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Canadian VC Funding Rose for the Third Consecutive Year in 2019 (Up 16%), Vancouver Hits 6 Year High, According to MoneyTree Canada Report
Monday, February 10, 2020Company Profile | Follow Company
Vancouver, BC, February 10, 2020--(T-Net)--Canadian VC-backed companies raised $4.1B (all figures in USD) over 469 deals in 2019. This record funding amount also marked the third year of increased VC funding.
While funding was up 16% compared to the previous year, deal activity was down 11%, according to the MoneyTree™ Canada report from PwC Canada and CB Insights.
Sabrina Fitzgerald, National Tech Sector Leader, PwC Canada
"Canadian venture-backed companies saw another robust year of record funding, driven by a strong second-half to close off the year. While total deal count did decline, median-deal size has risen by 13%, indicating a healthy and scaling ecosystem. Canada has stood out amongst its global peers as investors continue to recognize the value of Canadian innovation." said Sabrina Fitzgerald, National Tech Sector Leader, PwC Canada.
"Canadian venture capital investment increased for the third year in a row as Toronto and Vancouver hit record funding highs in 2019," stated Anand Sanwal, co-founder and CEO of CB Insights. "Seed- and early-stage rounds made up the majority of deals and investments in Canadian AI, fintech, and cybersecurity companies continue to grow. 2020 is poised to be another big year for Canada's tech ecosystem and as the early stage bets mature, we expect many investors in the US will start looking north and paying more attention to the Canadian tech ecosystem."
As the top Canadian market, Toronto funding surpassed $1.3B for the second year in a row. The deal count of 175 was only 5 below the number of deals in 2018.
Vancouver hit a six-year high for funding as Vancouver-based startups raised $924M in 2019, more than double investment levels seen in 2018. While deal activity fell to 72 deals compared to 109 in 2018, deal activity remains above pre-2018 levels as larger deal sizes drive gains in funding.
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Editors Note: According to T-Net's reporting and statistics, BC tech companies raised well over $2 billion in public and private financings in 2019, with the 10 largest deals last year bringing in over $1.4 billion in new financing.
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Montreal funding and deals remain at healthy levels -- after a strong H2'19, 2019 total funding to Montréal-based companies was $931M, only $11M below 2018 levels. 2019 investment was still above annual funding levels seen before 2018, an exceptionally strong year.
Waterloo and Calgary rounded out the top markets as Waterloo-based companies raised $139M across 25 deals and Calgary-based companies raised $132M across 22 deals
Key 2019 highlights
The MoneyTree report can be found here.
About PwC Canada
At PwC, our purpose is to build trust in society and solve important problems. More than 7,850 partners and staff in offices across the country are committed to delivering quality in assurance, tax, consulting and deals services. PwC Canada is a member of the PwC network of firms with more than 276,000 people in 157 countries. Find out more by visiting us at www.pwc.com/ca.
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PwC refers to the Canadian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see http://www.pwc.com/structure for further details.
About CB Insights
At CB Insights, we believe the most complex strategic business questions are best answered with facts. We are a machine intelligence company that synthesizes, analyzes and visualizes millions of documents to give our clients fast, fact-based insights. Serving the majority of the Fortune 100, we give companies the power to make better decisions, take control of their own future—and capitalize on change.
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