The 2025 Founder’s Guide to Raising Series A Capital in Canada
Learn how to raise Series A funding in Canada in 2025—metrics, valuations, investor types, government programs and strategic playbook for founders.
🧭 Executive Summary: Your Canadian Series A
Raising a Series A round is a pivotal milestone for Canadian startups transitioning from proof‑of‑concept to scalable business.
In 2025 the bar has been raised: investors expect evidence of product‑market fit, strong recurring revenues and capital efficiency, all while venture capital flows in Canada remain concentrated in a handful of large deals and early‑stage funding shows signs of strain (betakit.com).
This guide demystifies Series A fundraising by contrasting it with earlier rounds, outlining the metrics that matter, summarizing current data and policies, and offering a tactical playbook tailored to Canada’s unique ecosystem.
🧩 Why Series A Rounds Matter in Canada
Canada’s venture capital market weathered a turbulent 2024 and entered 2025 in cautious optimism.
According to the Canadian Venture Capital & Private Equity Association (CVCA), $7.9 billion in VC funding was deployed across 592 deals in 2024, but 62 % of those dollars came from deals ≥$50 million (fasken.com).
Seed investments shrank by 47 % in value to $510 million across 201 deals (fasken.com), prompting concerns about the pipeline of companies able to progress to Series A (betakit.com). Early‑stage (Series A and B) rounds accounted for 37 % of total VC dollars yet were 31 % lower than the five‑year average (fasken.com).
In H1 2025 the caution continued: Canadian startups raised $2.9 billion across 254 deals, with pre‑seed and seed rounds accounting for just 10 % of dollars (cvca.ca).
Global trends also weigh on valuations; Carta’s Q1 2025 data show the median pre‑money valuation for Series A deals reached $48 million (up 9 % year‑over‑year) while deal counts fell 10 % (carta.com).
Founders thus face heightened expectations and a thinner funding pipeline—making preparedness and strategic positioning critical.
💡 Key Insights from Series A Activity in Canada:
Series A differs markedly from Seed.
Seed rounds often rely on future potential, with funding in the $500k–$3 million range and valuations of $2–15 million (accounti.ai).
By Series A, investors expect demonstrable traction: rounds typically range from $5–20 million with valuations from $10–100 million+ (accounti.ai).
Unlike convertible instruments used at seed, Series A is a priced round that sets a share price and often includes a board seat for the lead investor (carta.com).
Metrics matter more than ever.
Leading VC firm Valor notes that top‑tier Series A raises in 2025 require ≥$2 million Annual Recurring Revenue (ARR), 3× year‑over‑year growth, a burn multiple under 1.5× (net burn ÷ ARR), and the ability to sign 4–6 new contracts per month with average contract values of $50k+ (valor.vc).
Investors scrutinize Net Revenue Retention above 100 %, a Magic Number above 1.0 (new ARR ÷ new sales and marketing spend), and evidence of founder‑led sales (valor.vc).
Valuations are up but dilution is down.
Canada’s funding landscape is uneven.
Ontario, Québec and British Columbia accounted for three‑quarters of deals and 88 % of dollars in 2024 (betakit.com).
Seed‑stage deal counts dropped by nearly half (betakit.com), while venture debt volumes surged to $881 million across 35 deals (fasken.com), reflecting founders’ desire for non‑dilutive capital.
Government programs play a vital role.
Non‑dilutive incentives like SR&ED tax credits can refund up to two‑thirds of R&D expenses (growwise.ai);
IRAP grants cover up to 80 % of labour costs (growwise.ai); and,
The Start‑Up Visa program connects immigrant founders with designated incubators, angel groups and VCs (canada.ca). Such programs can extend runway and validate technology, making startups more attractive for Series A.
Down rounds are less common.
Torys’ 2024 venture financing report notes that only 8.5 % of Canadian financings were down rounds, compared with 13.3 % in 2023 (thelogic.co).
Approximately 73 % of rounds were up rounds, suggesting valuations are stabilizing (osler.com).
Diversity is still lacking.
Women‑founded companies represented 21.3 % of early‑stage companies but captured only 12 % of dollars (osler.com), underscoring the need for inclusive investment practices.
🛠 How It Works: From Seed to Series A
1. Validate and build traction (Seed).
Develop MVP and secure early customers.
Raise seed capital ($500k–$3 M) via angels, accelerators or pre‑seed funds, often using SAFEs or convertible notes (accounti.ai).
Use funds for product development and market validation.
2. Achieve product‑market fit.
Iterate based on customer feedback.
Establish repeatable sales and measure engagement and retention.
Government programs such as SR&ED and IRAP can subsidize R&D and help build a technology moat (growwise.ai).
3. Hit Series A milestones.
Revenue & growth: Aim for ≥$2 M ARR, 3× annual growth and capital efficiency (burn multiple <1.5×).
Customer metrics: Maintain >100 % Net Revenue Retention and sign larger contracts ($50k+ ACV).
Unit economics: Keep customer acquisition cost (CAC) in check and demonstrate a Magic Number >1.0 - valor.vc.
4. Build your investor pipeline.
Warm introductions: Leverage existing investors, advisors and founder networks; cold outreach rarely works.
Target relevant funds: Seek VCs who have led at least three Series A deals in your vertical within the past year.
Process discipline: Run a structured raise with a clear timeline and multiple interested investors; avoid one‑off meetings - valor.vc.
5. Craft a world‑class pitch deck.
Follow the 10/20/30 rule (≤10 slides, ≤20 minutes, ≥30‑point font) and include key sections: problem, solution, business model, underlying magic, marketing & sales, competition, management team, financial projections, current status and use of funds (learn.marsdd.com).
Avoid cliché phrases and back every claim with data; showcase traction and market opportunity (learn.marsdd.com).
6. Negotiate the term sheet.
Series A rounds are priced, assigning a valuation and share price (carta.com).
Typical raises in Q1 2025 saw median dilution of 17.9 % (carta.com).
Consult counsel to understand liquidation preferences, protective provisions and board rights.
7. Close and scale.
Complete legal diligence, finalize documents and draw down capital.
Invest in scaling the team, product and go‑to‑market.
Continue tracking metrics to prepare for Series B or venture debt opportunities.
📊 Data, Trends & Case Studies
Table 1: Funding Landscape Snapshot (2024–H1 2025)
Case Study: Keep’s Series A1 (2025)
Toronto‑based fintech Keep illustrates the Canadian Series A journey. The company, founded in 2021, offers multi‑currency corporate credit cards and financial tools for SMBs.
In May 2025 Keep announced $23 million in total funding, including a $12 million Series A1 round led by Tribe Capital, a $50 million credit facility and $3 million in venture debt (techcrunch.com).
Keep’s co‑founder noted that the company achieved a five‑fold valuation step‑up and 20× revenue growth since its previous Series A (techcrunch.com), underscoring how strong product‑market fit and revenue momentum can unlock higher valuations.
The raise also shows the growing use of venture debt alongside equity to optimize capital structure.
Other Trends
AI and deep tech dominate major rounds.
CVCA data show that Canadian AI firms raised record sums, with generative‑AI company Cohere raising $683 M in its Series D in 2024 (central.cvca.ca).
Radical Ventures’ new $800 million AI growth fund underscores investor appetite (central.cvca.ca).
Regional disparities are widening.
In 2024, Ontario attracted $2.5 B, Québec $2.0 B and British Columbia nearly matched Ontario thanks to Clio’s $1.24 B Series F (betakit.com). Atlantic provinces saw deal counts halvebetakit.com.
Venture debt and non‑dilutive funding are surging.
Venture debt expanded from less than $200 M in 2018 to over $700 M by 2022 (central.cvca.ca) and reached $881 M in 2024 (fasken.com).
Programs like SR&ED, IRAP and Mitacs reduce reliance on equity and extend runway (growwise.ai).
🧭 Series A Strategy Playbook
For Canadian Founders
Master your metrics.
Track ARR, growth rate, churn, net revenue retention, burn multiple, CAC and Magic Number.
Investors expect metrics to meet or exceed benchmarks: ≥$2 M ARR, 3× YoY growth, burn multiple <1.5× and NRR >100 % (valor.vc).
Use dashboards and share monthly updates with potential investors.
Build a resilient capital stack.
Combine equity with venture debt and non‑dilutive funding.
Leveraging SR&ED or IRAP credits can reduce dilution and improve capital efficiency (growwise.ai).
Explore debt facilities from innovation banks like CIBC or National Bank (central.cvca.ca).
Network intentionally.
Develop warm relationships with Series A investors months before your raise.
Attend ecosystem events (CVCA’s Invest Canada conference, MaRS Discovery District programs), leverage accelerators and join angel networks.
Warm introductions dramatically improve your odds (valor.vc).
Craft a data‑driven narrative.
Your pitch deck should articulate the problem, unique solution, business model, traction and financial projections (learn.marsdd.com).
Use visuals and succinct messaging; avoid jargon and unsupported claims (learn.marsdd.com).
Negotiate smart terms.
Aim for a clean term sheet—avoid punitive liquidation preferences or full ratchet anti‑dilution. Understand market standards (typical 15–30 % equity for Series A - carta.com). Engage legal advisors early.
For Investors
Support the early‑stage pipeline.
With seed deals shrinking (fasken.com), investors should nurture pre‑seed and seed companies through mentorship and bridging capital to ensure a healthy Series A pipeline.
Leverage government partnerships.
Co‑invest with BDC Capital, Export Development Canada and provincial funds. Participate in programs like the Thrive Venture Fund (BDC’s fund for women‑led tech) to foster diversity (osler.com).
Promote capital efficiency. Encourage portfolio companies to access SR&ED and IRAP; monitor burn multiples and push for sustainable growth rather than “growth at all costs.”
Prepare for follow‑on. With Series B rounds occurring roughly 2.8 years after Series A (carta.com), investors should reserve capital and assist companies in hitting milestones required for later rounds.
For Policymakers
Expand non‑dilutive programs. Increase funding caps and broaden eligibility for SR&ED, IRAP and Mitacs to ensure early‑stage companies have runway to reach Series A.
Streamline regulatory hurdles. Simplify provincial security regulations to attract cross‑border investment and expedite approvals for venture debt facilities.
Strengthen diversity initiatives. Incentivize funds that invest in under‑represented founders and track data on gender and minority representation to close funding gaps (osler.com).
Support regional hubs. Build infrastructure and mentorship programs in Atlantic Canada and the Prairies to reduce regional disparities and create pipelines beyond Toronto and Vancouver (betakit.com).
🇨🇦 Canadian Nuance for Series A Rounds
Key Programs and Players
Start‑Up Visa Program.
Immigrant entrepreneurs can obtain permanent residency by securing support from designated Canadian venture funds, angel groups or incubators (canada.ca).
Designated organizations include DMZ Ventures, BDC Capital, Inovia Capital, Golden Triangle Angel Network and York Angels, among many others (canada.ca).
Scientific Research and Experimental Development (SR&ED).
Canada’s largest R&D incentive offers investment tax credits and cash refunds up to 2/3 of R&D expenses (growwise.ai); available to companies at all stages.
Industrial Research Assistance Program (IRAP).
Provides grants covering up to 80 % of salaries and 50 % of contractor costs (growwise.ai), ideal for technology development and commercialization.
MaRS Discovery District & Regional Accelerators.
Organizations such as MaRS (Toronto), Communitech (Waterloo), The DMZ (Toronto), VentureLabs (Vancouver) and Innovacorp (Nova Scotia) offer incubation, mentorship and connections to investors.
Major VC Firms.
Leading Canadian early‑stage investors include BDC Capital, Inovia Capital, Golden Ventures, Real Ventures, Yaletown Partners and Georgian Partners.
International players such as Tiger Global, Sequoia and SoftBank also participate in later stages.
Regional & Sectoral Highlights
Ontario remains the epicentre for fintech, SaaS and AI, securing $2.5 B in 2024 VC investment (betakit.com).
Québec excels in deep tech and aerospace, driven by strong research institutions and AI hubs such as Mila and Institute for Data Valorization (central.cvca.ca).
British Columbia punches above its weight thanks to megadeals like Clio’s $1.24 B Series F; the province matched Ontario in dollar value despite far fewer deals (betakit.com).
Atlantic Canada & Prairies face funding gaps; policymakers and investors should prioritize support for startups in Halifax, St. John’s and Calgary to diversify the ecosystem (betakit.com).
Cultural Considerations
Canadian investors are known for their practicality and risk‑aversion, often favoring steady growth over “blitzscaling.”
U.S. investors participated in 32 % of Canadian deals in 2024 (fasken.com), bringing more aggressive terms and higher valuations but also higher expectations.
Founders should balance Canadian pragmatism with global ambition, leveraging cross‑border networks while maintaining realistic milestones.
🏁 Bottom Line
Prepare early and hit your numbers. Series A investors in 2025 expect ≥$2 M ARR, 3× growth, capital efficiency and retention metrics above 100 % (valor.vc).
Valuations have risen but deals are scarcer. Median Series A valuations reached $48 M with 17.9 % dilution (carta.com); however, seed deals are down 47 %, making the pathway to Series A more competitive (fasken.com).
Use non‑dilutive funding and venture debt. Programs like SR&ED and IRAP can refund up to two‑thirds of R&D expenses (growwise.ai), while venture debt from banks extends runway without diluting equity (central.cvca.ca).
Leverage Canada’s ecosystem but think globally. Tap local accelerators, designated Start‑Up Visa organizations and government funds (canada.ca). Build relationships with both Canadian and international VCs to maximize your options.
Diversity and regional inclusion are imperative. Women‑led companies secure a fraction of funding (osler.com), and Atlantic Canada lags in deal activity (betakit.com). Investors and policymakers must broaden participation to ensure a resilient innovation economy.
If you found this guide helpful, please check out our other free Canadian Business guides.
Risk Disclaimer and Intended Use: This guide is intended to act as an educational resource, - not a definitive recommendation. Please reference underlying sources directly for further details. This guide is not a recommendation to raise capital from investors, US-based or otherwise. If you need advice for your business, you are welcome to contact us for a referral.