Canada’s corporate venture capital (CVC) landscape is seeing an uptick in the number of firms, but a new Deloitte Ventures report highlights a critical issue: a significant dip in deal volume. Despite the launch of new CVC arms like Seaspan International, Clio Ventures, Metalab Ventures, and Providence Health Care Ventures, the total number of deals in 2025 fell by 20% compared to the previous year. This trend underscores a deeper problem within Canada’s CVC ecosystem, even as more companies express interest in venture capital investments.
### What Is Happening in Canada’s CVC Scene?
The report paints a picture of a growing but flawed CVC ecosystem in Canada. As of 2025, the country boasted 34 corporate venture capital firms, a notable increase from previous years. However, the enthusiasm for launching these VC arms has not translated into increased deal activity. In fact, investment in domestic startups by Canadian CVCs hit a five-year low, marking a three-year downward trend. While Canadian firms are creating venture divisions, they are not necessarily putting their money where their mouth is.
### Competitive Context: Canada vs. the US
Canada’s CVC market struggles when compared to its southern neighbor. Only 26% of large Canadian public companies have engaged in VC investments over the past five years, a stark contrast to the 72% participation rate among US-based firms listed on the S&P 500. The Canadian market is heavily influenced by a few dominant players—Shopify, Telus Global Ventures, and Thomson Reuters Ventures. The decline in activity from these giants accounted for nearly 90% of the overall drop in CVC investments in 2025. This concentration of influence reveals the market’s fragility, as noted by Deloitte Ventures managing partner Talia Abramowitz, who pointed out Canada’s “participation problem.”
### Real Implications for Founders and Engineers
For Canadian startup founders and engineers, the report’s findings are both daunting and instructive. The scarcity of CVC investment in domestic startups suggests a tougher funding environment, particularly for later-stage ventures. This means founders need to broaden their horizons, perhaps looking beyond Canadian borders to secure necessary funding. The concentration of investment in seed and early-stage startups—90% of the deals—indicates that while initial funding might be accessible, scaling a company could present challenges. Engineers and product managers should be wary of relying solely on Canadian CVCs for long-term support.
### What’s Next for Canada’s CVC Ecosystem?
The future of Canada’s CVC ecosystem hinges on addressing its participation problem. More Canadian companies need to commit not just to forming venture arms but to actively engaging in the investment landscape. This shift is crucial for fostering a robust tech ecosystem capable of competing on a global scale. For founders and engineers, the lesson is clear: diversification of funding sources is essential. As the Canadian market evolves, staying informed and agile will be key to navigating its complexities and seizing opportunities as they arise.
