VC MEMBERS: Become a part of The 50: A Guide to the Canadian VC Ecosystem! Deadline: Jan. 29

Weekly Roundup
DECEMBER 82020

Weekly Roundup

The latest transaction and private capital news from the previous week(s)

Editorial Note

The final Weekly Roundup of 2020 will be delivered on December 21 and will include those transactions that are received by December 17, 3pm ET. The first Weekly Roundup of 2021 will be delivered on January 11 and will include those transactions and industry news that the CVCA receives between December 17, 3pm ET to 5pm ET, January 7, 2021. We appreciate your understanding.

Private Equity at Work

On December 1, 2020, CVCA shared the results of a new study on the economic impact of private equity in Canada. The Study was based on findings from PwC Canada and was commissioned by the CVCA. The study demonstrates that, in partnership with founders and management teams, PE funds have a significant positive impact on investee companies, particularly through employment growth, capital investment and productivity gains.

P Eat Work CVCA social Card 01

Invest Canada Webinar Series

Created in the early 1980s to support the economy that was affected by a severe recession, the Fonds de solidarité FTQ has now become a key Canadian player with CAD $13.8 billion in net assets. Through its diverse types of investments in unsecured debt and equity financing, the Fonds has positioned itself as a partner of choice for entrepreneurs, and a major contributor to the financial ecosystem across Canada.

Join the Fonds team: Daniel Hinse, Vice President, Investments, Didier Leconte, Vice President, Investments — Funds Management, and Janie Béïque, Executive Vice President, Investments, for a lively discussion on the evolution of this key Canadian player next Monday, December 14 at 1PM ET.

Fonds FTQ Webinar Graphics V3 02

November 26 — December 3 Venture Capital Deals

Germany-Based Ulti​mate​.ai Secures Early Stage Funding Round With Participation From OMERS Ventures

Deal Size: USD $20M
Type
: Early Stage
Sector:
ICT
CVCA Member Investors:
OMERS Ventures
Disclosed Investors Involved:
Felicis Ventures, HV Capital, Maki​.vc

Quebec-Based NoviFlow, Inc. Secures Later Stage Funding Round With Participation From Fonds de solidarité FTQ, Export Development Canada

Deal Size: CAD $8M
Type:
Later Stage
Sector:
ICT
CVCA Member Investors:
Fonds de solidarité FTQ, Export Development Canada
Disclosed Investors Involved:
Somel Investments

Maryland-Based SalesBoomerang Secures Debt Funding Round With Participation From Espresso Capital

Deal Size: USD $5M
Type:
Debt
Sector:
ICT
CVCA Member Investors:
Espresso Capital
Disclosed Investors Involved:
None

Quebec-Based Planned Secures Early Stage Funding Round With Participation From inovia Capital

Deal Size: CAD $4.7M
Type:
Early Stage
Sector:
ICT
CVCA Member Investors:
inovia Capital
Disclosed Investors Involved:
Telegraph Hill Capital, N49P

California-Based Datafold Secures Seed Funding Round With Participation From Good News Ventures

Deal Size: USD $2.1M
Type:
Seed
Sector:
ICT
CVCA Member Investors:
Good News Ventures
Disclosed Investors Involved:
New Enterprise Associates

California-Based ServiceNow to Acquire Quebec-Based Element AI

Deal Size: N/A
Type:
Exit
Sector:
ICT
CVCA Member Investors:
Caisse de dépôt et placement du Québec, BDC Capital, Real Ventures, Investissement Québec
Disclosed Investors Involved:
DCVC, Government of Quebec, McKinsey & Company, Hanwha Asset Management

Ontario-Based Tulip Acquires California-Based Timekit

Deal Size: N/A
Type:
M&A
Sector
: ICT
CVCA Member Investors:
BDC Capital
Disclosed Investors Involved:
Kleiner, Perkins, Caufield & Byers, Jump Capital

Ontario-Based Tulip Secures Growth Funding Round With Participation From BDC Capital

Deal Size: N/A
Type
: Growth
Sector
: ICT
CVCA Member Investors:
BDC Capital
Disclosed Investors Involved:
None


November 26 — December 3Private Equity Deals

CSE Utility Management Acquires Ontario-Based Cricket Energy Holdings

Deal Size: CAD $200M
Type:
M&A
Sector:
Oil, Gas & Power
CVCA Member Investors:
Third Eye Capital
Disclosed Investors Involved:
None


California-Based EZ Texting Secures Debt Funding Round With Participation From CIBC Innovation Banking

Deal Size: USD $13M
Type:
Debt
Sector:
ICT
CVCA Member Investors:
CIBC Innovation Banking
Disclosed Investors Involved:
None

California-Based NVISION Eye Centers Secures Buyout Funding Round With Participation From Ontario Teachers’ Pension Plan

Deal Size: N/A
Type:
Buyout
Sector:
Consumer & Retail
CVCA Member Investors:
Ontario Teachers’ Pension Plan
Disclosed Investors Involved:
None

Novacap and IQ Acquire Quebec-Based Logibec

Deal Size: N/A
Type:
Buyout
Sector
: ICT
CVCA Member Investors:
Novacap Management, Investissement Quebec
Disclosed Investors Involved:
None

Ontario-Based Brunswick Bierworks Secures Growth Funding Round With Participation From Clairvest Group Inc.

Deal Size: N/A
Type:
Growth
Sector:
Agribusiness
CVCA Member Investors:
Clairvest Group Inc.
Disclosed Investors Involved:
None

New Brunswick-Based LuminUltra Acquires Florida-Based Source Molecular

Deal Size: N/A
Type:
Add-on
Sector:
Life Sciences
CVCA Member Investors:
XPV Water Partners
Disclosed Investors Involved:
None

Quebec-Based Kore Outdoor Acquires Quebec-Based G.I. Sportz

Deal Size: N/A
Type:
Add-on
Sector:
Consumer & Retail
CVCA Member Investors:
Fulcrum Capital Partners
Disclosed Investors Involved:
None

Illinois-Based Acquires Quebec-Based Seymour Alper

Deal Size: N/A
Type:
Add-on
Sector:
Financial
CVCA Member Investors:
Altas Partners
Disclosed Investors Involved:
Hellman & Friedman



New from CVCAToronto’s Flourishing Tech Scene Attracts Investors

Toronto’s Flourishing Tech Scene Attracts Investors is a contribution to CVCA Central from Crédit Mutuel Equity.

Toronto’s flourishing tech hub continues to grow rapidly and to shine around the globe. The recent inauguration and opening of La French Tech Toronto is just another example of the city’s growing power of attraction as one of the world’s most dynamic tech ecosystems.

The Silicon Valley of the North

With 15,000 tech companies, 5,200 start-ups, and 16 colleges and universities, the Toronto-Kitchener-Waterloo corridor is the largest tech hub in North America after Silicon Valley. Ontario’s capital had 230,000 tech workers in 2018, and the fastest-growing job creation rate in North America with its 54%+ growth over the last five years. This represents a higher growth rate than San Francisco, New York, and Seattle combined, according to an American CBRE study, making it an increasingly attractive market for tech sector investors. In fact, venture capital investments in the region have grown massively year over year, reaching over $2.3 billion in 2019 which represents a 68% increase compared to 2018.

I Stock 1069427456 1920x0 c default

The Venture Capital Model Transaction Documents have been revised by the Working Group to reflect changes made by the NVCA to the corresponding NVCA model documents in the summer and early Fall of 2020.


The Kauffman Fellows Program

Dear Partners,

As part of our Women in Tech initiative, BDC is proud to, once again, support further education for GPs in Canada by offering a partial scholarship to the Kauffman Fellows Program. For the past 25 years, Kauffman Fellows has designed the curriculum and peer learning program which encourages personal and professional growth, gives Fellows the exposure to over 700 members worldwide and provides unprecedented access to new opportunities. You can find more information about the program on https://​www​.kauff​man​fel​lows​.org/​t​h​e​-​k​a​u​f​f​m​a​n​-​f​e​l​l​o​w​s​-​p​r​ogram.

If you are interested in applying to Kauffman Fellows, are prepared to contribute financially to your tuition, and have the support of your firm to participate in all nine quarterly class-gatherings with your cohort from June 2021 to June 2023, please contact Sandra Novotni at sandra.​novotni@​bdc.​ca or Ela Borenstein at ela.​borenstein@​bdc.​ca for more information, before January 12, 2021.
BDC is committed to continuing to improve the venture capital ecosystem in Canada and sees unparalleled value in the Kauffman Fellows Program. Deadline for a final application is January 30, 2021.

Kauffman fellows logo 1 300x242