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
- $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.
- $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.