CONTENTS EXECUTIVE SUMMARY................................................................................................................................................3 1. INTRODUCTION...........................................................................................................................................................6 1.1. About this report...............................................................................................................................................6 1.2. About Startup Genome...............................................................................................................................6 1.3. About National Angel Capital Organization (NACO)...............................................................6 1.4. About the Canadian startup ecosystem and funding landscape.................................7 2. METHOD..........................................................................................................................................................................11 2.1. Overview of our approach.........................................................................................................................11 2.2. Canadian Ecosystems................................................................................................................................13 2.3. Comparator Ecosystems..........................................................................................................................13 2.4. Obtaining Funding Data & Estimating Gaps............................................................................14 3. FINDINGS.......................................................................................................................................................................16 3.1. Canada has lower funding Success Rates....................................................................................16 3.2. Canada has a smaller proportion of Seed-funded Startup..............................................18 3.3. Canada has lower ratio of Seed to Series A funding than peers..................................19 3.4. The Seed Gap widened post-VCAP.................................................................................................22 3.5. Seed round sizes are smaller in Canada......................................................................................24 3.6. Average Series A rounds are also smaller in Canada...........................................................27 3.7. Fundraising is also slower in Canada..............................................................................................29 3.8. AI is critical but exhibits even larger gaps...................................................................................31 3.9. Life Sciences show a similar gap in seed funding size.......................................................35 4. ANALYSIS OF GAP...................................................................................................................................................37 4.1. Summary of findings..................................................................................................................................37 4.2. Estimates of seed funding gap..........................................................................................................37 4.3. Estimates of Series A funding gap..................................................................................................39 5. CONCLUSIONS AND RECOMMENDATIONS..........................................................................................41 5.1. The role of funding policy........................................................................................................................41 5.2. Recommended priorities.......................................................................................................................42 5.3. Adapting to the AI transformation..................................................................................................43 5.4. Recommended interventions............................................................................................................44 6. APPENDICES..............................................................................................................................................................47 6.1. Estimates of Startup Output................................................................................................................47 6.2. Total funding across stages..................................................................................................................48 6.3. Median size of rounds..............................................................................................................................49
Startup Genome | San Francisco • Berlin • London • Delhi • Tokyo • Abu Dhabi • Bangalore • São Paulo
p. 2
Powered by FlippingBook