According to the Canadian Venture Capital Association’s latest report, $652 million was invested over 127 deals, bringing the year- to-date total venture capital investment to $2.4 billion. This is 12 percent lower than in Q3 2017.
While the quarter was slower than Q3 2017, the CVCA said it anticipates 2018 to close similarly to last year. The average deal size in Q3 2018 was $5.1 million; a 22 percent decrease from the previous quarter, and three percent lower compared to the average deal size between 2013 to 2017 ($5.3M).
“The Canadian venture capital ecosystem is thriving,” said Darrell Pinto, interim COO of Canadian Venture Capital and Private Equity Association. “With the recent VCCI infusions into the industry, we are fully anticipating the year to close positively.”
Over the past year, the top 10 deals have totaled $724 million; representing a 30 percent share of total dollars invested.
Deals between $5 million to $20 million captured 36 percent of total dollars invested, a seven percent increase from its share last year.
The organization called out two particular mega-deals that hit over $50 million in Q3, which brought the year-to-date total up to 9 mega-deals worth $700 million. The two mega-deals in Q3 included Montreal-based Hopper’s $129 million Series D, led by OMERS Ventures and included participation from BDC IT Venture Fund, Brightspark Ventures and Caisse de dépôt et placement du Québec, and Toronto-based Kira Systems’ $65 million minority investment.
Deals between $5 million to $20 million captured 36 percent of total dollars invested, a seven percent increase from its share last year. Ontario-based companies received 53 percent of investment ($1.3 billion), up from the province’s 39 percent share last year. Quebec-based companies received 23 percent ($558 million), followed by BC-based companies with a 15 percent ($363 million) share.
Feature photo via Unsplash.