One of the key frustrations of Vancouver entrepreneurs is lack of funding.

“There is a significant lack of capital available at the moment. Most of the available funds are going to companies that have a modicum of profitability, or line of sight to profitability. The startups with higher levels of risk or that are at a very early stage are the ones that are struggling the most,” writes one local Reddit user with a background in fintech.

Another puts it simply: “In Canada a startup is not really allowed to fail. Whereas in places like Silicon Valley it is totally Okay to fail.”

Put yourself in an investor’s shoes. Which startup would you invest in…

1. One with a crazy idea nobody’s ever done before, no MVP, and no customers.

OR…

2. One with a profitable MVP?

Many founders want local investors to become more adventurous, to start writing checks for bold ideas the same way San Francisco once did during its wildest years.

Paul Graham has written about these “gold rush” cycles. Each new wave of technology brings a flood of money, but after some time, investors and the market get more cautious and raise the bar for what gets funded.^[1]

A recent comment from Hacker News states, “venture capital is moribund except AI… and even that is hyper-concentrated in giant, late-stage rounds”.^[2]

So, rather than wishing investors would be riskier, maybe founders in Vancouver, BC need to change their approach.

Startups can take control by simply becoming less risky.

Today’s AI tools and no-code platforms make it easier than ever to bootstrap and launch a minimum viable product quickly. With early user traction, founders can pitch proof instead of just hope. This is what Y Combinator and many top investors now look for today in 2025 and beyond..^[3]

Another Redditor summed it up with, “You could have the best idea in the world but if you don’t have the best talent at your fingertips, you aren’t going to get the money you need.”

This is a reminder that showing real progress makes all the difference.

That is why the launch of Althra, a new Vancouver incubator, is pretty interesting for the city’s early-stage scene.

Althra runs a four-month cohort where founders can build a working prototype, have free office space, get personal mentorship from experienced local entrepreneurs, and connect to real feedback.

Incubators like Althra can help founders by providing support to build and test products quickly, gather real market feedback, and develop a track record before looking for serious investment.

From their site, under their benefits section, “Get help securing your first 3 customers”. They understand how important it is to prove an idea with actual paying customers before pitching investors.

These kinds of programs can help early-stage startups to reach profitability or at least show strong momentum, which in turn gives investors something solid to back.

But, whether or not you’re in an exclusive incubator like Althra, you can take these principles to your own startup- move fast, fail often, get customers, and present evidence to investors that will make your pitch a slam dunk.

So, maybe the best way for Vancouver to see more investments is not to wait for the old era of wild speculation to return… but to de-risk your idea and work with investors where they’re at today, because VC is likely to become even more risk averse as time goes on.

References linked:

• Paul Graham on Startup Investing Trends
• Y Combinator’s Guide to Seed Fundraising
• Hacker News: In 2025, venture capital can’t pretend everything is fine any more
• BetaKit: Former Graphite Ventures analyst to launch new Vancouver incubator Althra

This article was written by and reflects the opinions of Raxxos Technology Inc., a Managed IT Services provider located in Surrey, BC and serving small to medium size businesses across the Lower Mainland and Greater Vancouver Area.

If you run a startup, or a business in British Columbia at any stage, and you need help managing or scaling your IT infrastructure, we offer free consultations with no strings attached. Access our expertise supporting the IT infrastructure for hundreds of local businesses over the past 15+ years.