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Access to Capital

Toronto is the business capital of Canada, representing one-fifth of the country's GDP and offering investors and companies unparalleled access to capital. Businesses choosing to locate in Toronto benefit from the relative ease at which they can access capital compared to their global competitors. This ability to easily access capital allows businesses in Toronto to invest in new technology and talent, and finance operating costs as needed.

In 2009, for the second year in a row, Canada topped the Milken Institute's Capital Access Index (CAI). The CAI scores the ability of entrepreneurs in 122 countries to gain access to financial capital. It not only measures "the breadth, depth and vitality of capital markets, but also openness in providing access without discrimination." The CAI cites Canada's stable housing markets and healthy banking system as the main reasons for superior access to capital. For a complete summary of Canada's results on the Capital Access Index click here.

The numbers speak for themselves:

  • Canada ranks 2nd on the Milken Institute's Financial & Banking Institution Sub-Index, illustrating the high capital flow between deposit-taking institutions and Canadian businesses.
  • In 2009, over $1 billion in venture capital flowed to innovative and aspiring businesses in Toronto and across Canada.
  • The TMX Group, ranked as the sixth largest exchange group in the world by equity capital raised, has a total market cap equal to $1.3 trillion.

In addition to private sector (Chartered Banks and venture capital) investments, the federal and provincial governments have established a wide range of programs that offer financing, grants and loans to businesses in Toronto. These programs support both small and medium-sized enterprises, as well as large multinational corporations at all levels of development. For more information on how to access capital in Toronto see the following pages:

report
Capital Access Index: Best Markets for Access to Business Capital
An annual ranking of entrepreneurial access to capital around the world.
Year: 2009
Categories: Access to Capital
report
Financial Solutions for Buyers of Canadian Products
Export Development Canada provides direct buyer loans, lines of credit, loan syndication and leasing to Canadian companies exporting products globally
Year: 2010
Categories: Access to Capital, Trade
report
Toronto Stock Exchange and TSX Venture Exchange: A Capital Opportunity
High-level presentation from the TMX Group. The TMX Group is the parent company of the Toronto Stock Exchange (TSX) and TSX Venture Exchange.
Year: 2010
Categories: Access to Capital, Finance
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