The state of VC in BC: Numbers and narratives

According to the latest data from the Canadian Venture Capital and Private Equity Association (CVCA), B.C.’s venture capital performance in 2024 held its ground amid broader economic and investment uncertainty.

With $2.4 billion in venture capital investment, the province came closer than ever to matching Ontario’s total, trailing by just $41 million.

However, the broader picture is more complex. While large deals helped buoy B.C.’s numbers, there are ongoing concerns about early-stage funding and the overall investment climate.

1. One big deal drove the numbers

Clio’s $1.24 billion fundraising round was a major contributor to B.C.’s high investment total. The province also saw a $242 million raise from Alpha-9 Theranostics and a $137 million investment in carbon capture company Svante. These large deals pushed the region’s average deal size to a record $27.9 million — the highest of any province.

While these numbers are strong, they mask a larger trend: investment is becoming increasingly concentrated in fewer, later-stage companies. If early-stage startups struggle to secure funding, B.C. could face challenges in sustaining long-term growth.

2. Fewer deals, bigger dollars

Although total investment dollars were strong, the number of deals declined. Seed-stage funding was particularly weak, with just $510 million invested across 201 deals nationwide — the lowest in recent years. This raises concerns about the long-term pipeline of high-growth startups in B.C. and beyond.

The challenge for the province now is ensuring that new startups can access the capital needed to grow, rather than relying on a handful of established players to maintain the region’s investment standing.

3. Vancouver’s steady position

Vancouver remained Canada’s third-largest venture hub, with 64 deals totaling $2.2 billion. While it continues to trail Toronto and Montreal in deal volume, investors clearly see value in B.C.-based companies.

4. Venture debt: A growing factor

B.C. reported six venture debt deals worth $87 million, ranking third behind Alberta and Ontario. While not as high-profile as equity funding, venture debt remains a useful tool for companies looking to extend runway without giving up additional ownership.

It will be important to watch whether local companies increasingly turn to this financing option as equity markets remain unpredictable.

5. Policy uncertainty and the road ahead

On a national level, venture-backed IPOs were absent in 2024, reinforcing the trend of companies staying private longer. Exit activity was also subdued, with just $5.17 billion across 40 exits, mostly through acquisitions.

The looming federal election adds another layer of uncertainty. Policy discussions around innovation and capital deployment are intensifying, and the decisions made in the coming months could shape Canada’s venture landscape for years to come.

Despite a challenging environment, B.C.’s investment performance in 2024 was solid. The province benefitted from large deals, but sustaining this momentum will require attention to early-stage funding and overall market conditions.

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