Manitoba Aims to Become Canada’s Next Startup Hub with New VC Strategy

Manitoba faces significant challenges in its pursuit to become a leading startup destination in Canada, as highlighted by the recent report from the Canadian Venture Capital & Private Equity Association (CVCA). The Q3 2025 report revealed that the province attracted no venture capital investment, a stark contrast to the $125 million drawn in during the first half of 2025 across six deals. This decline raises concerns about the province’s innovation economy, which had previously shown promise.

The sharp fall in investment exposes underlying structural weaknesses. Despite this, Manitoba possesses all the essential elements to establish itself as Canada’s next startup nation, provided it develops a bold venture capital strategy. Premier Wab Kinew took significant steps towards this goal in November 2024 by launching the Manitoba Innovation and New Technology (MINT) as an independent department, prioritizing innovation at the provincial level. In his mandate letter dated November 13, 2024, to Minister Mike Moroz, Kinew outlined an ambitious vision: to attract startups to Manitoba by fostering a culture of creativity, collaboration, and advanced research.

Identifying the Gaps in Manitoba’s Innovation Economy

Manitoba has a strong foundation for innovation, characterized by a robust research capacity, emerging talent, and a resilient startup community. However, the province lacks sufficient early-stage venture capital, which is crucial for nurturing its startups. According to Startup Genome’s Global Startup Ecosystem Report (GSER), major Canadian tech hubs—including the Toronto–Waterloo corridor, Vancouver, and Montreal—are losing global competitiveness due to insufficient funding, indicating that Manitoba is not alone in this venture capital gap.

While Alberta, Quebec, and Ontario benefit from Crown-backed funding mechanisms that support research and commercialization, Manitoba’s innovation landscape remains fragmented. There is no unified provincial agency dedicated to innovation or any significant venture capital programs capable of scaling startups into global competitors. The Manitoba First Fund (MFF) is a step forward, yet it primarily deploys capital through private fund managers, leaving many founders unaware of its impacts.

Critical funding gaps persist at the pre-seed and seed stages, where most startups in Manitoba operate. Although angel investors, accelerators, and federal initiatives provide valuable support, they cannot substitute for long-term, risk-tolerant venture capital, which is necessary for startups to expand and hire talent.

Learning from Successful Models and Building a Strategy

To effectively compete, Manitoba must develop a coordinated venture capital strategy that integrates various funding elements into a cohesive system. The province’s Economic Development Strategy 2025 proposes a “Made-in-Manitoba” startup visa program to attract high-potential founders and tech companies. Streamlining immigration processes will facilitate the establishment of global startups within the province. However, attracting talent requires a parallel increase in venture capital; otherwise, Manitoba risks losing promising founders to other jurisdictions.

An exemplary model for Manitoba to consider is Israel’s Yozma Program, launched in 1993. This initiative successfully transformed Israel into one of the world’s most robust venture capital ecosystems by matching public funds with private investments and encouraging foreign firms to set up local operations. By adopting a similar co-investment approach focused on early-stage startups, Manitoba could ensure that venture firms establish a lasting presence in the province.

The creation of the recently announced Manitoba Crown–Indigenous Corporation (MCIC) offers an additional opportunity to integrate Indigenous leadership into economic development. This initiative, combined with the federal Prairie Partnership Initiative (PPI), which aims to invest $200 million over three years to support regional projects, could enhance Manitoba’s innovation ecosystem. The PPI’s effectiveness will be maximized when aligned with provincial strategies like MCIC and a dedicated venture capital approach.

The convergence of Indigenous inclusion, federal support, and proactive provincial leadership presents Manitoba with a unique opportunity to emerge as Canada’s next Startup Nation.

The moment for Manitoba to seize its startup potential is now. By implementing a coordinated venture capital strategy alongside strong Indigenous partnerships and alignment with federal initiatives, the province could significantly enhance its GDP per capita, attract top talent, and cultivate a thriving ecosystem of “Made-in-Manitoba” startups. With the right actions in place, Manitoba can shape the future of innovation rather than merely participate in it.