While Canada’s corporate venture capital (CVC) ecosystem is growing, deal volume still dropped 20 percent in 2025, per Deloitte Ventures’ latest annual market report.
The news: Published today, the 2026 report tracks activity among Canadian companies that have formed divisions dedicated to making venture capital (VC) investments in technology startups. It found the number of CVCs in Canada continued to rise last year, hitting 34 as Seaspan International came online, while Clio Ventures, Metalab Ventures, and Providence Health Care Ventures were also added to the list. But despite more firms launching VC arms, total Canadian CVC deal volume also declined 20 percent year-over-year in 2025, with only 60 such financings completed.
From the source: Investment in domestic startups by Canadian corporate VCs also hit a five-year low, extending a three-year decline. Deeper-pocketed CVCs in the United States (US) filled that gap while local shops focused a bit more of their activity abroad. Of the deals struck, 90 percent were concentrated on seed- and early-stage startups—a slight increase compared to 2024.
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Following the thread: The Canadian tech industry has long lamented the fact that Canadian corporate VC investment is dismal compared to the US: the report notes only 26 percent of large Canadian public companies have made VC investments over the last five years, contrasted with 72 percent of US-based, S&P 500-listed firms. Canada’s CVC market is dominated by a few players: Shopify, Telus Global Ventures, and Thomson Reuters Ventures. A steep drop in investment activity among them accounted for the vast majority of the decline Canada saw in 2025. “When three players drive nearly 90 percent of the pullback, it exposes the true fragility of Canada’s CVC ecosystem,” Deloitte Ventures managing partner Talia Abramowitz told BetaKit over email, noting the country has a corporate VC “participation problem.”
Final thought: Deloitte’s latest findings should come as no surprise—they reflect a broader decrease in domestic VC activity. While it is promising that more Canadian companies are dipping their toes into startup investing—especially at the earliest stages, where overall VC activity has been declining—it is also disappointing to see a larger share of the Canadian CVC deals in 2025 focused on foreign firms. If Canada wants to ensure its tech startups have the domestic funding they require to grow, it still needs more companies to step up to the plate and much greater investment from those already supporting the ecosystem.
Feature image courtesy Deloitte Ventures.