Q1 - 2019

Canadian VC & PE Market Overview

Venture Capital Highlights & Key Findings

In the first three months of 2019, the Canadian venture capital (VC) industry invested CAD $1B across 142 deals. This is the fifth billion-dollar quarter since 2013 and is almost double (48% higher) the investments made in the same quarter in 2018.

There were seven mega-deals ($50M+) in the first quarter which accounted for a 57% share of all dollars invested. Three noteworthy mega-deals include Toronto-based Vena Solutions Canada Incorporated’s CAD $115M growth equity financing from US investors; Squamish-based Carbon Engineering Limited’s CAD $90M round from two US cleantech investors; and Montrealbased Enerkem’s CAD $76M round from a syndicate which included Cycle Capital Management/​Ecofuel, Fondaction CSN, Fonds de solidarite FTQ, and National Bank of Canada

Key Findings

  • $1B was invested over 142 deals in the first quarter of 2019 which is 48% higher than the same quarter in 2018
  • The average deal size was $7.4M, a 56% increase from Q1 last year and a 34% increase compared to the average deal size during the 5‑year period between 2014 – 2018 ($5.5M)
  • There was a total of seven $50M+ mega-deals which accounted for a 57% share of total dollars invested.

Private Equity Highlights & Key Findings

PE Investment was 72% lower in the first quarter of 2019 compared to the same period last year with CAD $1.9B invested over 130 deals. The pace of private equity also slowed in the first quarter with only 9 M&A exits totalling CAD $270M.

The largest disclosed deal in Q12019 was Goodlife Fitness Centres Inc.’s CAD $100M debt financing from Penfund Inc.

Key Findings

  • $1.9B was invested over 130 deals in the first quarter of 2019, 72% lower than the same quarter last year
  • All deals with disclosed values were below $500M with 62% (80 out of 130) of all deals with values less than $25M
  • The largest disclosed deal included: $100M debt financing to GoodLife Fitness Centers Inc. from Penfund Inc.

Files in this Report

Media Inquiries

For questions or to arrange an interview or quote from the CVCA or if you would like connections to our membership, please contact Jon Jackson Head of Communications: jjackson@cvca.ca