VC & PE Canadian Market Overview // YTD Q3 2016

00-title-page_q32016

Summary

The CVCA’s VC & PE Canadian Market Overview report is Canada’s authoritative summary analysis of private capital investments, exits and fundraising activity relied on by government and private sector groups that drive the nation’s innovation.

Read this report if you are interested in:

  • Understanding most recent private VC & PE investment against historical context,
  • Identifying top trends in the private capital asset class,
  • Identifying hot spots for investments by sector and province,
  • Identifying most active investment firms.

This is the second report of four installments this year. All data in this report has been sourced from CVCA Infobase, a proprietary database containing over 2,800 venture capital and private equity deals across over 2,600 Canadian companies. Click here for a full description of how to become a CVCA Member to obtain access to Infobase.

YTD Q3 2016 Highlights

Venture Capital Highlights:

  • $203M was invested in 40 deals in Q3 bringing the YTD total to $629M (over 115 deals). That’s a 31% increase over the $481M invested in the first three quarters of 2015.
  • Average deal size grew 49% to $5.5M YTD compared to $3.7M for the previous three-year period.
  • DalCor Pharmaceuticals was the largest disclosed deal this year ($128M).
  • ICT captured the lion’s share of VC dollars invested: 39% ($244M) over 67 deals. Life sciences was second with a 32% share ($199M) over 19 deals.
  • Investment in agribusiness sector is growing steadily: $7M in 2013, $20M in 2014, $30M in 2015 and $56M in just the first three quarters of 2016, a jump of 87% over 2015.
  • $404M or over two-thirds (64%) of VC dollars was invested in seed/early-stage companies; $224M or 36% was invested in later stage companies.
  • Quebec-based institutions continue to be a key investment source in the province investing in 73 of the 115 deals (64%) this year.

Private Equity Highlights:

  • Mirroring the pattern in the rest of the country, year-over-year PE investment declined: $2.3B (over 140 deals) in the first three quarters of 2016, a decrease of 50% from the $4.5B (over 122 deals) during the same period last year.
  • Average deal size to date in 2016 shrunk significantly to $16.4M, down 59% from the average deal size for the last three-year period ($39.9M).
  • Sector shifts to watch: Traditional favourites such as mining and resources ($137M invested in 17 deals) and industrial and manufacturing ($134M in 34 deals) have been overtaken by cleantech ($995M in 6 deals) and ICT ($201M in 17 deals).
  • The $800M mega deal in Services Matrec Inc. accounted for the relative spike in cleantech.
  • Two large undisclosed deals in ICT ($134M and $58M) accounted for the relative spike in ICT.
  • 36% of all PE dollars was directed to growth deals ($822M) followed by 35% directed to add-on deals ($800M).
  • 6 out of the top 10 YTD PE investors are Quebec-based institutions.

Read the Reports

VC & PE Canadian Market Overview Reports:

English Market Overview Report

French Market Overview Report

VC & PE Quebec Market Overview Reports:

English Quebec Report

French Quebec Report

Read the Media Releases

YTD Q3 2016 Canadian Media Releases:

English Media Release

French Media Release