Investment in artificial intelligence more than doubled between 2024 and 2025, according to the 2025 "Deal Points Report: Venture Capital Financings" published by Osler, Hoskin & Harcourt LLP.
In 2025, AI businesses made up 54 percent of all capital injected into financings – significantly up from the 26.4 percent they comprised in 2024. The report noted that AI companies made up the biggest single-industry category in terms of number of deals and dollars invested, with AI investments (23.6 percent) increasingly represented in the report data. Companies in the information technology and AI sectors comprised 40.7 percent of all financings.
The total capital invested in financings under the report exceeded the number recorded in 2024, hitting about US$4.5 billion in 2025. Per Osler, this was the highest investment level for deals o which the firm acted for a client in the five-year period examined by the report.
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Series C and Series D and beyond financings comprised about US$1.4 billion and US$2 billion worth, respectively, of investments in later-stage companies; Osler noted that this was a large chunk of capital deployment in 2025. Forty and 30 percent of all financings in 2025 were seed and Series A financings, respectively; Series D and beyond financings comprised 10 percent – the first time this figure hit double digits in 2025.
According to Osler, this finding suggests that investors are still betting long term on “exciting companies with good prospects, strong existing or potential economics, product-market fit and exceptional founders.”
Ontario remained the centre of venture activity, as 45.7 percent of deals and 60.8 percent of invested capital took place in this region. Prairie provinces hosted 12.9 percent of all 2025 financings but made up just 4.9 percent of invested capital; Osler suggested the many financings in these areas are early-stage ones.
Québec was home to 21.4 percent of deals and 12.8 percent of invested capital, while British Columbia hosted 12.9 percent of deals and 16.5 percent of invested capital. Moreover, Canadian venture financing transactions are still aligned with the Canadian Venture Capital and Private Equity Association/U.S. National Venture Capital Association model financing documentation – forms based on these are used by 96.8 percent of financings.
The 2025 "Deal Points Report: Venture Capital Financings" report covers 686 venture capital and growth equity preferred share financings completed by Osler between 2021 and 2025.