Canada’s Missed Opportunity — and How to Fix It

The 2025 NACO Annual Report shows what many founders have been saying for years: Canada’s startups are strong, but early capital is missing.

In 2024, angel groups made 613 investments totalling $146 million — a 27 percent increase from 2023 — yet overall early-stage venture capital continued to shrink, forcing founders to look abroad for growth funding.

For investors entering the market, this isn’t a problem — it’s an opening. Canada’s innovation pipeline is overflowing with potential, but under-financed where it matters most. This is where disciplined, early-stage investors can make a national-scale impact and capture real value.

Reading the Data Like a Moneyball Investor

The report paints a clear picture:

Valuations are reasonable. Median ≈ $8 million, up from $5 million in 2023 — still a great entry point.
Deal flow is strong. 613 deals across every major region and sector; ICT and AI represent 45 percent of total angel dollars.
The capital gap is early. Pre-seed and seed rounds remain the weakest link in the financing chain, creating space for new, smarter investors.
Follow-ons are steady. 35 percent of deals were follow-on investments, proving that disciplined capital can double down on proven traction.

This is exactly where GSA Ventures operates: between angel investors and larger VC funds — the bridge that helps founders scale while staying Canadian.

The Moneyball Strategy for Canada

In baseball, Moneyball meant finding undervalued players. In venture, it means finding overlooked founders — experienced operators, often New Canadians, building capital-efficient companies with early revenue and global potential.

Aspiring investors can win in this segment by focusing on:

Signals over hype. Choose companies that have gone through accelerator or due-diligence programs, not just glossy pitches.
Portfolio thinking. Ten to twenty small, smart bets outperform one risky moonshot.
Collaborative investing. Co-investing with seasoned funds and angels builds learning and mitigates risk.
Long-term view. The best returns come from helping companies reach sustainable scale before an exit — not pushing for a quick sale abroad.

Why This Matters for New Investors

NACO warns of a “reverse flywheel” — as promising Canadian startups raise abroad, their IP and economic value leave with them.

By stepping in early, aspiring investors can:

Keep innovation anchored in Canada.
Access high-growth opportunities before valuations inflate.
Participate in the country’s most exciting transformation: building a self-sustaining innovation economy.

GSA Ventures’ mission is to make this possible — connecting investors to a curated pipeline of pre-seed startups that have already proven readiness through our Global Startups network.

A Call to Build Smart Capital

The NACO report calls for “a nationally integrated risk-capital framework.” We’re building it from the ground up — through data, discipline, and a Moneyball mindset.

If you’re ready to become part of Canada’s next generation of informed investors:
Join our Investor Preparation Program — learn how to assess pre-seed startups, read data like an institutional VC, and invest where your capital truly moves the needle.

👉 Next session: November 13 – Lunch & Learn on Early-Stage Investing.