INVESTMENTS REMAIN IMPACTED BY ECONOMIC UNCERTAINTY, BUT THERE ARE POSITIVE SIGNS

In venture capital, 85 deals totaling $676 million have been recorded in Quebec since the beginning of the year. Deal count and total funding declined by 10% and 55%, respectively, compared to the first three quarters of 2024. This slowdown is primarily driven by a sharp drop in investments at the early and later stages, partially offset by the resilience of the seed stage, where invested amounts increased by nearly 24% year over year. With an average deal size of $7.95 million, Quebec ranks fifth among provinces for average venture capital deal size so far in 2025.

In private equity, trends remain mixed. Deal count fell slightly by 6% compared to the same period in 2024, while invested amounts rose sharply, increasing 282% year over year. This growth was driven primarily by a strong rebound in growth transactions, where invested capital jumped by nearly 89%, in contrast with buyout transactions, which declined by almost 92% year over year. The year has been marked by significant capital concentration in large-scale transactions, with deals over $100 million accounting for 95% of all capital invested.

The economic and geopolitical environment remains uncertain in the third quarter of 2025, both in Canada and internationally. Trade tensions with the United States persist, particularly regarding tariffs on steel, aluminum, and certain manufactured goods, while financial market volatility and the slowdown in global demand continue to weigh on business and investor confidence. In this context, the 2025 federal budget, which emphasizes private investment and innovation, represents a positive signal for Canada’s investment ecosystem. Its orientations will now need to translate into concrete measures to sustainably support business competitiveness and growth.

Venture capital highlights:

• The seed stage rebounded with 47 deals totaling $121 million. This stage accounts for 55% of deals and 18% of total capital invested since the beginning of the year.
• In 2025, Quebec ranks second nationally for VC activity, representing 22% of deals and 14% of total capital invested across the country. Ontario remains the main driver in Canada.
• The total invested amounts at the early and later stages declined by 63% and 92%, respectively, compared to Q3 2024.
• The average VC deal size in Quebec stands at $7.95 million after the first three quarters of 2025, below the Canadian average of $12.74 million, ranking the province fifth nationally.
• With $206 million invested across 40 deals, the ICT sector recorded its weakest first-three-quarter performance since 2014.
• The $676 million invested across 85 deals since the beginning of the year represents Quebec’s lowest level of venture capital activity since 2015.

Private equity highlights:

• The seed stage rebounded with 47 deals totaling $121 million. This stage accounts for 55% of deals and 18% of total capital invested since the beginning of the year.
• In 2025, Quebec ranks second nationally for VC activity, representing 22% of deals and 14% of total capital invested across the country. Ontario remains the main driver in Canada.
• The total invested amounts at the early and later stages declined by 63% and 92%, respectively, compared to Q3 2024.
• The average VC deal size in Quebec stands at $7.95 million after the first three quarters of 2025, below the Canadian average of $12.74 million, ranking the province fifth nationally.
• With $206 million invested across 40 deals, the ICT sector recorded its weakest first-three-quarter performance since 2014.
• The $676 million invested across 85 deals since the beginning of the year represents Quebec’s lowest level of venture capital activity since 2015.