Q3 - 2019

Canadian VC & PE Market Overview

Venture Capital Highlights & Key Findings

A stunning CAD $2.4B was invested in Q3 — the highest amount since 2013 and almost 80% higher than the CAD $1.3B in the second quarter of 2019. A record-breaking increase in mega-deals ($50M+) drove the investment performance so far in 2019. There were 12 mega-deals in Q3, bringing the YTD total to 23, accounting for more than half of all dollars invested.

Of the 23 mega-deals, nine deals exceeded CAD $100M and three surpassed CAD $200M which included:

  • St. John’s, Newfoundland-based Verafin Inc.’s CAD $515M growth financing with involvement from BDC Co-Investments, Information Venture Partners, Northleaf Capital Partners and Teralys Capital;

Key Findings

  • A staggering $2.4B was invested over 126 deals in the third quarter this year, the highest amount since 2013 and 79% higher than the previous high watermark of $1.3B invested in the previous quarter
  • The average deal size skyrocketed to $19M, almost 3 times that from Q3 last year and a 215% increase compared to the average deal size during the 5‑year period between 2014 – 2018 ($6.1M)
  • This was a record-breaking quarter for mega-deals. There were a total of 23 $50M+ mega-deals this year which accounted for more than half of total dollars invested.

Private Equity Highlights & Key Findings

CAD $1.8B was invested over 94 deals in the third quarter of 2019. The majority of PE activity at 66% remains in the mid market, with deals of CAD $25M and under. There has been one single CAD $1.4B mega-deal (CAD $1B+) so far in 2019 and one deal at CAD $653M with the remainder of PE deals (with disclosed values) below CAD $500M. The largest disclosed private equity deal was:

  • The $1.4B mega-buyout by Thomas Bravo LLC of privately held Londonbased Autodata Solutions Inc.;

Key Findings

  • $1.8B was invested over 94 deals in the third quarter of 2019, 32% lower than the amount invested in the previous quarter and 8% lower than the same quarter from last year
  • The average YTD deal size ($19.4M) was 46% lower than the average deal size in the previous 3‑year period between 2016 – 2018 ($35.7M)
  • With the exception of a single $1.4B mega-deal and one $653M deal all other deals with disclosed values were below $500M with 66% (254 out of 385) of them under $25M

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