Canada Launches $75 Million Venture Capital Stream for Pre-Seed and Seed Startups
On October 22, 2026, Minister of Industry Mélanie Joly announced a dedicated $75 million stream within Canada's venture capital strategy to fund pre-seed and seed stage startups, aiming to keep high-growth companies based in the country.
On October 22, 2026, Canadian Minister of Industry Mélanie Joly announced that the Government of Canada is introducing a dedicated $75 million stream for domestic investment in innovative companies at the pre-seed and seed stages. The funding forms part of the Early and Growth Stage Investment Strategy and marks the first time Canada’s venture capital strategy has included support at the pre-seed level.
The initiative is intended to provide first-cheque domestic capital to prevent Canadian startups from relocating abroad and to strengthen the pipeline of companies progressing to Series A and beyond. According to government data, seven in ten Canadian-founded startups that raised US$1 million or more were based in Canada in 2015. By 2024, that figure had dropped to one in three.
Joly made the announcement at Waabi, a Toronto-based company building artificial intelligence for self-driving trucks. The National Angel Capital Organization (NACO) welcomed the new funding stream. NACO noted that its members have invested over $1.92 billion in more than 3,000 Canadian companies since 2010. The organization pointed to Verafin, which was backed by local angel investors in St. John’s and grew into a US$2.75 billion company, as evidence of the potential success of early-stage domestic investment. The strategy also aims to support regional growth outside major cities, exemplified by St. John’s.