Budget 2025: A Mixed Bag for Canadian Startups, but Optimism Grows

Canada’s 2025 federal budget is making waves in the startup community. With a focus on innovation, the budget introduces the Productivity Super-Deduction, enhanced SR&ED tax credits, and a $1 billion Venture and Growth Capital Catalyst Initiative. These measures aim to reduce costs, boost R&D, and address early-stage funding gaps for startups. Founders are cautiously optimistic: while the budget signals a friendlier environment for tech and science ventures, many details remain to be clarified. The new Buy Canadian Policy and procurement programs are expected to open more federal contracts to startups, but execution will be key. As one founder put it, “The certainty to scale at home is growing, but we need to see these programs in action.”.

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Photo by Mikhail Nilov