Venture Capital Highlights & Key Findings
Following years of consistent investment growth across all stages in the ecosystem, Canadian venture capital investment reached impressive new heights in 2019 with a record CAD $6.2B invested over 539 deals.
This is 69% more than the CAD $3.7B invested in 2018 and three times more than when the CVCA began market analysis in 2013. Q42019 significantly contributed to the year’s total, with CAD $1.6B invested over 144 deals.
- For the third successive quarter in a row, Canadian VC investment crossed the $1B mark with $1.6B invested over 144 deals bringing the year to a record $6.2B over 539 deals, 69% more than the $3.7B in 2018 and three times more than in 2014
- The average deal size reflected this sharp increase and ended the year at $11.6M, almost double the average for the previous 5‑year period from 2014 – 2018 ($6.1M)
- A record high 28 $50M+ mega-deals accounted for 54% of total VC investments, up from its 33% share in 2018.
Private Equity Highlights & Key Findings
The closing of Garda World Security and Westjet Airlines in the last quarter raised PE investment in 2019 to a total disclosed value of CAD $19B over 526 deals, 16% less than the CAD $22.7B in 2018, and 38% higher than the previous low of CAD $13.8B in 2016.
For the second year in a row, the sum of mega-deals exceeded the sum of all other deals combined: CAD $11.6B out of CAD $19B in 2019 and CAD $14.4B out of CAD $22.7B in 2018. There were three $1B+ mega-deals this year.
- The closing of two mega-deals made it the best fourth quarter for PE since 2014. This last quarter surge elevated PE activity in 2019 to a total disclosed value of $19B over 526 deals, 16% shy of the $22.7B mark in 2018, and 38% higher than the previous low of $13.8B in 2016.
- The average deal size ($36.1M) was marginally higher by 1% than compared to the previous 3‑year period between 2016 – 2018 ($35.7M)
- Excluding the three $1B+ mega deals, the PE average deal size was $14.2M which was relatively unchanged from $14.1M in 2018. Two-thirds of all PE deals were below $25M