At a glance, this comparison shows that Canadian ecosystems have, in aggregate, lower percentages of startups progressing through different funding stages. In our view, this alone is strong evidence of a funding problem in Canada, relative to the US. Presenting the data slightly differently, and with a slightly expanded time series, the impact of these differences is made starker: for example, in the 2014-16 period the Canadian Tier 1 seed funding success was 10.3% versus US Tier 1 seed funding success of 12.9%; although this seems a relatively small difference, it in fact translates to around 20% fewer startups receiving seeding funding in this period.
Figure 2: Comparison of Attrition Rates (time series)
Note: Canada Tier 2 omits Ottawa
Note that we omit the analysis of the COVID and post-COVID period due to its chaotic effect on funding success rates from one year to the next, preventing reliable conclusions.
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