Manitoba Aims to Become Canada’s Startup Nation with Bold VC Strategy

Manitoba has the potential to emerge as Canada’s next startup hub, but it requires a robust venture capital strategy to realize this ambition. A recent report from the Canadian Venture Capital & Private Equity Association (CVCA) highlighted a concerning trend: in the third quarter of 2025, the province attracted no venture capital investment. This starkly contrasts with the first half of the year, when Manitoba garnered $125 million across six deals, positioning Winnipeg as the fifth largest tech hub in Canada.

The Q3 report has exposed underlying structural weaknesses within Manitoba’s innovation economy, despite earlier signs of growing investor confidence and entrepreneurial spirit. Premier Wab Kinew has taken steps to address this issue. In November 2024, he established the Manitoba Innovation and New Technology (MINT) as a dedicated department, reiterating the province’s commitment to fostering innovation. In his mandate letter to Minister Mike Moroz, Kinew emphasized the need to attract startups to Manitoba by leveraging the province’s culture of creativity and cutting-edge research.

The foundation for Manitoba’s transformation is already in place. With strong research capabilities, emerging talent, and a resilient startup community, the province is poised for growth. However, the critical element missing is sufficient early-stage venture capital, which acts as the financial engine for successful innovation economies.

Canada’s major technology hubs, including the Toronto–Waterloo corridor, Vancouver, and Montreal, are also grappling with a venture capital gap. According to the Startup Genome’s Global Startup Ecosystem Report (GSER), these regions have dropped in global rankings due to insufficient funding. For instance, the Toronto–Waterloo corridor ranks 20th globally, while Vancouver and Montreal sit at 36th and 39th, respectively. This indicates that even the largest innovation centers in Canada are struggling, making it imperative for smaller provinces like Manitoba to develop a focused venture capital strategy.

Why Manitoba Needs a Coordinated Venture Capital Strategy

Across Canada, leading innovation provinces have established Crown-backed funding mechanisms that drive research, commercialization, and the formation of venture capital. These funding engines not only attract capital but also support startups and scale companies into competitive global players. In contrast, Manitoba lacks a unified provincial innovation agency, a large-scale commercialization platform, and direct provincial venture programs necessary for fostering a tech-driven economy.

While initiatives like the Manitoba First Fund (MFF) represent progress, they primarily deploy capital through private fund managers, leaving founders feeling disconnected from the benefits. There remain critical gaps at the pre-seed and seed stages, where many Manitoba startups currently operate. Programs aimed at supporting entrepreneurs, such as angels, accelerators, and federal initiatives, are valuable but cannot replace the long-term, risk-tolerant venture capital essential for nurturing startups.

Despite the existence of programs like the Small Business Venture Capital Tax Credit (SBVCTC), which offers a 45% non-refundable incentive, limitations on eligibility and public awareness hinder their effectiveness. Manitoba has the tools to succeed; what it lacks is a coherent, province-wide venture capital strategy that integrates these elements into a comprehensive system.

Manitoba’s Economic Development Strategy 2025 proposes a “Made-in-Manitoba” startup visa program to entice high-potential founders and tech companies. Streamlining immigration and easing business formation can help ensure that global entrepreneurs are drawn to Manitoba. However, talent tends to follow capital; without a strong venture capital framework, the province risks losing promising founders to more attractive jurisdictions.

Learning from Global Success Stories

The success of Israel’s Yozma Program, initiated in 1993, serves as a powerful example of the impact a coordinated venture capital approach can have. This program transformed Israel into one of the world’s top ecosystems for venture capital, largely by pairing public funds with private investment to mitigate risk. It also mandated that foreign venture firms establish local operations, further embedding investment within the national framework.

Manitoba can draw on this model by creating a co-investment scheme focused on early-stage startups, ensuring that venture firms not only invest but also maintain a local presence and evolve into sustainable, independent funds.

Manitoba’s unique advantage lies in its recently announced Manitoba Crown–Indigenous Corporation (MCIC), which is set to lead transformative projects like the Churchill Plus initiative. By placing Indigenous leadership at the forefront of economic development, Manitoba can create a competitive edge that no other province currently possesses. This integration of economic reconciliation into the innovation framework presents a unique opportunity to establish a more equitable and inclusive tech landscape.

Additionally, federal initiatives such as the Prairie Partnership Initiative (PPI), which will invest $200 million over three years to support regional projects, align well with this vision. The potential impact of PPI in Manitoba can be maximized when combined with provincial initiatives like MCIC and a dedicated venture capital strategy.

Together, these efforts have the potential to forge a distinct Manitoba innovation ecosystem, where Indigenous inclusion, federal support, and provincial leadership converge to position the province as a thriving startup nation.

Seizing this moment is crucial. If Manitoba acts decisively, it can close existing structural gaps, attract global investors, accelerate commercialization, and cultivate a new wave of “Made-in-Manitoba” startups. By developing a coordinated venture capital strategy in conjunction with Indigenous partnerships and federal alignment, Manitoba can boost its GDP per capita, attract top talent, and transform into a “Have Province” by 2040.

The required elements—research capacity, talent, and entrepreneurial ambition—are present. What remains is the bold action needed to implement a comprehensive venture capital strategy, ensuring Manitoba not only participates in the innovation landscape but also shapes its future.