Torys’ 2025 Venture Financing Report has gained traction among industry media, with The Logic reporting on the report’s key highlights and findings.
The fifth annual Venture Financing Report examined Canadian VC financings across Canadian-headquartered startups. It showed a gradual return to a more balanced financing environment in 2024 compared to 2023’s capital raising challenges, punctuated by the return of secondaries. Investors and companies executed secondary transactions that allowed early employees and early investors to take some chips off the table. The instances of secondaries did not reflect the exuberance of 2020/2021; however, for companies with an established successful track record, secondaries were used to reward early employees and retool cap tables to bring in new investors and focus on the future.
Looking forward, there are many political headwinds, such as the Canada/U.S. tariffs, global trade tensions, and broad geopolitical uncertainty, that will impact investor sentiment, global capital flow and the availability of venture capital in general. If these headwinds persist, it will likely lead to a more unpredictable financing environment in 2025 and a shift towards more investor friendly deal terms.
You can read the full report here.