Key Canadian FinTech investment stats in Q3 2025:
- Canadian FinTech investments halved QoQ in Q3
- Average deal value dropped by 46% to $9.5m as investors prioritised smaller deals
- Quandri, an InsurTech transforming insurance brokerage operations through AI-driven automation, secured one of the biggest Canadian FinTech deals of the third quarter with a $12m Series A funding round
Canadian FinTech investments halved QoQ in Q3
In Q3 2025, the Canadian FinTech sector experienced declines in both funding and deal activity compared to the same quarter last year.
Only 23 deals were recorded in Q3 2025, representing a 31% decrease from the 33 deals completed in Q3 2024.
Funding saw an even sharper drop, with Canadian FinTech firms raising $219.3m in Q3 2025 – a 62% decline from the $579.5m raised in Q3 2024.
This steep contraction underscores a challenging period for the sector, as investors continued to scale back larger funding rounds and adopt a more cautious approach amid ongoing macroeconomic and interest rate pressures.
When comparing Q2 to Q3 2025, deal activity fell slightly from 25 to 23 transactions, marking an 8% QoQ decline.
Funding also dropped by 54% from $481.1m in Q2 2025, suggesting that not only were fewer deals completed, but those that did close were smaller in scale, reflecting cautious selection process among investors.
Average deal value dropped by 46% to $9.5m as investors prioritised smaller deals
The average deal value in Q3 2025 was $9.5m, a 46% decrease from the $17.7m average in Q2 2025 and a 74% decline from the $36.2m average in Q3 2024.
This reduction in average deal size highlights a shift towards smaller, early-stage investments, as capital deployment in Canada’s FinTech sector becomes increasingly conservative.
The continued decline in both deal volume and value signals growing investor caution amid market uncertainty, with firms focusing on sustainable business models and profitability over aggressive expansion.
Quandri, an InsurTech transforming insurance brokerage operations through AI-driven automation, secured one of the biggest Canadian FinTech deals of the third quarter with a $12m Series A funding round
The round was led by Framework Venture Partners with participation from existing investors FUSE and Defined Capital, alongside new backer Intact Ventures, bringing Quandri’s total funding since its 2021 launch to over $20m.
The company’s AI-powered Renewal Intelligence Platform automates key brokerage workflows, including policy reviews, requoting, and client communications, driving efficiency, retention, and revenue growth for insurance intermediaries.
With the new funding, Quandri plans to accelerate its North American expansion, investing heavily in AI and engineering capabilities, and strengthening its presence with a new Boston office and an expanded Vancouver headquarters.
Having achieved a 15-fold increase in revenue and grown its customer base to over 100 brokerages, Quandri is positioning itself as a key technology enabler in modernising insurance distribution and redefining digital operations for brokers across Canada and the US.
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