Fig 7. Seed to Series A Funding Amount Ratio for Canadian Ecosystems (3-year moving Average)
NB: 2024 data is unreliable because of the long lag in seed data capture by funding databases
For the other Canadian ecosystems, while the Seed:Series A ratio is not too dissimilar to the long-term average for mature ecosystems (~64%), we need to consider that both Seed and Series A funding may be too low.
3.4. The Seed Gap appeared from 2017 If we look at total funding over time across Canada, it is apparent that the Seed:Series A ratio was quite high (around 95%) under VCAP, but that this fell from 2017. Although total funding increased post-VCAP, partly as a result of VCCI, Series A increased at a faster rate than did Seed, thus creating a widening ‘Seed Gap’. Specifically, comparing the VCAP period with the years of VCCI1, we can see a 1.6x increase in Seed, a 2.5x increase in Series A and a 2.3x increase in Series B. This is likely because VCCI was directed primarily at Series A and beyond, without an accompanying funding scheme to increase investment at the pre-seed and seed stages. This gap has not closed since:
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