Startup Statistics in Canada

Startups all around the world are contributing trillions to the economy. While San Francisco Bay and Silicon Valley are known for being startup hubs, many other areas are seeing a surge of startup companies, including in Canada.

In this article, we explore startup statistics in Canada and across the globe. Read on to find out about the number of startups in Canada, the most successful Canadian startups, and many other key statistics.

Startup Statistics for Canadians

• There are over 50,000 startups in Canada.
• Most Canadian startups are in the Toronto-Waterloo area.
• Canadian startups raised about $2.5 billion in the first half of 2025.
• Tech startups, one of the fastest-growing fields, raised $1.3 billion in Q3 of 2024.
• Clean water solutions and space technology are two of the best industries for startups.
• Steel River Group is the fastest-growing startup in Canada.
• Half of the startups in Canada, the US, and the UK say finding skilled talent is their biggest challenge.
• Only 10% of startups succeed.
• OpenAI is the highest-valued startup in the world, with an estimated value of US$500 billion.

What Are Startups?

Before we get into the startup statistics, it is important to establish what exactly is meant by a startup. Generally, startups are businesses that aim to change the world and disrupt industries. Founders of startups often dream about giving society something that it needs but doesn’t exist yet. In short, they are young companies that aim to develop a unique service or a product that will be irreplaceable and irresistible to consumers.

They are known as disruptors because they want to challenge the established way of thinking and doing for entire industries. Startups are not satisfied with existing templates and want to offer consumers something new. Amazon, Facebook, Netflix, and Google are all startup companies.

Startups in Canada

While there are tens of thousands of new companies started in Canada every year, not all of them are startups since, to qualify as a startup, the company needs to create something new and unique. It is estimated that there are over 3,000 startup companies in Canada.

Which Industries Have The Most Startups in Canada?

23.63% of startups in Canada and the US are in the technology and telecommunications sector. Companies in insurance and finance represent 10.27%, and pharmaceutical, MedTech, and health companies make up 10.27% of all startups.

Where Are Most of the Canadian Startups Based?

While cities such as Montreal, Vancouver, Calgary, and Edmonton are all in the top five for startups in Canada, statistics show that the Toronto-Waterloo area is the hub of Canadian startups. As of 2025, the Toronto‑Waterloo startup ecosystem is estimated to include around 5,200 startups.

Startup Funding From Venture Capitalists in Canada

Canadian startups raised C$2.5 billion in the first half of 2025 (across about 254 deals) according to the latest funding reports, showing continued investor interest despite a challenging market. This was an increase from 2024 when Canadian startups raised approximately C$8.9 billion from 739 deals. In 2023, Canadian startups raised approximately C$6.9 billion across 660 deals.

Crowdfunding For Startups in Canada

While some startups receive large investments from venture capitalists, others rely on crowdfunding platforms to get the funding they need to develop products or services. In 2025, crowdfunding for startups in Canada is estimated at approximately C$248.5 million. Globally, the US has the highest crowdfunding for startups at US$1.2 billion.

Average Startup Investments in Canada

How much is invested in startups depends on the area. In the Toronto-Waterloo startup ecosystem, the average amount companies receive during the seed funding round is C$500,000. In a series A funding round, the average is C$4.4 million. Both of these figures are above the global average.

The Best Industries For Startups

While startups exist in all industries, startups in certain sectors have better chances of success. One of those is initiatives to provide clean water. Investments in startups looking into clean water solutions have gone up by 25% worldwide in the last five years and totaled US$570 million.

Another sector that has seen a lot of investments is the private space industry. Global private investment in space technology startups reached a record estimated US$12.4 billion in 2025, surpassing previous peaks and reflecting strong growth in the sector.

The snack food industry is also drawing in many investors, and startups that specialise in organic, gluten‑free, and low‑calorie snacks perform the best. In 2025, the global snack food market was valued at approximately US$248.8 billion, with continued strong growth driven by demand for healthier and convenience‑oriented snacks.

However, one of the fastest-growing and well-funded areas for startups in Canada is in the tech space. In Q3 of 2024, tech startups experienced a 48% funding increase, totaling $1.3 billion invested in tech startups across the country. 

The Fastest Growing Startups in Canada

The Steel River Group, a pipeline and construction company founded in Calgary, Alberta, in 2017, is recognised among Canada’s fastest‑growing private companies and climbed to #366 on the 2025 Inc. 5000 list based on recent growth. It is an indigenous‑owned business, and its infrastructure projects are conducted in collaboration with Indigenous communities.

The second fastest‑growing startup in Canada is Tru Earth, a company that specialises in developing eco‑friendly detergents; it achieved approximately 98% revenue growth over three years according to the Globe and Mail 2025 ranking of Canada’s top growing companies.

Startups With The Most Funding in Canada

According to the latest funding data, Cohere Inc., an AI startup based in Toronto, is the leading startup in Canada, with US$500 million in funding. Behind Cohere is 5C, a Montreal-based company that has received around US$835 million in funding.

Other Startups to Watch in Canada

While Cohere and 5C have received some of the largest funding rounds in Canada, many other startups in the country are worth watching out for. These include Fellow, Shakepay, Nomic Bio, Xandar Kardian, and Sonic Incytes.

Fellow, founded in 2017 and based in Ottawa, Ontario, has developed an app that improves meeting management for companies and raised about US$24 million in a Series A round.

Shakepay was founded in Montreal, Quebec, in 2015 and has continued to attract investment as a fintech app that makes buying and selling Bitcoin easier and quicker; it has raised more than C$20 million in funding.

Nomic Bio, founded in 2017 in Montreal, Quebec, has raised approximately US$42 million to build a platform that uses advanced protein profiling technology.

Xandar Kardian, founded in 2017 in Toronto, Ontario, creates presence detection and health‑related monitoring solutions and previously raised about US$10 million in funding.

Sonic Incytes, based in Vancouver, British Columbia, has developed advanced medical imaging technology for liver assessment and has secured multiple funding rounds including a Series A of about US$7.3 million.

Startup Challenges in Canada And Globally

While startups in each country will face unique challenges, there are some common threads across the globe. Globally, the biggest challenge for startups is customer acquisition and sales in often saturated markets. 23% of startups find this to be their greatest challenge.

11% of startups said it is a challenge to attract and retain talent. 10% of startup companies found it challenging to be constantly innovative, and cash-flow and growth management posed challenges for 9% of startups. 

Threats to Startup Success

20% of startup companies perceive competition as the biggest threat to their success. There is always the possibility that someone else will get a similar or a better product on the market before them. Other threats were rapid changes in the market conditions, domestic regulations and bureaucracy, and lack of financing, all at 13%.

Finding Skilled Talent is a Key Issue in Canada, The US, and The UK

When focusing on North America and the UK rather than the global picture, the perceived challenges are slightly different. 50% of startups across North America and the UK say that their companies are affected by difficulties in finding skilled talent.

In contrast, only 28% of European startups (excluding the UK) feel challenged by recruiting skilled talent. However, 27% of startups struggle to meet the high salary demands of skilled applicants, and 19% find that the best applicants often decide to work for more established companies.

Startup Failure Rates

While some startups go on to become huge global successes, not all startups are equipped to face the challenges. Around 90% of all startups fail. The failure rate is the highest in the information industry at 63%, while 53% of startups in construction, 51% in manufacturing, and 45% in services fail.

The most likely to survive are companies in healthcare and social services with 60% of them still operational after the first five years.

Most Expensive Startup Failures

The most expensive failure based on disclosed funding is Quibi, the short‑form video streaming startup, which raised about US $1.75 billion before shutting down. LeSports, a Chinese sports streaming platform, raised around US $1.7 billion before failing. Other costly failures include Solyndra, which raised about US $1.2 billion before its collapse, and Arrivo, a US‑based transport startup that secured significant backing and credit at around US $1 billion before winding down operations.

Global Statistics For Startups

Between 2017 and the first half of 2025, the global startup economy has created an estimated US$5 trillion in combined unicorn valuations, reflecting the rapid growth of high‑value technology companies worldwide. In 2025 alone, over 1,400 startup ecosystems have produced companies valued at more than US$1 billion.

Where Are The Startup Hubs Around The World?

While in the past, startups have been concentrated in a few areas, mainly the San Francisco Bay and Silicon Valley, now startups are appearing in more places. Silicon Valley was still ranked the number one startup location in 2020, with London and New York sharing the number two spot. Beijing was in fourth place, and Boston was fifth.

The Asia Pacific area has 30% of the global startup ecosystems, a 10% increase since 2012. While the startups might be spread around the globe more than they were in the past, 74% of all value from startups is still concentrated in the top ten cities.

Where Are The Highest Valued Startups in The World?

The Asia Pacific has one of the largest markets for unicorn valuations globally, with a combined total valuation of about US$2.4 trillion for unicorn companies as of 2025. However, North America has the highest unicorn valuation at approximately US$3.2 trillion, driven largely by the United States’ dominant tech ecosystem. Europe follows with an estimated unicorn valuation of around US$0.55 trillion based on combined data for unicorns headquartered across the continent.

What is The Most Valuable Unicorn Startup in The World?

OpenAI is currently the most highly valued unicorn startup in the world, with a valuation of about US $500 billion in 2025. ByteDance, the Chinese tech company behind TikTok, follows with a valuation of approximately US $330 billion, and SpaceX ranks third with a valuation near US $400 billion.

Summary

For a country with a relatively small population, Canada has quickly established itself as a country that supports innovative new businesses. After a dip in startup funding in 2020, investments have been increasing.

While the biggest concentration of startups in Canada is in the Waterloo-Toronto area, other startup ecosystems are found in cities such as Montreal, Vancouver, Calgary, and Edmonton. The biggest startups in Canada have received investments that total hundreds of millions, and there are many fast-growing startups.