CVCA Reports $1 Billion in Venture Capital Invested in Canada in Q3 2017 (43% Increase from Q3 2016)Monday, November 27, 2017
Canadian VC Experiences Billion-Dollar Quarter in Q3 2017 - 3 BC VC Deals Among the Top 10
$980M invested in Q3 2017; 8% increase from Q2 and 43% increase compared to Q3 2016
Vancouver, BC, November 27, 2017--(T-Net)--Venture capital investment in Canada experienced an extraordinary quarter in Q3 with $980M invested over 149 deals; representing an incredible 43% increase compared to the $683M in Q3 2016.
So far in 2017, $2.6 billion has been invested over 431 deals.
The CVCA reported that it expects this investment pace to continue through the final quarter resulting in the final 2017-year total to top the $3.2B total dollars invested in 2016.
Three BC venture capital deals were among the top 10 in Canada in the 3rd quarter including Vision Critical closing a $76 million financing, Visier closing a $61 million deal, and life sciences company Arurinia Pharmaceuticals closing a $53 million financing.
There have been a record 13 mega-deals (deals $50M or more) so far in 2017 already surpassing the 10 mega-deals in 2016. Deals between $5M and $20M have been a driver of overall year-to-date activity; contributing 21% of the total number of deals and a third of total dollars invested. The average deal size in Q3 2017 was $6.04M; another high mark.
“We've been talking about the venture capital ecosystem doing a level step-up for a while now and we've had two consecutive years with a huge ramp up,” said Mike Woollatt, CEO, CVCA. “With the support of government programs like the Venture Capital Action Plan (VCAP) and the soon-to-be-deployed Venture Capital Catalyst Initiative (VCCI), Canadian companies are scaling. This is definitely a sign of the strength and quality of the VC ecosystem.”
Information and communication technologies (ICT) received the majority of VC investment so far in 2017; receiving 69% of total dollars invested or $1.8B over 271 deals. In 2016, ICT received 61% of VC dollars invested. Life sciences companies received just over a fifth of dollars invested ($554M over 79 deals) compared to 23% in 2016 or $736M over 106 deals.
$1B, representing 40% of VC dollars invested this year, were in Ontario-based companies, 35% ($900M) went to Quebec-based companies while 21% ($544M) was invested in British Columbia-based compa-nies.
Venture Capital Highlights:
- The top 10 VC deals accounted for 53% of the total dollars disbursed in Q3 and included these five mega-deals:
- Leddartech, a Quebec-city based ICT company raised $128M from Fonds de solidarité FTQ.
- Montreal-based life sciences company Milestone Pharmaceuticals Inc. closed its $71M Series C round from BDC Capital's Healthcare Fund and Fonds de solidarité FTQ.
- Borrowell Inc., a Toronto-based ICT company closed a $57M round from an investor syndicate which included White Star Capital.
- Toronto-based ICT company Ritual closed a $53M round from an investor syndicate which included Golden Venture Partners.
- Kitchener-based Tulip.io Inc. closed a $50M series B round from US investors.
About the CVCA
The CVCA is the voice of Canada's venture capital and private equity industry. We are focused on improving the private capital ecosystem by broadening industry awareness and providing market research, networking, and professional development opportunities. We also advocate on behalf of the industry to ensure sound public policy that encourages a favourable investment environment. The CVCA works alongside its members, who represent the vast majority of private capital firms in Canada, to improve the industry and drive innovation and growth. Please visit: http://www.cvca.ca.
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