The latest Osler Deal Points Report reveals that while financing activity in Canada’s venture capital market grew significantly in 2025, the rebound was concentrated at the earliest and latest funding stages, with mid-stage ventures facing tougher conditions.
- 2025 deal value rose 22% to $6.3 billion CAD with more up rounds
- Early-stage rounds made up 70% of deals but only 16% of capital
- Series B rounds saw higher down rounds and shifting board control
What happened
Osler’s 2025 Deal Points Report analyzed 140 preferred share financings the firm worked on, showing a 22 percent increase in deal value year-over-year to $6.3 billion CAD. The data spanned 686 preferred share financings from 2021 through 2025 and 240 convertible securities from 2024 and 2025, representing multi-billion-dollar transactions in Canada’s venture capital market.
The data revealed a recovery primarily at the earliest (seed and Series A) and latest (Series D and beyond) financing stages. Seed and Series A rounds accounted for 70 percent of deal volume but only 15.9 percent of invested capital. Meanwhile, Series D and later rounds reached 10 percent of deals and comprised 43.6 percent of capital deployed.
Why it matters
This uneven recovery highlights structural shifts in the Canadian startup financing landscape. Investors are writing smaller checks with more tailored terms at early stages, signaling a cautious approach to risk. At the same time, the rise of down rounds at Series B suggests increased pressure on startups transitioning from early growth to institutionalized ownership models, where investor control tends to increase.
Founders also benefited from reduced dilution across all stages in 2025, which may be attributed to either rising valuations with stable round sizes or smaller capital raises. Additionally, the growing role of secondaries in Series C and later rounds addresses liquidity challenges as companies remain private longer, providing early investors and founders opportunities for cashing out.
What to watch next
Stakeholders should monitor how the dynamic between financing volume and capital distribution evolves in 2026, especially whether mid-stage ventures regain momentum or continue facing valuation pressures. The persistence of secondaries and tailored deal terms could reshape startup capital strategies, balancing growth funding with liquidity needs.
The report’s insights underscore the importance of strategic governance transitions at the Series B stage, where founder influence generally declines. Founders and investors alike should watch for further shifts in deal structures and board control that may impact company trajectories as Canada’s venture ecosystem continues to mature.