There has been a fight brewing between Candian VCs and founders.
I’m not sure if it’s bad blood or summer heat but things have been popping off. X subtweets. LinkedIn side-eyes. And the DMs—oh the DMs—I can’t tell you the level of DMS BetaKit has received.
“If you’re an emerging manager on your first or second fund, you need to find winners. But realistically, the vast majority of funds here in Canada are still emerging managers.”
Ryan Henry
Sand Hill North
Why? It’s all regarding our reporting about Canadian VCs unwilling to lead rounds, how much easier it is to raise in the US, and founders with unreasonable expectations on timing and valuations.
None of this grousing is new—or at least new since 2012 when I became more active in the Canadian startup ecosystem—but it does seem like the intensity has increased.
The market, while not terrible, isn’t good: VCs and founders alike are struggling to close rounds, interest rates haven’t dropped much, and there’s uncertainty around AI, elections, and certainly tax rates.
Everyone is trying to do less with more, no one is happy about the way things are, and frankly, I feel a little caught in the middle.
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So joining us this week along with my co-host Rob Kenedi is Ryan Henry, partner at Sand Hill North, a small Canadian family office that is an LP in Panache Ventures and Whitecap Venture Partners while doing most of its direct investments in the US.
The sole partner at a micro-cap VC firm, Ryan is like a lone gunslinger roaming the wilds of dealflow. The role gives Ryan a unique venture perspective on both sides of the border and the ability to speak his mind without repercussion.
Now, his perspective is not reflective of all VCs—or certainly all the early-stage startups looking for investment—but it is a handy target to distract our audience from how BetaKit keeps “getting it wrong.”
So, in the dog days of summer, what feels true for VCs and founders? And how far removed is it from what is true?
Let’s dig in.
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The BetaKit Podcast is hosted by Douglas Soltys & Rob Kenedi. Produced & edited by Jess Schmidt. Feature image courtesy Ethan Robertson via Unsplash.