Women make up 51% of Canada’s population, but receive less than 5% of venture capital. That math doesn’t add up.
Canada51, a coalition of organizations working to increase women’s participation in the innovation-driven economy, wants to fix the equation.
The Canada51 Hub launched on Jan. 15 to connect underrepresented entrepreneurs — including women, people of colour, LGBTQ+ individuals, and first-generation immigrants — with investors committed to diversity.
“It’s a central resource to empower innovation, foster collaboration, and support underrepresented founders,” says Arielle Land, program director of Movement51 and chair of Canada51. “It provides the tools needed to thrive in searching for venture capital.”
A movement for inclusive innovation
The Canada51 Hub is the latest initiative from Canada51 and is supported by organizations from across Canada who serve underrepresented founders, including Movement51, Sheboot, Innovation Factory, CapInclusive, Audaxa Ventures and the Firehood. The coalition builds upon the initial efforts of The51, a venture capital fund launched in 2019 and Sandpiper, a venture capital fund launched in 2020.
Together, these groups aim to tackle the significant funding disparities in venture capital.
According to a 2022 report by McKinsey & Company, women-founded teams received only 1.9% of venture capital funds, with Black and Latino women founders receiving just 0.1%.
Land also noted that there are no stats available for Indigenous women, LGBTQ+ women, or women with disabilities, likely because the numbers are so small.
These numbers are global, but the situation in Canada is much the same.
A 2024 report shows that women founders in Canada receive only 4% of venture capital funding. Additionally, a 2022 article from RBC Capital Markets highlighted that while venture financing in Canada reached an all-time high in 2021, women-owned businesses remained underrepresented in the funding pool. The report noted that every year without parity results in a $100 billion loss to the Canadian economy.
Canada51 launched in 2020 as a coast-to-coast collective of women investors and entrepreneur support organisations who were looking to make necessary changes to the current ecosystem. Land says the Hub is a natural extension of that mission.
How the Hub works
The database, which is now live here, allows entrepreneurs to search for investors that match their goals. The platform has curated profiles of funds dedicated to supporting diversity in innovation. Unlike other platforms, the Hub extends beyond gender diversity to include broader underrepresented groups.
“It’s an evolving platform,” says Land. “We’ve started with venture capital, but we will be adding more additional hubs for resources, such as accelerators and incubators.”
The Hub also relies on community participation to grow. Users can submit updates and contribute new information, ensuring the database remains current and comprehensive.
Why launch now?
The launch of the Canada51 Hub comes at a pivotal time for Canada’s entrepreneurial community. Conversations around accountability and inclusion in venture capital are gaining momentum, and initiatives like the Hub aim to provide actionable solutions.
While some of the statistics are shocking, the Hub is focusing on bridging those gaps in venture capital access, particularly in Canada’s innovation economy.
“We try to steer away from the doom and gloom and the negative parts of the statistics, and really focus on the potential of what’s to come,” says Land. “There are a lot more conversations happening in the VC world on supporting underrepresented individuals, and there’s a lot more accountability and ownership to change that narrative.”
While still in its early days, the Canada51 Hub reflects a shift toward addressing structural inequities in entrepreneurship. By bringing together a coalition of organizations and a growing network of investors, the platform is looking to take a step forward in tackling systemic barriers.
Turning collaboration into action
Representation is not only about fairness, but also about unlocking economic potential. Research has consistently shown that diverse teams and women-led companies often outperform their peers.
According to Land, despite having less access to capital and facing barriers in the start-up phase, female teams outperform their male counterparts by an average 63%.
“Supporting women founders is an underrepresented and overperforming asset class that is an opportunity to really drive not just innovation, but the economy,” says Land. “It has proven that diversity has outperformed lack of diversity in teams, and women leaders really spearhead those numbers.”
While it’s early days, the Canada51 team plans to follow the Hub’s impact, including tracking visitors and submissions so they can monitor growth and maximize impact.
For Land, the Hub is the result of extensive collaboration across organizations.
“Many hands have collaborated on [this project], so it’s exciting that we have finally launched it,” she says, adding that it was a “labour of love” for the many organizations involved.
With plans for expansion and ongoing contributions from the community, the Hub has its sights set on becoming a critical resource for underrepresented founders in Canada.
“It’s about a focus on women-driven innovation,” says Land. “I’m not sure what initiatives we’re going to come up with next, but I have no doubt in my mind it’s going to be more powerful and creative resources for these individuals, just based on organizations and individuals that have already joined.”
For more information or to explore the database, visit the Canada51 Hub.
