Blakes upRound™: July 2025

July 15, 2025

In this Edition

What founders and startups need to know about employment law to protect their interests as a company matures.
New regulations for Ontario employers, new guidelines on the national security review of investments, enhanced capital-raising flexibility for Canadian public companies, tariffs, and other need-to-know topics.
If last year was any indicator, there is hope that we will see a jump in market activity in the second half of 2025.

Market Insights

Employment Law Considerations for Founders in Emerging Companies — Founders of early-stage companies contribute time and effort well before any formal corporate structure is in place. As a startup matures, it becomes increasingly important to formalize the relationship between the founder and the company, particularly because the founder can occupy multiple legal roles such as shareholder, director, officer and employee. Each role carries distinct rights and obligations, and it’s important to understand their nuances.

Legal Update

Founders and investors may find the following insights from our Blakes colleagues helpful and instructive:

New Regulations for Ontario Employers — This Blakes Bulletin: Working for Workers Acts Four, Five and Six: In-Force Dates and New Regulations for Ontario Employers summarizes key elements of recent employment-related bills passed in the Ontario legislature that will impact Ontario employers.
New Guidelines for Investments — Amid unprecedented trade tensions with the United States, on March 5, 2025, the Government of Canada released updated Guidelines on the National Security Review of Investments under the Investment Canada Act (ICA). The guidelines are intended to inform investors of the government’s policies and criteria for administering the national security review process under the ICA. Learn about the updated guidelines in our Blakes Bulletin: Canada Revises its National Security Review Guidelines for Investments.
CSA Expands Listed Issuer Financing Exemption — On May 14, 2025, the Canadian Securities Administrators (CSA) announced Coordinated Blanket Order 45-935 – Exemption from Certain Conditions of the Listed Issuer Financing Exemption. The blanket order aims to enhance capital-raising flexibility for Canadian public companies by, among other things, increasing the limit on capital-raising under the existing Listed Issuer Financing Exemption. Learn more in our Blakes Bulletin: A New Lease on LIFE: CSA Expands Listed Issuer Financing Exemption.
Tariffs: Lawsuits and Timeline of Key Dates — Since February 1, 2025, United States President Donald Trump has issued a number of executive orders imposing tariffs on countries around the world, including Canada. As the tariff landscape continues to shift, the number of lawsuits challenging the lawfulness of these tariffs continues to grow. We review some of these notable lawsuits in our Blakes Bulletin: Legal Challenges to U.S. Tariffs Escalate and summarize key tariff-related developments in U.S.–Canada Tariffs: Timeline of Key Dates and Documents.
Competition Law — The current economic climate has the potential to reshape traditional norms and patterns for regulatory reviews under the Competition Act and the Investment Canada Act. Read more in our Blakes Bulletin: Navigating Compliance: Competition Law and Foreign Investment Reviews Amid Tariffs and Trade Tensions.

Deal Monitor

Data sourced from PitchBook.

So far in 2025, early-stage and late-stage deals represent nearly all of the total deal value, comprising 49% and 47%, respectively. Growth equity deals saw the largest share of deal value for 2024, comprising 38% of total deals.
IT investments continue to be the most active industry, comprising half of the top 20 deals and 40% of total deals. Healthcare investments, which were slow in the first half of 2024 but doubled in value to end the year, have continued their momentum in 2025, comprising 22% of total deals. Other active industries include Commercial Products & Services, Materials and Resources, and Energy, making up a combined 34% of total deals.
Among the largest transactions to date was Toronto-based Tailscale’s US$160-million Series C venture funding led by Accel, with participation from Heavybit, Uncork Capital, CRV, Insight Partners, George Kurtz, and Anthony Casalena, putting the company’s pre-money valuation at US$1.29-billion. The funds were used to expand the company’s global operations and grow its engineering, product and sales teams.
Other notable transactions so far in 2025 include Aspect Biosystems’ US$115-million Series B funding led by Dimension; Destiny Copper’s US$80-million Series A funding led by The BMI Group; and Moonvalley’s US$70-million seed funding led by General Catalyst and Khosla Ventures.

Chart showing year-over-year sector investment activity, 2018-2025

Looking at the data from this time last year (June 2024), the total number and value of deals are nearly identical to this year (see our June 2024 edition of Blakes upRound). If 2024 was any indicator, there is hope that we will see a jump in market activity in the second half of 2025.