The document presents a comprehensive visual analysis of historical trends on initial funding rounds of Canadian startups involving at least one venture capital fund, as well as seed-stage venture capital investments. This data-driven analysis integrates information from multiple authoritative sources (Réseau Capital, PitchBook, CVCA, Crunchbase, Harmonic, CB Insights) to deliver a nuanced overview of startup funding evolution in Quebec. The insights provided are particularly valuable for entrepreneurs developing funding strategies and venture capital investors seeking to understand the current market dynamics.
In 2025, Québec’s venture capital market became more concentrated: first-round financing grew scarcer but larger, rewarding successful companies while creating tougher conditions for all others.
Here are the key insights from this study conducted by Réseau Capital:
First Funding Round Trends
- Quebec’s Position in the Canadian Landscape: With the exception of Alberta, the number of first-round financings continued to decline across all Canadian provinces in 2025.
- Founder Experience: Over the past two years, Quebec has recorded its lowest share since 2016 of startups securing a first round of venture capital financing with at least one founder who previously founded a venture-backed company, at 18% in 2025.
- Evolution of Round Sizes: In Quebec, the median size of first-round financings increased significantly in 2025, reaching $3.76M CAD, compared to $2.09M CAD in 2024.
- Time-to-Funding: In 2025, Canadian startups completed their first funding round faster, on average (3.02 years), than Quebec startups (3.62 years).
Funding Patterns
- 54% of Quebec startups that raised a first round between 2014 and 2025 went on to raise at least two more; however, among those that completed a first round in 2023, only 32% secured a subsequent round of financing as of Q1 2026.
- The economic cycle downturn led to a decline in the number of funding rounds across all stages in Canada; however, the seed stage appears to have been less affected than the others, accounting for 61% of transactions in 2025.
- In Quebec, seed-stage transactions rebounded in 2025, accounting for 62% of all venture capital transactions in the province.
Investment Ecosystem
- The 2023-2025 period alone represents nearly 40% of all seed funds and amounts raised in Quebec since 2004.
- The number of active Quebec seed-stage investors increased in 2025.