A new organization, the Canadian Startup Capital Association (CSCA), has emerged to influence how the Canadian federal government allocates $750 million in innovation funding.

CSCA Enters the Funding Debate

The Canadian Startup Capital Association, representing over 3,500 investors, has launched a proposal challenging existing plans from the National Angel Capital Organization (NACO) and the Canadian Venture Capital and Private Equity Association (CVCA). The core of the debate revolves around whether to prioritize funding for early-stage or later-stage companies.

About the Canadian Startup Capital Association

Founded by Saskatoon-based angel investor Jesse Wiebe, the CSCA represents investors across 19 angel syndicates and small fund managers. These include Startup TNT, Anges Quebec, Antler Canada, and The Firehood. The group aims to give a voice to a wide range of investors, from individual angels to small seed and venture capital firms.

Addressing a Gap in Representation

The formation of the CSCA stems from a desire for direct engagement with the government. Investors felt that NACO and CVCA didn’t fully represent their perspectives on funding allocation.

The $750 Million Innovation Fund

The $750 million is part of a larger $1.75 billion commitment made in the fall 2025 budget to bolster Canada’s innovation sector. $1 billion is already designated for the Venture and Growth Capital Catalyst Initiative (VGCCI), a fund-of-funds program.

Competing Visions for Funding Allocation

NACO and CVCA have differing interpretations of the government’s mandate. The CVCA advocates for focusing on later-stage companies, arguing Canada needs to support scaling companies and reduce reliance on foreign investment. They believe keeping capital within Canada will foster wealth and sovereignty.

NACO, conversely, contends that the most significant funding gap exists at the earliest stages, with fledgling startups chronically underfunded. They propose a matching-fund program for early-stage investments and funding for operational infrastructure.

Government Leanings

Government sources suggest a leaning towards prioritizing later-stage funding, with a smaller portion allocated to early-stage investors.

CSCA’s Unique Approach

The CSCA aligns with NACO’s view that early-stage companies are underfunded. However, Jesse Wiebe believes the primary issue isn’t a lack of capital, founders, or investors, but a deficiency in networks connecting them.

Wiebe proposes strengthening these networks and building modest infrastructure to facilitate connections, rather than the extensive infrastructure envisioned by NACO. He has a proven track record of mobilizing investors and developing programs through Startup TNT.

The CSCA’s emergence adds another layer to the discussion, emphasizing the need for a strategy that supports the entire spectrum of Canadian startups. The debate highlights the challenges in fostering a thriving innovation ecosystem and ensuring Canadian companies have access to the capital they need to compete globally.