According to a Q1 2018 report from the CVCA, $690 million was invested in 139 Canadian companies.
The organization said that this is a six percent increase from Q1 2017, when $649 million was raised. When BetaKit last reported on CVCA’s numbers from Q1 2017, the organization said that Q1 2017 saw $713 million invested. BetaKit was told that each new industry report is subject to the most up-to-date information taking into account new information being provided by members on a lagging basis.
The average deal size was $5 million, a five percent increase compared to Q1 2017. Compared to the average deal size in the five-year period between 2013 to 2017 ($5.3 million), this represents a six percent drop. Deals between $1 million to $5 million captured 16 percent of total dollars invested.
The report calls out specific deals that accounted for a major increase in investment dollars, as three deals over $50 million in Q1 2018 accounted for a 34 percent share of the total investment this quarter. These include Toronto-based ecobee, which recently closed $80 million in its Series C in March; Toronto-based Wealthsimple, which raised $65 million; and Hootsuite, which closed $65 million from CIBC Innovation Banking.
“The Canadian venture capital ecosystem continues to capitalize on Canada’s strategic advantage in a number of areas, resulting in very competitive returns in many sectors,” said Mike Woollatt, CEO of the CVCA. “In order for this trend to continue, we will be working hard with government and other stakeholders to ensure Canadian regulation and taxes are competitive to help foster an ongoing competitive edge.”
By province, Ontario-based companies received 55 percent of investment ($379 million), up from its 38 percent share last year; BC-based companies received 19 percent ($131 million); and Quebec-based companies received an 18 percent ($125 million) share. By city, Toronto received almost half of investment dollars ($337 million over 45 deals), with Vancouver trailing at 18 percent of deals ($127 million over 18 deals) and Montreal receiving 12 percent of deals ($83 million over 18 deals).
The report also notes that 2017 performed better than expected considering deals that weren’t disclosed until this year. Toronto-based Wattpad’s $61.25 million round from Tencent and Enertech’s $280 million deal were cited as examples.
Access the full report here.
Photo via Unsplash.