“Canadian fintech has entered a selective maturation phase, with investors going after fewer deals but applying more scrutiny to their investments,” said Dubie Cunningham, a partner at KPMG Canada.
The deals driving the numbers
The period’s standout transaction was a Series E round for Nesto, the Montreal-based digital mortgage platform, which raised US$218.6 million; a raise that pushed the company’s valuation to US$1 billion. Investors in the round included La Caisse (formerly known as CDPQ) and Fidelity Investments Canada ULC.
The second-largest deal saw Toronto-based cryptocurrency firm WonderFi Technologies acquired by U.S. retail trading platform Robinhood for US$168.4 million, underscoring ongoing international appetite for Canadian digital asset businesses.
Quarter by quarter, investment picked up momentum as the year progressed. Q1’26 produced US$375 million across 24 deals, while Q2’26 yielded US$621.7 million from 23 transactions, a similar deal count but significantly higher average ticket size.
Where the money went
Artificial intelligence and machine learning dominated by deal volume, attracting 19 of the 47 transactions recorded during the half. Digital assets and cryptoassets followed with eight deals, while PropTech generated six and payments drew four. InsurTech rounded out the key verticals with two deals.