Covid). Put another way, this chart shows that there is relatively too little Seed investment in Canada for the amount of Series A:
Figure 6: Comparison of Seed to Series A Ratios (3y moving average)
If we disaggregate the Tier 1 ecosystems, as per the chart below, this clearly creates greater fluctuations as a consequence of more random noise in the data. However, the critical observation is that whilst the ratios for Vancouver and Montreal are comparable with US Tier 1 & 2, the ratio for Toronto is very low. The fact that this is substantially lower than the US average and that the ratio lowered while Series A funding went down dramatically in Toronto and all over the world in 2023 and 2024 confirms that this is not a consequence of natural Series A success, but rather is a gap that must be addressed. This annual Seed gap for Toronto (the amount of additional seed funding which would be required to raise the Seed:Series A ratio to the typical average of mature ecosystems, of 64%) is $26M USD per year.
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