News Summary
Québec’s venture capital (VC) landscape is experiencing a rebound in seed-stage funding, despite an overall downturn in VC activity in the province. A report by the Canadian Venture Capital & Private Equity Association (CVCA) and Réseau Capital highlights that 60% of VC deals in Québec were under $5 million in Q2 2025. Since the beginning of 2025, 29 seed-stage deals totaling $79 million occurred, marking a 31% increase compared to the previous year. This growth contrasts with the broader Canadian trend, where seed deals declined both in number and total funding. Although this uptick is promising, experts warn it is too early to declare a sustained trend, given that overall VC funding in Québec decreased by 57% year-over-year. Persistent political and economic uncertainties, coupled with a challenging fundraising environment, continue to impact the VC ecosystem. The report also notes that Québec’s tech sector heavily relies on public and quasi-public funds, which constitute about 40% of the capital deployed. Later-stage activity also saw a decrease, with only one notable growth-stage deal recorded in the first half of 2025.
