Canada’s major technology hubs have experienced mixed fortunes in Startup Genome’s latest global startup ecosystem rankings for 2025. The report, which analyzes data from five million startups across more than 350 cities worldwide, revealed that while some Canadian cities have maintained their positions, others have slipped amid a challenging fundraising environment.
Key Findings for Canadian Tech Hubs
Toronto-Waterloo and Vancouver, two of Canada’s largest tech ecosystems, continued their decline for the second consecutive year. Toronto-Waterloo dropped from 18th to 20th globally, while Vancouver fell from 34th to 36th. Montréal remained the only Canadian city in the top 40, holding steady at 39th. Calgary maintained its position in the 41-50 range for emerging ecosystems.
Common Challenges Across Canadian Hubs
The report identified weak startup funding as a common issue across many Canadian tech hubs. Toronto-Waterloo, Vancouver, and Ottawa all scored relatively poorly in funding metrics. Specifically, Toronto-Waterloo ranked low in funding, while Vancouver received the lowest possible scores in both funding and knowledge. Ottawa struggled with funding and market reach.
Broader Context: Canadian Startup Ecosystem
These findings align with recent concerns within Canada’s venture capital community. At Elevate’s CIX Summit in Toronto, industry leaders discussed challenges including poor investment performance and a lack of lead investors. The Canadian Venture Capital and Private Equity Association reported that Q1 2025 was particularly tough, with sluggish pre-seed and seed-stage activity and a five-year low in deal count.
Contrasting Reports and Future Implications
Startup Genome’s results partially contrast with a recent StartupBlink report, which found that Toronto, Calgary, and Vancouver improved in overall ecosystem health rankings, while Montréal and Ottawa declined. Both reports, however, highlight Canada’s reliance on US funding for scaling tech startups, presenting potential long-term risks due to geopolitical tensions.
Conclusion
The mixed performance of Canada’s major tech hubs in the Startup Genome rankings underscores the need for a stronger domestic funding environment. As the Canadian startup ecosystem continues to evolve, addressing funding challenges will be crucial for maintaining competitiveness on the global stage.
