On October 22, 2026, Canada unveiled a new venture capital strategy that aims to foster innovation and support local startups by beginning investments at the pre-seed stage. The initiative, announced by the Honourable Mélanie Joly, Minister of Industry, includes a dedicated stream of $75 million specifically for pre-seed and seed funding to assist Canadian founders.
The announcement is part of a broader commitment to inject $1.75 billion into the venture capital sector in Canada. This investment aims to ensure that more startups can secure the necessary funding to grow their businesses within the country. Additionally, the overall strategy includes a $700-million allocation for funds-of-funds, which are designed to provide additional support to emerging venture funds that, in turn, support startups.
While the introduction of this funding is seen as a significant step forward, it has also prompted some criticism. Angel investors have expressed concerns that the current funding model may not fully meet the high demand for capital faced by startups. Despite this, the government maintains that the dedicated resources at the pre-seed level will be crucial in anchoring Canadian intellectual property and ensuring that key decisions are made within Canada.
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