$66 Billion In Lost Ecosystem Value: New Report Exposes Canada's Structural Seed Funding Gap

(MENAFN- GlobeNewsWire - Nasdaq) National Angel Capital Organization (NACO) and Startup Genome release landmark report showing structural early-stage gaps have cost Canada $66B in ecosystem value and 133,000 high-quality jobs

TORONTO, March 05, 2026 (GLOBE NEWSWIRE) -- National Angel Capital Organization (NACO) today released Canada's Funding Gaps, a comprehensive data-driven report prepared in partnership with Startup Genome, a leading startup ecosystem research and advisory organization.

Drawing on approximately 65,000 funding rounds since 2006 across eight Canadian ecosystems and seven leading U.S. peer cities, the report establishes that Canadian startups are being systematically underfunded at the seed stage, and that this gap has grown wider, not narrower, under successive federal venture capital programs.

KEY FINDINGS

Canada's top three startup ecosystems - Toronto-Waterloo, Vancouver, and Montreal - have shed a combined $66 billion USD in ecosystem value since their respective peaks. Over the last 6-8 years, Toronto has fallen from 13th in the Global Startup Ecosystem Rankings to 20th; Vancouver has dropped from 15th to 36th; Montreal from 20th to 39th. Behind those rankings lies a funding architecture that is structurally broken at the seed stage: its foundation.

- JF Gauthier, CEO, Startup Genome

WHY THIS MATTERS NOW

The geopolitical backdrop makes the report's urgency acute. With the United States aggressively expanding its domestic startup investment infrastructure and AI-driven disruption accelerating across every industry, Canada faces a narrowing window to reposition its innovation economy. Startup ecosystems globally grew at a CAGR of 9.5% from 2019-2024; four to six times faster than the broader economy. Canada's startup CAGR over the same period: 2.2%.

The report estimates that Canada's ecosystem decline has already translated into a loss of approximately 133,000 high-paying jobs and roughly $143 billion in combined startup and public tech sector value.

"Canada's startup slowdown is not inevitable. We have been watering the top of the tree while the roots are dying. If we realign incentives to strengthen seed formation, we will see more companies scale, more intellectual property commercialized domestically, and more long-term value created in Canada. The choice is ours."

- Claudio Rojas, CEO, National Angel Capital Organization

ABOUT NACO

The National Angel Capital Organization (NACO) is Canada's national infrastructure for early-stage capital. Established in 2002, NACO represents over 4,000 individual investors and serves as the national umbrella for more than 100 member organizations, including angel networks, syndicates, and early-stage venture funds - from coast to coast to coast. NACO members have deployed more than CAD $1.8 billion into over 2,000 Canadian ventures. Learn more at.

ABOUT STARTUP GENOME

Startup Genome is a leading policy advisory and research organization for accelerating startup ecosystem performance. It has advised more than 155 clients across 45+ countries and produces the Global Startup Ecosystem Report, the definitive annual ranking of the world's startup ecosystems. Learn more at

MEDIA CONTACT

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Full report available at

Photos accompanying this announcement are available at:

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