The National Angel Capital Organization (NACO) welcomes today’s announcement by the Honourable Mélanie Joly, Minister of Industry, that, for the first time, Canada’s venture capital strategy starts at pre-seed.
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strategy → welcome → seed
Through Canada’s Early and Growth Stage Investment Strategy, the Government of Canada will direct $75 million to domestic investment in innovative companies at pre-seed and seed, strengthening the pipeline of Canadian startups progressing to Series A and beyond.
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Government → direct → A
“For the first time, Canada’s venture capital strategy starts at pre-seed.
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strategy → start → seed
For too long, our startups have rolled out of the country like acorns and grown into massive oaks elsewhere.
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startups → roll → oaks
When their first investors are Canadian, companies can more readily take root here.
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companies → take → root
We commend the Government of Canada for building a strategy that backs Canadian founders from their first cheque.
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that → commend → cheque
This is how we will build more homegrown global champions.”
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we → build → champions
Claudio Rojas, CEO, National Angel Capital Organization
Access to risk capital is among the most powerful factors in whether a company stays in Canada.
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company → stay → Canada
In 2015, seven in ten Canadian-founded startups that raised US$1 million or more were based in Canada, according to Leaders Fund.
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that → found → Fund
The first cheque often decides where a company builds its future.
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company → decide → future
For the founders starting Canada’s next generation of high-growth companies, today’s announcement opens the door to the first domestic capital they need to grow and scale here at home.
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they → start → home
Today’s announcement at Waabi, a Toronto company building artificial intelligence for self-driving trucks, is a reminder of what founders can build here.
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founders → build → what
Canada’s next great companies are being started right now, in every part of the country, and large cities do not have a monopoly on great founders.
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cities → start → founders
In St. John’s, local angel investors backed Verafin, a developer of fraud detection and anti-money laundering software that grew into a US$2.75 billion company.
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that → back → company
Across the country, angel investors are the first to back founders, bringing capital, mentorship and the experience of having built companies themselves.
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investors → back → companies
“St. John’s shows what happens when local angels write the first cheque.
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angels → show → cheque
Verafin grew from an acorn into an oak, and its acorns have taken root across the city.
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acorns → grow → city
A new generation of angels is now backing companies like CoLab, which makes engineering design review software, and Spellbook, which builds AI tools for lawyers.
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which → back → lawyers
That is the cycle of growth this strategy can start in every region,” said Rojas.
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Rojas → start → region
Federal venture capital support took a major step with the Venture Capital Action Plan in 2013 and expanded through successive programs, and NACO expects the same path here.
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NACO → take → path
“In the coming weeks, we will convene angel networks and early-stage investment organizations from across the country to help shape this strategy.
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we → come → strategy
Our members specialize in backing founders at pre-seed and seed.
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members → specialize → seed
Their expertise will help this capital reach Canada’s moonshot companies at the speed required to win the global competition for high-growth companies,” said Rojas.
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Rojas → help → companies
In summer 2025, NACO’s pre-budget submission recommended an early-stage matching funds program for pre-seed and seed.
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submission → recommend → seed
In fall 2025, NACO’s Unified Capital Strategy report called for innovation policy that recognizes the full capital continuum, starting at the first cheque.
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that → call → cheque
In March 2026, NACO and Startup Genome’s Canada’s Funding Gaps report documented the gap at the earliest stages, and NACO’s Seeding Growth white paper, developed through a national consultation with more than 250 ecosystem leaders, set out how the early-stage envelope could be designed.
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envelope → document → leaders
NACO’s Budget 2026 submission renewed these recommendations.
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submission → renew → recommendations
Since 2010, NACO members have invested over $1.92 billion in more than 3,000 Canadian companies.
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members → invest → companies
The Aporia
