Key Canadian FinTech investment stats in Q2 2026:
- Canadian FinTech deal activity reduced 18% YoY
- Trend analysis showed a projected 46% fall in funding for 2026 driven by a drop in deals under $100m
- KOHO, a FinTech offering spending and savings accounts, credit-building tools and overdraft protection to retail customers, raised $93.2m in a funding round that ranks as one of the biggest Canadian FinTech deals of the first half of the year
Canadian FinTech deal activity reduced 18% YoY
Canadian FinTech raised $686.1m across 37 deals in H1 2026, broadly in line with the $701.6m recorded in H1 2025, though deal count fell by 18% from 45 transactions over the same period.
The stability in funding masks a meaningful contraction in activity, with fewer deals being struck even as the total capital raised held relatively firm.
The average deal size in H1 2026 rose 22% to $18.5m from $15.6m in H1 2025, and compares to a $29.3m average across 2025, a figure heavily influenced by the concentration of large deals in the second half of last year.
Trend analysis showed a projected 46% fall in funding for 2026 driven by a drop in deals under $100m
Should H1 2026’s pace continue, 2026 would close with 74 deals and $1.4bn in total funding, representing a 14% decline in deal volume and a 46% reduction in capital raised compared to the $2,524m and 86 deals recorded across 2025.
It is worth noting that deals of $100m or more in H2 2025 alone generated $1.6bn, which drove much of 2025’s overall funding strength and sets a high bar for comparison.
The funding breakdown in H1 2026 points to a market that remains largely dependent on smaller transactions, even as larger deals begin to show tentative signs of recovery.
Deals under $100m raised $469.6m in H1 2026, down 13% from $541.6m in H1 2025, and accounted for 68% of total half-year funding.
Transactions of $100m or more contributed $216.5m, a 35% increase on the $160m recorded in H1 2025, with their share of total funding rising from 23% to 32%.
Across 2025, larger deals dominated, generating $1.8bn and representing 71% of annual funding, a share inflated by the outsized activity in H2.
The gap between that figure and the 32% share seen in H1 2026 is considerable.
It underlines how much of last year’s headline total was driven by a concentrated burst of large-ticket investment in the back half of the year, and how H1 2026 has yet to see comparable deals materialise.
KOHO, a FinTech offering spending and savings accounts, credit-building tools and overdraft protection to retail customers, raised $93.2m in a funding round that ranks as one of the biggest Canadian FinTech deals of the first half of the year
New investors include Mubadala, the Abu Dhabi sovereign wealth fund managing over $385bn in assets, and Savano Capital.
Operator-investors Tobi Lütke, founder and CEO of Shopify, and Michael Linford, COO of Affirm, also joined the round, alongside existing backers Portage Ventures, Drive Capital, BDC Capital, HOOPP and Eldridge.
Founded in 2014 and now serving more than 2.5 million Canadians, KOHO has been working through the regulatory process to obtain a federal banking licence.
The fresh capital is intended to provide the initial capital base required to make a substantive step towards securing that approval, subject to ministerial sign-off.
A banking licence would allow the company to deepen its product offering, reduce costs and strengthen consumer protections for its growing customer base.
The proceeds will also support continued development across KOHO’s core product suite as it pursues its broader mission of making Canada’s financial system work better for more people.
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