Canadian special purpose acquisition corporations (SPACs) as investment vehicles approved to be waste of investors' time and money: 5 of 8 SPACs (since 2021) redeemed, 2 pending QAs, 1 completed QA performed extremely poor.
BDC reported net loss $637.9M in FY 2023 for the VC program, compared to net income of $988M in FY 2022. One can look beyond BDC's own numbers for clues about the performance of Canadian venture capital.
Canadian VC recovered in Q2 to report $3.25B in total disbursements for first half of 2023. US VC and US corporate VC propelled recovery with $1.06B invested, representing almost 1/3 of the total funding
Based on annualized results from first half results (34 IPOs for $172M), 2023 would be on its way to raise $344M AND become the worst IPO year in term of total amount raised, representing less than 50% of the $799M raised in previous worst IPO year in 2016.
Canadian companies, The Lion Electric Company, Li-Cycle Holdings Corp, TMC the metals Co Inc., D-Wave Quantum, Inc., Hammerhead Energy Inc., that went public on NASDAQ and NYSE by way of SPAC qualifying acquisition (QA) performed poorly
Though down substantially from Canada's best VC year 2021, 2022 managed to hold its place as the second best year since 2017. US and international invested $5.94B accounting for 63% of total disbursements.
21 Canadian IPOs completed on CSE, TSX-V, TSX and NASDAQ in Q1 2023. Lithium Royalty's $150M TSX IPO accounted for 87% of amount. CSE's 8 IPOs accounted for 80% of non-CPC IPOs. Lucy Scientific Discovery'S US $5.8M NASDAQ IPO was sole Canadian IPO on foreign exchange
BlackRock Asset Management Canada led all investment fund managers in $1B+ fundraising funds in 2022, following by Fiera Capital, TD Asset Management, CI Investments, RBC Global Asset Management, I.G. Investment Management, BNY Mellon Asset Management Canada, 1832 Asset Management, Canada Life Investment Management, NT Global Advisors, Mercer Global Investments Canada
2,415 investment funds raised $175B in 2022 with Ontario and Toronto based funds leading with $112B and $107B respectively. Ontario investor led all other jurisdiction investors, investing $89B in 2022.