INVESTMENTS REMAIN IMPACTED BY ECONOMIC AND GEOPOLITICAL UNCERTAINTY 

The first quarter of the year was largely defined by widespread uncertainty, driven by the situation in the United States and the upcoming federal election in Canada. 

In venture capital, with 30 deals and $301M in total funding, Quebec ranks second nationally for both deal count and total funding. Although activity declined compared to the previous quarter, the province remains significantly above its economic weight in both metrics. 

In private equity, Quebec emerged as the top-performing province in Canada. With 81 deals totaling $16.2B in total funding, the quarter was influenced by four transactions exceeding $100M, which together accounted for more than 96% of the total amount invested. The industrial and manufacturing sector remained the most active, accounting for over 32% of all deals recorded during the quarter. 

The economic and geopolitical environment remains unstable at the start of 2025, both in Canada and globally. The imposition of tariffs by the United States on key Canadian products, such as steel, aluminum, and vehicles, has triggered retaliatory measures from Canada, escalating trade tensions and weighing on both consumer and business confidence. This uncertainty, compounded by market volatility and slowing economic growth, continues to impact the investment climate despite the resilience of certain sectors. 

Venture capital highlights: 

• In Q1-2025, $301M was invested across 30 VC deals in Quebec. 
• The province saw a notable increase in deal count at the seed stage (+60%). 
• Despite a slowdown in venture capital activity in Q1-2025, later stage deal count rose, with 5 deals totaling $153M. 
• Quebec accounts for 24% of VC deals and 26% of total funding in Canada, ranking second behind Ontario. 
• The CleanTech sector is off to a strong start in 2025, with 5 deals totaling $100M. 

Private equity highlights:  

• In Q1-2025, Quebec has recorded $16.2B in investments across 81 deals. 
• Quebec represents 57% of Canada’s private equity deals, ahead of Ontario (23%) and British Columbia (10%), and 89% of total funding. 
• The largest disclosed private equity transactions over the past three months include Garda World Security Corp. ($14B), Héroux-Devtek Inc. ($1.4B), Trencap s.e.c. ($53M), and Groupe Lebel Inc. ($50M). 
• $14B transaction involving Garda World Security Corp. is the largest private equity deal ever recorded in Quebec. 
• Large-scale transactions ($100M+) represented over 96% of total capital invested, while 51% of deals closed since the beginning of the year were valued at $5M or less.