The capital is here. The companies are here. But the plumbing that connects them is broken and we’re losing companies, jobs and investment as a result. The Board's new report sets out nine actions to unlock debt and equity capital, and create the conditions for businesses to invest, scale, and grow.
Canadian pension funds manage more than $2.5 trillion, yet invest less than 1% in domestic venture capital, despite Canadian VC returning 25.8%, compared with just 4.9% for foreign investments.
Meanwhile, the companies that need that capital can't reach it, growth-stage investment and debt financing is difficult to access, and an outdated tax and regulatory framework makes Canada a harder place to scale than it should be.
This results in founders leaving. Only one-third of Canadian-founded startups that raised more than $1 million in 2024 were still based in Canada, down from three-quarters in 2016.
The Capital to Compete outlines nine practical recommendations to fix the system by improving access to debt and equity capital, while creating a more competitive environment for businesses to invest, scale, and grow.
Canada will not keep its best companies by accident. We need a complete overhaul of the financing pathway, backed by tax and regulatory reform, so Canadian companies can grow from startup to global competitor without leaving Canada.
