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 (PitchBook, CVCA, Crunchbase, 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 of the current market.

Here are the key insights from this study conducted by Réseau Capital: 

First Funding Round Trends 

• Quebec’s Position in the Canadian Landscape: In relative terms, Quebec outperforms Alberta in the number of first rounds, but still lags behind Ontario and British Columbia when adjusted for economic size. 

• Evolution of Round Sizes: With the exception of British Columbia, the median sizes of first funding rounds have decreased for the first time since 2018 across Canadian provinces, signaling a potential shift in early-stage investment strategies. 

• Time-to-Funding Improvement: In 2024, Quebec startups have, on average, been completing their first funding rounds faster than the Canadian average for the first time since tracking began in 2014. 

Funding Patterns 

• A significant 44% of Quebec startups that secured a first round between 2014 and 2022 failed to raise additional rounds, highlighting potential growth challenges. 

• The recent economic cycle reversal has negatively affected investment activity across all stages in Canada, with seed-stage funding particularly impacted (11% decrease in transactions nationally). 

• Quebec has experienced an even more dramatic decline in seed-stage activity with a 36% drop in transactions. 

Investment Ecosystem Development 

• The 2022-2024 period represents nearly 40% of all seed funds and amounts raised in Quebec since 2004, demonstrating significant recent development in early-stage funding infrastructure. 

• The analysis benchmarks the number of active seed-stage investors by province.