousands of founders across the country.

The organisation plans a phased rollout, starting with its founding members before expanding into a broader public platform and policy presence. Its priorities are to increase early-stage investment activity, build infrastructure for innovation ecosystems, and influence the wider system so capital reaches companies earlier.

In practice, that means attracting more first-time angels, family offices, and new fund managers to active startup investing, while strengthening national links among existing local and sector-focused groups. The association wants to act as a connecting layer rather than create separate, standalone programmes.

Diversity focus

Diversity and representation are central to the new body's pitch to members and policymakers. It argues that broadening participation among investors would not only expand founders' access to capital but also reshape who participates in building the country's startup economy.

"The opportunity is to activate new investors and scale what is already working," said Wiebe. "That's how we build a more connected, inclusive, and effective investment ecosystem."

Founding member Spring linked that effort directly to the makeup of the investor community.

"Canada's early-stage opportunity isn't just about more capital - it's about who's participating in it," said Caroline Von Hirschberg, Co-CEO of Spring.

"If we want to unlock the full potential of founders across Canada, we also need a more diverse group of investors at the table. That means creating pathways for people across communities, lived experiences, and backgrounds to see themselves as part of the capital ecosystem," she said.

The association also said the Canadian Venture Capital and Private Equity Association's 2025 annual report shows that a majority of active private investors in Canada are already represented in the coalition. That gives the launch a base of existing market participants rather than a network built from scratch.

Its core argument is that Canada's challenge is less a shortage of money than a lack of early-stage coordination, with investors, founder networks, and regional groups often operating separately. The association aims to address that gap by creating a national forum for sharing deal flow, coordinating activity, and speaking with one voice to governments across the country.