Just The Facts: Disappearing Investment in Canadian Growth-Stage Companies

Ottawa, ON – After a decade of Liberal mismanagement, venture capital investment in Canadian growth-stage companies fell to nearly zero in the first three months of 2026.

According to a new report from the Canadian Venture Capital and Private Equity Association (CVCA), just 104 investment deals were made with Canadian companies, the lowest number in a single quarter since 2017. Total venture capital investment in Canadian companies also declined by 11.5 per cent compared with last year. This decline shows that investors do not have confidence in the investment environment that the Carney Liberals have created. 

For every dollar of foreign direct investment coming into Canada, two dollars have left: the largest capital exodus in Canadian history. Since the Liberals came to power, Canada has lost $1 trillion of investment, largely into the arms of the Americans.

High Liberal taxes, burdensome red tape and stalling of nation-building projects discourages investment in Canada that would otherwise generate economic growth, create jobs and bring powerful paycheques for Canadians. Anti-business and investment Liberal policies means more businesses are closing than opening in Canada, and we are now in what the Canadian Federation of Independent Business calls an ‘entrepreneurial drought’ in Canada. 

The Liberals claim Canada has the highest foreign direct investment in the G7. What they fail to mention is that much of the investment coming into Canada is from American and other foreign corporations taking over Canadian businesses through mergers and acquisitions.

Entrepreneurs are the backbone of Canada’s economy. The loss of investment and limited access to capital make it harder for them to scale up and succeed, while Canadian companies are sold to foreign buyers, and innovators leave the country in search of better opportunities. 

Mark Carney’s Liberal government needs to get out of the way and unleash our economy so the private sector can build and invest, creating good-paying jobs and new opportunities for Canadian entrepreneurs and innovators.