Welcome to Pender Ventures’ 4th Annual Canadian Health Tech Funding & Trends Report. As long-term investors in software and healthcare, we see the market up close, through financings, exits, and the day-to-day realities of building companies. This report is our opportunity to step back from the noise and take a clear-eyed view of where capital is actually flowing, where friction remains, and what that means for founders, operators, and investors navigating health tech today.
This year’s data tells a nuanced story. Funding rebounded meaningfully in 2025, but the recovery was narrow. Capital returned with discipline, concentrating into fewer, larger, higher-conviction rounds. Investors rewarded certainty, scale, and execution, while early-stage experimentation remained at previous year’s levels. The result is a market that feels healthier on the surface, but more selective underneath.
Across the ecosystem, exits remained limited despite healthy IPOs in the US. AI adoption accelerated rapidly, crossing from pilot established platforms in diagnostics, life sciences, and clinical decision support, yet financial ROI continues to lag technical progress. Platforms with embedded workflows and data moats pulled ahead, while point solutions were increasingly absorbed rather than scaled independently.
In this report, we unpack what these dynamics mean for founders, operators, and investors navigating the next phase of Canadian built health tech companies. We hope it sharpens perspectives, sparks debate and helps builders and investors alike navigate what’s next.
