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CVCA Announces Record Canadian Venture Capital Investment in 2021: $5.6B Invested in Q2; and Strongest First Half on Record with $8.3B Invested
Wednesday, September 15, 2021
VC investment in 2021 has already eclipsed all previous years
$5.6B Invested in Q2; Strongest First Half on Record with $8.3B Invested
Vancouver, BC, September 15, 2021--(T-Net)--The Canadian Venture Capital and Private Equity Association (CVCA) announced that CAD $5.6B has been invested across 216 deals in Q2-2021 bringing the total VC investment to CAD $8.3B across 394 deals for the first half of 2021; eclipsing all previous full-year totals on CVCA records.
There were 39 mega-deals (CAD +$50M) in H12021 totalling CAD $6.2B and accounting for 75% of total dollars invested in the half; a sharp increase from the four mega-deals in H12020.
H12021 saw the largest funding round on record, with Toronto-based Fintech company Wealthsimple closing CAD $750M in growth funding in May.
The average deal size in H12021 was CAD $21M, an all-time high. Over 59% of the 394 deals were less than CAD $5M, with most of these deals ranging between CAD $1M-5M.
There have been 30 exits since the beginning of the year with a total value of CAD $5.9B. Included in the top exits were NASDAQ's CAD $3.5B acquisition of Verafin Inc. in February, Dialogue Health Technologies Inc.'s (TSE: CARE) CAD $779M IPO on the TSX in March, and Thinkific Labs Inc.'s (TSE: THNC) $232 million IPO on the TSX in April.
"We are continuing to see the results of the government's Venture Capital Catalyst Initiative (VCCI) and the impact of Canada's maturing technology ecosystem. The increase in larger exits has prompted an increased interest for more capital into Canadian funds and higher funding rounds into Canadian companies," said Kim Furlong, Chief Executive Officer, CVCA. "More than half of the VC dollars in the first half of the year have gone towards later stage or growth opportunities, including in the record Wealthsimple investment. Specific growth opportunities like these have helped to make this quarter spectacular."
The information, communications, and technology (ICT) sector received 64% of the total VC investment in the first half of 2021, with CAD $5.3B invested across 232 deals. The life sciences sector received 13% of the investment with CAD $1B across 50 deals, and cleantech received about 4%, with CAD $295M across 22 deals.
About Canadian Venture Capital and Private Equity Association (CVCA)
As the voice of Canada's private capital industry, the Canadian Venture Capital and Private Equity Association (CVCA) works with the investors behind some of the biggest innovations fuelling the Canadian economy.
We are focused on broadening industry awareness through market research and networking opportunities so that our members can make the best decisions for their investments. We also advocate on behalf of the industry to ensure sound public policy that encourages a favourable environment for investment.
The CVCA is proud of its track record of delivering value to its members. With this support, our members excel at driving economic growth, creating jobs, and fostering healthy communities.
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