stages. In fact, an ecosystem’s proportion of exits grows with its proportion of Seed-Funded startups:
Figure 4: Seed Funding Rate versus Exit Rate
In our view, the best way to increase exit rate is to invest to broaden the funnel at Seed stage.
There is also lower success at Series A. This is more difficult to estimate, since as mentioned, some of the Series A gap is ‘inherited’ from the earlier Seed Gap. However, even taking this into account, a lower proportion of Seed-funded startups progress to Series A funding in Canada than is the case in the US-peers; approximately 22% of Canadian Tier1 seed-funded startups progress to Series A (and around 16% of Tier 2 seed-funded startups), versus around 28% for US Tier1 and US Tier 2. 3.3. Canada has lower ratio of Seed to Series A funding than peers We examined the ratio of Seed funding to Series A funding. The chart below shows the total amount of seed funding relative to the total amount of Series A funding,
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