Fueling a Nation of Builders: A Unified Capital Strategy for a Resilient Innovation Economy
Report | May 26, 2025 | National Angel Capital Organization
Executive Summary Canada’s innovation economy is stalling at the early stages of funding due to fragmented capital supply. The result is a fragile continuum of innovation finance that threatens the long-term competitiveness and economic sovereignty of the country. This report presents an evidence-based framework to address the capital continuum, uniting the perspectives of Canada’s angel and venture capital communities. At the core is a policy recommendation to implement a National Investment Tax Credit (NITC) designed to unlock private capital, build national resilience, and complete Canada’s innovation finance architecture. To guide future policy, this report presents three practical frameworks—Access to Capital, Lifecycle of Capital, and Sustainability of Capital—that clarify how capital is accessed, deployed, and sustained throughout the high-growth company journey. 1. Introduction Canada’s innovation economy is at a crossroads. While the country has made major strides in scaling venture capital—demonstrated by record fund sizes, global LP participation, and the emergence of top-tier firms—the early-stage foundation remains underdeveloped. Without a robust and coordinated capital base, the full potential of our innovation ecosystem will remain unrealized. Addressing these early bottlenecks is essential to ensuring a healthy, investable pipeline for later-stage venture capital and institutional capital. This is a once-in-a-generation opportunity to modernize Canada’s capital infrastructure and position the country for global innovation leadership.
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