Karsten Wenzlaff, Advisor
August 26th, 2025
October 29, 2026 | NCFA Story Intelligence | Capital Markets Infrastructure And Funding, Artificial Intelligence And Data, Competition And Market Structure

On October 29, 2026, the Ottawa announced plans to invest up to C$1.6 billion in Toronto based Cohere as part of a Series E financing targeting as much as C$7 billion, putting public money directly into a Toronto company that is trying to build a Canadian and European alternative to the dominant US AI platforms. The deal would make Ottawa more than a supporter of Canadian AI. It would make the federal government a shareholder in one of the country’s most valuable private technology companies, at a time when Canada is pushing for greater digital sovereignty and Cohere is expanding deeper into Europe and global enterprise markets.
The government says the investment will be made in stages. Cohere must keep its Canadian incorporation and headquarters, create at least 1,000 new Canadian technical jobs by 2030, and commit at least C$1.7 billion to additional computing infrastructure in Canada. Cohere is entering the deal from a much stronger position than it occupied two years ago. Its Series E is targeting up to C$7 billion at a stated C$35.7 billion valuation. Schwarz Group leads the round. NVIDIA, Bell Ventures, Inovia Capital, Prosperity7 Ventures and other investors are participating. Cohere says its annual recurring revenue grew 165% year over year in the third quarter of 2026 and its customer base expanded twentyfold to about 300 customers.1
Ottawa calls this a sovereignty investment. Prime Minister Mark Carney says Canada needs the ability to build, adopt and govern AI on its own terms, while taking equity lets Canadians share in Cohere’s success if the company keeps climbing.
The sovereignty case and the investment case aren’t the same thing. Canada can value domestic AI capacity even if Cohere never becomes a great financial investment. It can also make money if Cohere becomes a much larger global company. Ottawa is now trying to do both.
What follows is a story of a Canadian AI company finding a different lane, moving closer to government, crossing the Atlantic for scale, and returning to a cap table where Canada itself now wants a seat.
By early 2024, Reuters reports Cohere’s annualized revenue has climbed from about US$13 million to roughly US$35 million by the end of March. The company is growing, but the numbers also show how far it sits from the largest US AI platforms.2
Cohere leans into control instead of reach. Its pitch increasingly centres on private deployment, data security, cloud choice and enterprise customization. The company can compete without needing to win the consumer chatbot popularity contest.
The customer list gets heavier. Cohere names RBC, TD Bank, Bell, Fujitsu, PwC and other large organizations among customers. Private deployment gives the company a route into sectors where security, residency and compliance can block consumer oriented tools.
The scale gap hasn’t disappeared. Anthropic reported US$16.29 billion of revenue in the first half of 2026 in its IPO filing, while OpenAI and other US platforms remain far larger in consumer reach and capital commitments.5 Cohere is trying to win a different buying decision.
The C$240 million support is not the same as today’s equity. Federal records describe the earlier deal as a contribution tied to compute expansion. Ottawa gets economic and strategic benefits if the project succeeds, but it does not participate in Cohere’s valuation the way a shareholder does.
Cohere keeps raising privately. In August 2025 it raises US$500 million at a US$6.8 billion valuation. Cohere Raises $500M at $6.8B for Enterprise Agentic AI shows a company still relying on venture, pension and strategic investors while government support sits outside the cap table.
Europe offers customers, public sector relationships and a policy environment that already prizes data control and local infrastructure. Cohere gains another route to market without having to imitate the consumer led strategies of the largest US firms.
Europe also brings competition. France’s Mistral is raising billions around a European AI champion of its own. US platforms are selling aggressively into the same enterprise accounts. Sovereignty creates demand, but it doesn’t hand Cohere the market.
Something could go very right. If Cohere turns its enterprise and sovereign AI position into a much larger global business, Canada participates in the appreciation instead of collecting only jobs, tax revenue and infrastructure benefits. A future valuation above C$35.7 billion would make equity look very different from another contribution.
The same structure exposes taxpayers to the downside. A private valuation can reset. New rounds can dilute shareholders. Compute spending can consume capital quickly. Cohere may deliver strategic benefits to Canada while still producing a weak investment return. Sovereignty doesn’t erase price.
Canada’s new Canada Launches $1.75B Venture and Growth Capital Plan mostly uses public money to attract private investors through funds and managers. Cohere is a far more concentrated position in one company.
The price is already much higher than it was last year. Cohere raised at a US$6.8 billion valuation in August 2025. The new round points to C$35.7 billion after a year of product growth, acquisitions, European expansion and the Aleph Alpha combination. Ottawa is buying after the story has already moved.
Cohere gives Ottawa a rare chance to test two ideas at once.
The first is strategic. Canada wants more control over the AI systems that governments, banks and other critical organizations may eventually depend on. Cohere’s architecture, Canadian roots and Europe strategy fit that ambition better than handing every sensitive workload to a foreign hyperscaler or consumer AI company.
The second is financial. Instead of paying only for infrastructure, research or jobs, Ottawa wants equity. If Cohere becomes one of the few globally important enterprise AI companies outside the United States and China, taxpayers own part of the upside.
The company has earned a stronger hand than it had two years ago. Revenue has grown, the customer list has widened, North has moved into production environments, European expansion is real, and Schwarz Group has put capital and infrastructure behind the transatlantic strategy.
There is still plenty the public can’t see. Cohere doesn’t disclose net profit or cash burn. Ottawa hasn’t published the ownership percentage or shareholder protections. Nobody outside the deal can yet judge whether C$35.7 billion is an attractive entry price for taxpayers.
Canada may be right about the strategic asset and still have to prove it bought the asset well.
The investment becomes more interesting if Cohere keeps compounding from here. It becomes more difficult if the company needs repeated public support, the valuation falls, or strategic goals start masking weak investment performance.
Cohere has spent seven years trying to prove a Canadian AI company can scale without becoming another US platform. Ottawa has now put C$1.6 billion behind the next chapter.
If Canada wants to become an owner of national champions, Cohere will help show whether it can act like one.
The government has announced an equity commitment of up to C$1.6 billion, but it hasn’t disclosed the ownership percentage, share class, voting rights, board rights, liquidation preference, dilution protections or exit terms. Those details are needed before the investment economics can be judged properly.
Cohere reports rapid ARR and customer growth, and Reuters has reported strong margins around its private deployment strategy. The company does not publicly disclose net income, cash burn or complete financial statements, so profitability cannot be confirmed from public information.
Ottawa says the equity will be invested in stages with regular reporting on jobs and Canadian investment. The public announcement does not disclose the consequences for missed milestones or whether later stages can be withheld.
Ottawa has not said the Cohere structure will become a standard program. The Canada Strong Fund does point in the same direction by making commercial equity ownership a larger part of federal economic policy. Cohere may become an early test of how those strategic and financial objectives work together.
Budget 2025 Accelerates Fintech, AI, and Capital Growth
How federal AI infrastructure and growth capital policy started converging before direct Cohere equity arrived.
Canada Adds Competitiveness to Federal Regulation
A wider look at Ottawa’s push to put competitiveness more directly into federal economic and regulatory decisions.
National Security Is Now Part of Financial Supervision
Why sovereignty, infrastructure control and national security are moving deeper into financial and technology policy.
Why AI Investment Is Missing What Workers Actually Want
A reminder that capital and technical capability still have to translate into adoption, useful work and measurable outcomes.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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October 28, 2026 | NCFA Market Activity | Capital Markets Infrastructure And Funding, Wealthtech Investing And Trading, Competition And Market Structure

Wealthsimple's C$13.8 Billion Valuation Backs Expansion Into Banking, Credit and Business Finance
On October 27, 2026, Toronto fintech Wealthsimple announced a C$425 million financing agreement at a C$13.8 billion post money valuation. Singapore sovereign wealth fund GIC is leading the round, with Power Corporation, IGM Financial, ICONIQ, CPP Investments and Inovia participating. Wealthsimple will receive C$300 million in new capital, while up to C$125 million will be used to purchase existing shares from eligible employees.
The valuation is 38% above the C$10 billion reached in Wealthsimple's October 2025 financing. Since then, Wealthsimple has expanded further beyond investing into chequing, spending, credit and business finance. With more than four million customers, Wealthsimple already has a large base of Canadians using its platform. Building that kind of reach is much harder than launching another financial product.
Wealthsimple reported C$169.2 billion in assets under administration as of September 30, 2026, up from C$100 billion at its October 2025 financing. That's an increase of C$69.2 billion, or 69%, in less than a year. The increase includes both market appreciation and new money entering the platform, so it can't be treated as a direct measure of market share gained from competitors.
Separate transfer data provides clearer evidence of competitive movement. Wealthsimple recorded the highest number of account transfers in the company's history during Q1 2026. It has also told Finance Canada that customers are moving investment accounts from other financial institutions and that record transfer activity shows Canadians are actively shopping for value. Wealthsimple doesn't disclose which institutions are losing those assets, so the public data can't show how much is coming specifically from Canada's major banks. But the direction of travel is clear. Some investment assets are moving from incumbent financial institutions onto Wealthsimple's platform.
For Wealthsimple, every account transferred onto the platform can become more than an investment relationship. A customer who already holds investments there can add chequing, credit or business services without Wealthsimple having to win that person from scratch. The larger the asset and customer base becomes, the more products Wealthsimple can build around relationships it already owns.
The new financing gives Wealthsimple C$300 million of fresh capital to keep building that model. The separate secondary component gives eligible employees a chance to sell up to C$125 million of existing shares while Wealthsimple remains private.
Existing shareholders are also putting in more money. IGM Financial is investing another C$96 million and expects to retain a 25.1% interest after closing. Power Financial is contributing C$68 million, bringing the Power group's combined participation to C$164 million. GIC, which helped lead Wealthsimple's C$750 million financing last year, is leading this round.
GIC managing director Vinay Yarlagadda pointed to Wealthsimple's customer focus and pace of product development as qualities the investor sees in exceptional companies globally. That view now comes with another large commitment of capital from GIC and several major Canadian institutional investors.
The size of the round also stands out in Canada's fintech market. KPMG's Canadian fintech funding data showed US$996.7 million invested across 47 deals in the first half of 2026, compared with about US$1.7 billion across 82 deals a year earlier. Wealthsimple's financing comes later in the year, but it reinforces a clear shift toward larger pools of capital concentrating around companies that have already reached meaningful scale.
The strongest sign that Wealthsimple is becoming more than an investment platform came in the second quarter of 2026. New chequing account openings surpassed investment account openings for the first time, while the company reported approximately C$17 billion in quarterly net inflows.
Chequing changes how often a customer can interact with Wealthsimple. Investing may involve periodic contributions and trades. A chequing account can be at the centre of payroll deposits, bills, transfers and daily spending. Once that activity moves onto the platform, Wealthsimple has more opportunities to connect investing, saving and credit around the same customer.
The company says it launched more than 50 products over the past year. Its May 2026 product expansion added business chequing, portfolio credit and family services. Wealthsimple has also expanded into options, futures, selected IPO access and cash deposits through more than 5,300 Canada Post locations.
Wealthsimple already serves more than 30,000 businesses. Business chequing gives it a base from which it could add more payments, cash management and credit services over time. The firm isn't a chartered Canadian bank. Its chequing services use financial institution partners, while Wealthsimple owns the digital relationship and provides the surrounding products. That structure lets it broaden its financial offering without building a traditional branch network.
Canada's incumbents are responding. BMO introduced zero commission trading through InvestorLine in September 2026, joining other Canadian providers that had already eliminated standard stock and ETF commissions. Low cost trading helped fintech companies attract investors. As that feature spreads, competition moves toward which provider can offer customers the most useful combination of investing, cash, credit and service.
KOHO is taking another route and is working towards becoming a bank. It has more than 2.5 million customers and is pursuing a Canadian bank licence as it expands its consumer financial offering.
Wealthsimple is expanding through its existing regulated businesses and financial institution partnerships. Both are trying to capture more of the customer relationship that has historically belonged to Canada's large banks, but they're using different structures to get there.
Two global fintech companies offer useful comparisons because they've already pushed further into the same convergence of investing, banking, payments and credit.
Revolut reported 68.3 million retail customers and 767,000 business customers at the end of 2025. Annual revenue reached US$6 billion, with 11 product lines each generating more than about US$135 million. Revolut Business accounted for 16% of total income. Revolut started in foreign exchange and payments and has since expanded across banking, investing, lending and business services. Its scale is far larger and its regulatory structure differs from Wealthsimple's, but the commercial lesson is relevant. One customer relationship can support several meaningful revenue streams when the products connect naturally.
Robinhood provides a closer comparison to Wealthsimple's investing roots. It reported 28.7 million funded customers and US$396 billion in platform assets in the third quarter of 2026. Quarterly revenue reached US$1.4 billion and Robinhood Gold subscriptions climbed to 5.2 million. The company said 14 business lines had reached at least US$100 million in annualized revenue. Robinhood has moved from trading into retirement products, subscriptions, cash management, credit cards and banking services. Wealthsimple is following the same broad logic in Canada, using its investment customer base to introduce services people may use more frequently.
The three companies have different market sizes, banking arrangements and product offerings. What they share is a strategy of earning more from customer relationships by connecting several financial services. Revolut shows the potential scale of everyday banking and business finance. Robinhood shows how an investing platform can expand into credit, cash and subscription products. Wealthsimple is bringing parts of both models into the Canadian market.
The Canadian market has its own dynamics. A small number of large banks already have deep relationships across deposits, mortgages, credit cards, investments and business finance. Wealthsimple's four million customers and C$169.2 billion in client assets give it enough scale to compete for more of those relationships one product at a time.
CEO and cofounder Michael Katchen summed up the strategy in the financing announcement, saying Wealthsimple plans to keep building until "every Canadian can live their entire financial life on Wealthsimple." The numbers behind this round show that investors are funding that broader financial services strategy, not simply another expansion of its trading business.
Wealthsimple's next phase seems to be how much of a customer's financial life it can pull away from incumbent institutions. Record account transfers show that movement has already started.
If chequing, credit and business services accelerate it, Canada's banks won't just be competing with Wealthsimple for new customers. They'll increasingly be competing to keep the assets and financial activity of customers they already have.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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October 23, 2026 | NCFA Insight | Capital Markets Infrastructure And Funding, Competition And Market Structure, SME Finance And Business Banking

On October 22, 2026, Industry Minister Mélanie Joly launched Canada's C$1.75 billion Venture and Growth Capital Plan. It combines C$1 billion for a new Venture and Growth Capital Catalyst Initiative with C$750 million for early and growth stage investing. Ottawa expects the programs to attract at least C$3.8 billion of private investment, taking the total pool above C$5.5 billion.
Canada may be reaching an important turning point in how it supports venture capital. The plan is more targeted than another funding announcement. It uses public capital to attract institutional investors, broaden the fund manager base and strengthen later stage financing where Canadian companies often rely heavily on foreign capital.
The C$1.75 billion is federal capital, not money already invested in startups. Most of it will move through fund managers that must raise private capital before investing in venture funds or companies. The first C$700 million fund of funds competition is open now, while the largest growth stage stream is still being designed.
The plan has five funding streams.
Founders won't apply directly for most of this money. BDC will manage the federal investments, while selected fund managers raise private capital and invest through venture funds or eligible companies. The structure is meant to increase the amount of private money available across the financing cycle rather than turn C$1.75 billion into startup grants.
The C$700 million fund of funds stream is the first part with final application terms. Applications close January 21, 2027 at noon Pacific. Managers must be raising at least C$150 million, show Canadian venture investment experience and demonstrate institutional backing or a comparable track record.
The C$100 million emerging manager allocation addresses another weakness. In 2025, the five largest Canadian venture funds captured 83% of all capital raised, while emerging managers raised only C$249 million. A separate stream gives newer managers room to build track records without having to clear the C$150 million minimum used for the main fund of funds competition.
The C$675 million later and growth stage stream targets Series B and beyond, where the financing gap becomes more pronounced. Its current design covers growth equity, opportunity funds, continuation vehicles and some innovation focused buyout strategies. It isn't open for applications yet, and ISED and BDC are accepting feedback until November 23, 2026 at 5 p.m. Pacific.
The most consequential part of the plan may be how Ottawa is using public money to improve the economics for private investors. Selected fund of funds managers must raise C$3 of private capital for every C$1 of public capital. A fund receiving C$50 million from Ottawa would therefore need at least C$150 million from private investors.
The fund of funds terms give private investors priority when returns are distributed. Private investors are paid before the government. They first recover their contributed capital and receive enough additional distributions to reach a 7% internal rate of return. Federal capital is then repaid and begins earning its 2% return before remaining profits are distributed under the fund's waterfall. The 7% isn't guaranteed. Private investors still carry venture risk, but they receive better economics than the federal government when a fund performs well enough to return capital and profits.
Federal money is also put to work early. Public and private capital are generally drawn equally until the government's commitment has been used, even though federal capital represents about 25% of a fund meeting the minimum 3 to 1 private match. That can make participation more attractive to institutional investors by delaying some of their capital calls.
The program still keeps a strong Canadian investment requirement. At least 60% of fund investments must go into qualifying Canadian venture funds. Managers can invest up to 30% of a fund directly into companies, but at least 90% of those direct investments must go to Canadian based businesses.
Previous programs show that the model can attract larger pools of capital. Across VCAP and earlier VCCI programs, Ottawa reports C$1.2 billion of federal investment, C$3.7 billion raised by recipient managers and C$6.4 billion invested in Canadian companies by supported funds and other investors.
The proposed C$675 million growth stage stream takes a different approach. Its current design calls for at least C$2 of private capital for every C$1 of federal investment, but public and private investors would receive the same economic terms. That could make sense in a market where the priority is increasing the number of investors able to finance larger Canadian rounds.
The need is visible in the numbers. Canadian VC investment reached C$2.69 billion across 250 deals in the first half of 2026, but 16 financings of C$50 million or more absorbed 59% of all capital. Later stage activity fell to 18 deals, growth stage financing totalled only C$127 million across three deals and foreign investors participated in 56% of later stage rounds.
International capital is an advantage, something Canada should augment, not replace. The weakness appears when Canadian investors aren't able to lead or anchor enough of those larger rounds. More domestic growth capital can give strong companies another option when they are deciding where to raise, who joins the cap table and how much of the next stage of growth remains anchored in Canada.
Private capital is already moving into the gap. RBC recently launched a C$1.4 billion Canadian technology initiative that includes a growth fund for later stage technology companies. Public capital can widen that market by bringing more pension funds, insurers, family offices and fund managers into the same part of the financing cycle.
The emerging manager stream could broaden Canada's venture market as well. In 2025, government backed VCAP and VCCI capital represented 36% of Canadian VC fundraising. The next step is getting more pension funds, insurers, family offices and other private investors to keep investing after public capital has helped funds build a track record.
Exit markets remain a constraint. Canada recorded 18 venture backed exits worth C$716 million in the first half of 2026 and no venture backed IPOs. Funds ultimately need acquisitions, secondary sales or public markets to return money to investors and put that capital back to work.
Canada has an opportunity to use public capital differently this time. The C$1.75 billion plan can bring more institutional investors into venture, give emerging managers room to build credible track records and expand the pool of capital available when Canadian companies reach larger rounds. The turning point comes if it broadens the investor base (not just the amount of capital available), and those investors earn competitive returns and keep allocating capital after the incentives have done their job. That would move Canada closer to a venture market that compounds on its own rather than waiting for the next government program.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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