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;
- 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.;
- $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