Tuesday, June 05, 2018

Canadian Angel and Venture Capital Investments Grow

          By Henry Stewart

Canada still has a ways to go before we can compete with the Americans. But according to the Toronto, ON based National Angel Capital Organization (NACO), Canadian startups received $162.6Mln CDN from angel investors last year, so we might be starting to close the gap.

Even better, the Toronto, ON based Canadian Venture Capital and Private Equity Association (CVCA) has noted that $690Mln CDN was invested in 139 Canadian technology companies in the first quarter of this year.

As outlined in the May 30th, 2018 Betakit post, "NACO Report Says Canadian Start-Ups Received $162.6 Million from Angel Groups in 2017," among the key NACO findings was that Canadian angel groups made 505 investments in 2017, investing a total of $162.6Mln CDN.

The NACO report also indicated that the average deal size reached $1.91Mln CDN, slightly higher than the $1.7Mln CDN average deal size 2016.

The investments were dominated by deals in the information-communication technology (ICT) sector (44% of the total deals with 28% of the dollars invested) and the life sciences sector (16% percent of the deals with 22% of the dollars invested).

The data came from the annual NACO Angel Activity Report, which is based on a survey of 43 angel groups across Canada. The report:
was developed in partnership with the Government of Canada, BDC Capital, RBC, BDO, Ryerson Incubate, and Innovate Network Canada. 
The report highlights key trends and statistics of Canada’s angel market, and finds that angel groups are continuing to support entrepreneurs at all stages including those seeking first-time investments and follow-on investments...

The CVCA report, as outlined in the May 30th, 2018 Betakit post, "CVCA Report: Q1 2018 SEES $690 Million Invested in Canadian Tech," focused on a wider range of Canadian technology investments and didn't restrict itself to tracking only early stage start-up investments.

According to the CVCA report, $690Mln CDN was invested in 139 Canadian technology companies in the first quarter of 2018. According to the report:
this is a six percent increase from Q1 2017, when $649 million was raised. 
According to the report,the  average deal size was $5Mln CDN, a five percent increase compared to Q1 2017.

Three deals, with Toronto, ON based ecobee (an $80Mln CDN Series C round which closed  in March 2018) Toronto, ON based Wealthsimple (a $65Mln CDN deal) and Vancouver, BC based Hootsuite (which closed a $65Mln CDN deal through CIBC Innovation Banking) accounted for a 34% share of the total investment this quarter.

The full CVCA report is available online as part of the May 29th, 2018 Central post, "Q1 2018: Single PE Mega-Deal Dominates Quarter With All Other Segments Slowing; Robust VC Investment In Q1 Follows Two Back-To-Back $1B Quarters In 2017."

Henry Stewart is the pseudonym of a Toronto based aerospace writer

1 comment:

  1. Now have many of those are actively investing in Canadian space hardware start-ups, and not just in space-based services?


Support our Patreon Page