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. (more…)