For Canada’s startups, AI was a dominant force in 2025
Summary
Canada’s startup ecosystem faced a difficult 2025, with political uncertainty and tariff pressure weighing on founders. AI stood out as the biggest magnet for investor attention, with large rounds for Cohere and Multiverse helping dominate the year’s deal flow. The federal government also committed major funding to attract researchers and strengthen Canada’s innovation base, while Google-backed support helped create a new AI chair at the University of Toronto. Several software and tech startups also raised capital, including Azoma and Waabi, reinforcing AI’s central role in the market. Overall, the piece shows a weaker startup environment offset by concentrated momentum in AI and venture funding.
Classifications
industries
Entertainment
applications
Accounting and Taxes
AskAI Classifications
Labels
SaaS
Cloud Computing
Enterprise Software
