Canadian venture capital firms raised just over $2 billion in 2025, down 39 per cent from the year before and 74 per cent lower than the sector’s $8-billion high in 2021. The only other year in which VCs raised less capital this past decade was 2023, when they brought in $1.9 billion. (The Logic)

Talking point: The weak fundraising reflects a prolonged hangover from the 2021 boom cycle, as many investors continued waiting for their previous commitments to pay off before backing new funds. VCs typically raise new funds every three to five years, meaning 2025 should have been a big fundraising year. Instead, firms closed just 21 new funds, the fewest since 2018 and down from 58 new funds in 2021. As investors draw down their reserved capital, there’s less money available for startups and scaleups, the report shows. Rather than making new bets, investors are favouring their existing portfolio companies, with the share of capital invested in new companies dropping from 81 per cent in 2022 to 42 per cent last year.