As the investment landscape continues to shift in 2025, founders and investors gathered at TTT Studios in Vancouver for a candid discussion on the state of venture capital, fundraising challenges, and what it takes to scale a startup in an uncertain economic climate.

Moderated by Coho Growth co-founder and managing partner Mark Bakker, the panel, which took place on January 29, featured prominent voices in the funding ecosystem, including Hilary Kilgour, Pieter Dorsman, and Catherine Dahl, among others. Their insights painted a picture of a market that is evolving — and perhaps returning to fundamentals after years of (un)easy capital.

The new reality: Bootstrapping and smart spending

"As a founder, it has been a hard market for a couple of years," acknowledged Kilgour, a managing partner at Audaxa Ventures. "What we saw at the tailend of last year was that things are starting to pick up, but the process is still longer, and funds are more selective. The biggest lesson I give founders is to be disciplined about spending. Every dollar needs to be justified by a clear return on investment."

Catherine Dahl, a venture partner at Exit North Ventures, noted that valuations are now more rational compared to the peak of 2021. "Multiples were soaring then, but today, we’re seeing a return to more grounded valuations — six to seven times revenue for early-stage companies. It may seem like a drop, but this is actually a return to historical norms. Founders need to understand that sustainable growth is more attractive to investors than aggressive but unsustainable expansion."

The panellists emphasized that capital efficiency is now paramount. "If you're burning through hundreds of thousands on marketing without proving ROI, that's a problem," said Pieter Dorsman, a director with eFund. "Many companies are having to do bridge rounds or down rounds because they scaled too quickly without product-market fit. Founders should spend their first round proving traction and scaling in a measured way before chasing aggressive growth."

Canadian startups struggling to scale?

One of the most pressing audience questions came from Connor Aylwin, a sales leader with AWS, who noted that Canadian startups fail to reach Series B at a higher rate than their U.S. and European counterparts. "What guidance are you giving your portfolio companies to ensure they get to Series B or don’t stall before achieving an IPO?"

Dahl highlighted a key issue: "U.S. startups historically have had access to much larger angel checks. That early-stage funding gives them the runway to experiment and fail fast before raising a proper Series A. In Canada, rounds are smaller, and that means founders are constantly switching between fundraising and execution, never having enough runway to focus solely on scaling. To get to Series B, startups need a clear roadmap: strong revenue growth, a scalable business model, and a well-defined exit strategy."

Dorsman added, "Many Canadian founders lack the urgency and boldness of their U.S. counterparts. The ones who make it to Series B are the ones who take a global approach early. They actively court international investors, they understand what their industry benchmarks look like outside of Canada, and they aren’t afraid to think big."

The renewed relevance of non-dilutive capital

As traditional fundraising remains competitive, non-dilutive capital is playing a bigger role in startup financing. "We’re seeing more companies explore debt financing, grants, and government programs to extend their runway," said Bakker. "But founders need to be careful—some of the short-term lenders have predatory terms that can put startups in financial distress. Founders should have a clear repayment plan before taking on any debt."

An audience member pushed the panel to expand on the topic. "There’s a lot of activity, but companies need to have a clear understanding of how debt financing works," Bakker explained. "If you're taking on debt without a strong handle on your cash flow and growth trajectory, it can be a dangerous move. Debt can be useful, but only if you have a path to repayment through revenue growth or future funding rounds."

Dorsman added that smart startups are now hiring dedicated funding experts. "One of the most successful companies I work with has a full-time employee just for grants and government funding. They’re bringing in money from the most unexpected sources, which gives them breathing room without dilution. Every founder should be looking at all available funding sources, not just equity investment."

Building relationships: The key to future rounds

The panellists were unanimous on one piece of advice: start networking early. "If you think you’ll raise in six months, start building relationships now," said Kilgour. "Too many founders make the mistake of only reaching out when they need money. The best deals happen with investors who have been following you for a year or more. Send regular updates, build relationships before you need them, and be transparent about your challenges and progress."

Dorsman emphasized the importance of a local anchor. "If you're a Vancouver company trying to raise in the U.S. or Europe, investors will ask why you don’t have any local backers. Having even a small amount of local support makes it easier to attract outside capital. Also, when you build relationships with local investors, they can introduce you to their networks abroad, which can help when you’re ready to expand."

Looking ahead: 2025 and beyond

Despite the current funding challenges, the panellists remained optimistic. "Great companies always find capital," said Dorsman. "The best founders are adaptable, they understand their financials inside and out, and they know how to tell a compelling story to investors. Being prepared and realistic will set you apart in this competitive market."

Dahl added, "We’re seeing incredible innovation in fintech, climatetech, and health. The Canadian ecosystem is maturing, and with more experienced founders reinvesting in the next generation, the future is promising. The key is resilience — founders who can navigate a tough market will emerge stronger."

Kilgour concluded with a final takeaway: "Fundraising in 2025 requires discipline, smart financial management, and a relentless focus on growth. Investors are looking for startups with a clear vision, efficient operations, and strong execution. If you can demonstrate those, you’ll be in a good position to raise capital, no matter the market conditions."

As the night wrapped up, one theme resonated: while capital is harder to come by, those who can navigate these challenges will emerge stronger — and more prepared for the long game.

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