Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInnovationVenture capital investment in Canada jumps 17% in first half of 2026, with domestic investors leading wayInvestors poured $2.69 billion across 250 deals in the first six months of the yearLast updated 37 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.A pedestrian at Bay and King streets in the financial district in Toronto. Photo by Peter Power/Postmedia filesVenture capital investment in Canada jumped 17 per cent to $2.69 billion across 250 deals in the first six months of 2026 compared to the $2.3 billion invested across 274 deals in the first-half of last year, according to a new report from the Canadian Venture Capital Association.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorIt marks the first year-over-year increase in first-half venture capital investment since 2021, with the bulk of the gains coming early in the year. Second quarter investment this year declined seven per cent to $1.29 billion from the first quarter’s $1.39 billion.The biggest disclosed deals in the first six months of 2026 include Toronto roll-up Beacon Software’s $313 million Series C round; defence and dual-use startup Dominion Dynamic Inc.’s record-breaking $139 million Series A; and fintech Koho Financial Inc.’s $130 million Series E, which propelled it to unicorn status.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againOther notable deals include Toronto chipmaker Stathera Inc.’s $78 million fundraise from largely American and Taiwanese investors and B.C. quantum unicorn Photonic Inc.’s $95 million raise backed by some of Canada’s largest institutional investors.There were no initial public offerings from January to June this year, in line with recent years.“Global venture had a record half and almost all of it went to a handful of U.S. artificial intelligence companies,” CVCA chief executive Benjamin Bergen said. “Canadian venture funding grew year-over-year anyway, (meaning) that Canadian investors are keeping companies funded while the world’s capital (is) concentrated somewhere else entirely.”Canadian investors accounted for most of the capital deployed, with BDC Capital Inc., Garage Capital Inc. and Inovia Capital Inc. recording the largest funding rounds, accounting for $832 million, $367 million and $330 million, respectively.But as round size grows, so too does foreign investor participation, Bergen said. “(It is) a sign of how much Canadian companies can attract at scale.”Foreign investors participated in 56 per cent of later-stage rounds compared to 30 per cent from a year earlier, with 44 per cent involving a U.S. investor, which is up from 19 per cent in the same timeframe.While American investor presence in Canadian venture deals remain strong, it has declined in recent years. U.S. investors participated in 28 per cent of Canadian venture deals this year, up from nearly 26 per cent last year but below the 32 per cent recorded in 2024 and 2021’s peak of nearly 37 per cent, according to CVCA data.European participation in Canadian venture deals hit almost 11 per cent, up from six per cent last year, while investment from Asia dropped to 5.2 per cent of all deals from 6.7 per cent in 2025. The top three foreign VC investors that deployed the most capital in Canada in the first six months of the year are the U.S.’s General Catalyst Partners and Bessemer Venture Partners, which invested $381 million and $160 million, respectively, and the United Arab Emirates’ Mubadala Capital, which invested $225 million. All three funds participated in two deals each.Canada’s early-stage financing remained robust, accounting for $1.18 billion across 68 deals in the first-half of 2026. Still, Bergen added that Canada needs to shore up its capacity to lead later-stage rounds in order to capture more economic benefits.The federal government in its budget last year earmarked $750 million for startups, with startup and venture industry groups proposing different paths forward for the government.The CVCA has urged Ottawa to direct the funding toward later-stage and growth-stage companies, which it argues is where the investment gap lies.“Early-stage is where Canadian capital is the deepest,” Bergen said. “(But) the rounds where companies scale … these too often need a foreign lead today because most Canadian funds don’t yet have the capacity to lead at that size.”Later-stage investment was recorded at $984 million across 17 deals in H1 2026, the lowest later-stage deal count in any first-half that CVCA has recorded.“Building that (growth-stage) capacity keeps more of the financial and strategic upside in Canada. It’s also how the country builds the domestic capability to back its own companies as they grow, which is the sovereignty goal the government has set itself,” he said. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.