EDC brings its big balance sheet and contact book to the AI business

Export Development Canada (EDC) has become a significant investor in Canada’s AI sector, using its cash and vast network of international connections to help firms grow into new markets. The Crown corporation says it has put more than $500 million into Canadian AI startups and scale-ups via direct deals, and more than $200 million through its backing for investment funds. Those figures are as of March.

EDC’s aims include filling financing gaps in the AI technology stack and boosting Canada’s trade in professional and technical services. Guillermo Freire, senior vice-president of EDC’s mid-market group, stated that they identify companies that they believe have the potential to become global champions.

Investing in Canadian AI Startups

The agency’s portfolio includes Toronto-based model makers Cohere and Waabi, as well as hardware firms Spark Microsystems, Tenstorrent and VueReal, and AI tool developers Boosted.ai and CoLab AI. EDC is also an investor—or limited partner (LP) in industry terms—in funds from major AI financiers like Inovia Capital, Intrepid Growth Partners and McRock Capital.

A key draw is the agency’s network of contacts in markets around the world. For most of EDC’s portfolio firms, they aren’t the biggest cheque by far, said CEO Alison Nankivell. They have been helping them with global connectivity in a way that other investors can’t.

For example, EDC has facilitated introductions for enterprise-focused Cohere to big businesses in countries like Germany, Korea and Japan, Nankivell said. The agency’s network includes industrial conglomerates like LG—with which the Canadian firm is now co-developing models, as well as Mitsui, Mitsubishi and Siemens.

Cohere spokesperson Kyle Lastovica said EDC has been a constructive partner in helping the firm build commercial relationships. Inovia partner Hugues Lalancette said the agency has recently helped both his Montreal-based venture firm and startups in which they’re both invested to make connections in the Gulf region.

EDC’s role in helping the firm build relationships is a key aspect of its investment strategy. They provide a network of contacts that helps firms grow into new markets.

Providing Patient Capital

EDC backed Toronto-based Boosted in a previously unannounced round that closed in the first quarter, led by Information Venture Partners. The investment had an important consequence for Boosted: it helped keep the firm Canadian-controlled. CEO Joshua Pantony said they would have had to switch to being an American company in their last funding round if it wasn’t for the fact that EDC existed.

Pantony also pointed to the agency’s long-term approach and ability to keep investing over time. They are patient capital, he said, adding that he appreciated how rapidly the agency came to terms. The pace in AI is so fast that firms want to get their fundraising done quickly and focus on execution.

EDC has scale that not a lot of LPs in Canada have, said Lalancette, citing the size of the agency’s balance sheet and ability to write larger cheques. They are also a faithful backer, committing to multiple funds over time. As of March, EDC has invested over $700 million into the Canadian AI sector via startup fundraising rounds and the venture funds it backs.

Globally, firms in the sector raised US$407 billion across 3,500 deals in the first half of 2026, according to PitchBook data. In Canada, AI accounted for 65 per cent of the $2.69 billion that startups raised over that same period, according to the Canadian Venture Capital and Private Equity Association. EDC executives say they are focused on areas critical for Canada that are not receiving that amount of capital.

They are financing startups bringing AI to traditional Canadian industries, like Calgary’s GeologicAI, which helps mining firms find resource deposits, and Edmonton’s Nanoprecise, which sells sensors and software to monitor industrial equipment.

EDC’s business connections program has helped set up and finance 1,300 contracts worth a combined $1 billion for about 250 Canadian firms since 2018, including AI deals like Vancouver-based SimplyAsk’s December 2025 tie-up with Mexican telecom Axtel. This program is a key aspect of their investment strategy, providing support to firms in the AI sector.

Supporting Canadian Services Exports

EDC’s investment in the AI sector is part of its broader effort to boost the exports of Canadian services. They have provided significant financing and support to firms in the digital technology sector, with nearly two-thirds of its $7.9 billion in financing and support in 2025 going to firms outside the U.S.

The agency’s focus on building future pillars of prosperity for Canada is reflected in its investment strategy, which prioritizes areas such as AI hardware and specialized models or applications. By providing patient capital and support to startups in these areas, they are helping to drive innovation and growth in the Canadian economy. Nankivell said they are very focused on building those future pillars of prosperity for the country, and making sure they are sufficiently global-thinking.

EDC’s ability to provide other forms of financing, such as debt or underwriting large orders, has also been beneficial for Canadian AI firms. For example, they could loan money to firms to buy compute power and other infrastructure to run their applications in international markets. This type of support can be critical for startups looking to expand globally.

In April, Schwarz Group, the corporate parent of German supermarket chain Lidl, committed US$600 million to lead Cohere’s next funding round, as part of a deal that combines the Canadian AI firm with Schwarz-backed rival Aleph Alpha. This investment is a significant vote of confidence in Cohere and the Canadian AI sector, reflecting the growing interest in AI technologies from major international companies.