In summary, because there is a direct link between seed round size and subsequent success, Canadian startups are disadvantaged by smaller seed round sizes, relative to US peers, ultimately resulting in reduced growth and fewer exits . 3.6. Average Series A rounds are also smaller in Canada We can perform a similar analysis for Series A as for Seed. The chart below shows the median Series A round size for Canada. Although the gap is not quite as large as for seed, and the data is rather noisier due to smaller numbers, it can be seen that Canadian Series A rounds are typically smaller than the US (by an average of $1.1M over the past 5 years, if we compare Canadian Tier 1 and US Tier 1):
Figure 15: Median Series A Round Sizes ($M USD)
If we look only at the top 25% of rounds (i.e. the 75th percentile) the gap remains about the same in percentage terms (though is obviously larger in absolute terms, at around $3.8M between US Tier1 and Canada Tier 1 over the past 5 years):
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