Relative to our neighbors south of the border, Canada is a small market in the world of venture capital (VC). According to Ernst & Young, it is estimated that in 2013, the United States attracted $33B in venture capital while Canada attracted only a fraction of that at $1.0B, or 3% of the U.S. market.
Some of this can be attributed to our smaller population size (35M vs. 320M), but that would mean that Canadian VC should be 11% of the United States, not 3%. If we use venture capital/population as a comparable metric, that’s $29/person in Canada versus $103/person in the United States. This points to the fact that Canada is a much younger market for VC and one that is likely to grow over time as the startup ecosystem matures and investors look outside of the US for their next opportunity.