Early-Stage Funding Gaps a Priority with $750 Million in Federal Budget 2025

NACO applauds the Federal Government’s recognition of Canada’s early-stage infrastructure and the critical role of “capital and networks” in empowering entrepreneurs “to launch and scale resilient, high-impact companies”

OTTAWA, Ontario, Nov. 04, 2025 (GLOBE NEWSWIRE) -- Federal Budget 2025 marks meaningful progress in recognizing the critical role of early-stage capital and angel networks in providing entrepreneurs with the capital they need to transform innovation into commercialization. In response, Claudio Rojas, CEO of the National Angel Capital Organization issued the following statement:

“We’re pleased to see meaningful progress in areas that reflect NACO’s long-standing recommendations. This budget takes important steps toward aligning policy with the realities of early-stage entrepreneurs. We look forward to continuing to work with the government on advancing capital formation and leveraging our national network to develop a powerful strategy that fortifies Canada’s angel capital infrastructure.”

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Claudio Rojas, CEO of National Angel Capital Organization at NACO Summit 2025 in Ottawa

Access to Capital and Networks:

In alignment with NACO’s recommendations, Budget 2025 announced the government’s “intention to develop a strategy to support Canadian firms facing early growth-stage funding gaps” through $750 million in support of Canada’s early-stage entrepreneurs and the networks that fund them.

“This $750 million announcement is a timely and strategic investment in Canada’s angel infrastructure. It recognizes that when we support the networks and investors behind early-stage companies, we strengthen the entire innovation economy.”

Budget 2025 also announced the launch of a new fund-of-funds program, “Venture and Growth Capital Catalyst Initiative (VGCCI)”, a $1 billion investment that will extend the impact of VCAP and VCCI, as well as fortify the capital pipeline at the later stage. This initiative is expected to leverage more private venture capital by incentivizing pension funds and other institutional investor participation, and will support new and emerging fund managers and important sectors such as life sciences.

With the announcement of these programs, it is clear that Canada is moving forward with a more sophisticated understanding of how capital at all stages transforms innovation into commercialization. With end-to-end investment from the earliest stages – including both capital and networks – to the latest stages of private capital, Canada will fuel a nation of builders with the capital they need to compete globally.

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Federal Budget 2025

Defence Innovation, Dual-Use, and Strategic Sectors

Further, NACO commends the Government on its efforts to prioritize defence innovation, dual-use, artificial intelligence, quantum, and other strategic and frontier sectors as part of the forthcoming Defence Industrial Strategy. Programs under this strategy include $656.9M, starting 2025-26, for ISED to develop and commercialize dual-use technologies in a range of sectors, and $334.3 million over five years to help quantum technology companies grow in Canada. NACO also commends the government’s investment of $925.6 million over five years to build a large-scale sovereign compute capacity.

Summary

This budget reflects meaningful movement toward the priorities NACO has put forward to build Canada’s innovation ecosystem, as most recently reinforced in NACO's submissions to the Standing Committee on Finance.

The inclusion of targeted initiatives aimed at supporting early-stage companies signals a welcome shift in the national conversation. NACO remains committed to working with government and ecosystem partners to advance the next generation of tools — including implementing a National Investment Tax Credit to increase supply of capital, and strengthening Canada’s angel infrastructure under the $750 million to address early-stage funding gaps.

“Taking a sophisticated and comprehensive approach to capital formation and access to capital will ensure our nation’s entrepreneurs have the resources they need to scale into global markets and compete alongside the world’s fastest growing companies,” said Claudio Rojas, CEO of National Angel Capital Organization. “By increasing capital formation at the earliest stages, we can put Canada at the forefront and make our country a leader in innovation.”

About NACO

Founded in 2002, the National Angel Capital Organization (NACO) represents more than 4,000 angel investors and over 100 member organizations across Canada. Collectively, NACO members have invested more than $1.8 billion in over 2,000 Canadian ventures—fueling innovation, job creation, and economic resilience nationwide.

To schedule an interview, interested media can contact:
Claudio Rojas, CEO of National Angel Capital Organization
Email: media@nacocanada.com

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/361545f1-e8bc-4552-9575-f3b1b90f5019

https://www.globenewswire.com/NewsRoom/AttachmentNg/5b0611ab-7765-4af3-a8a5-19a6391c5d69

Claudio Rojas, CEO of National Angel Capital Organization at NACO Summit 2025 in Ottawa

Federal Budget 2025

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