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
Q1 2023 Canadian VC disbursements barely passed $1B with life support from governments and strong fundraising by Quebec companies. $146M raised by VC firms is of concern.
Canadian listed companies raised $121M in Q1 2023 by way of Listed Issuer Financing Exemption (LIFE), averaging $79K, far behind $579K per investor by accredited investor exemption.
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
Canadian Financings - Crypto and SPAC focused investment funds experienced substantial drop in fundraising in 2022 from 2021.
Q4 2022 Canadian VC is poised to easily reach $2.2B mark, primarily driven by investments from US and international investors. As of 2022 year-end, $2.18B was tallied for Q4 and $8.19B for year 2022. (preliminary)
BC based MICs, private REITs, and Syndicated Mortgage Funds raised $2.7B from Canadian and foreign investors in 1st nine months of 2022. BC investors invested $2B (74%) while Chinese investors led all international investors with $22.7M.
Canadian VC continued downward spiral reaching $950M in Q3 2022 and $5.86B for first nine months of 2022. US investor share decreased from 56% in Q1 to 45% in Q3, any further drop would drag the total amount down further in Q4 2022.
Q3 2022 Canadian exchange IPOs: 9 non-CPA/SPAC IPOs, bringing YTD number of non-CPA/SPAC IPOs to 37: The Canadian Securities Exchange (CSE) and Mining led with 21 (57%) and 27 (73%) respectively.
US and international investors reduced Canadian VC investments to $726M (62%) from $2,579M (73%) in Q1 2022. US and International investors still accounted for lion's share (70%) of total H1 2022 VC disbursements.
H1 2022: US and foreign investors invested $2.62B and $689M or 55% and 15% of total disbursements respectively while Canadian investors invested $1.41B or 30% of total, up from historical low of 27% in Q1 2022.
Carbon Capture VC investments pose concerns: 1) 4% (lowest since 2017) of total cleantech disbursements in H1 2022; 2) heavily concentrated in BC, Quebec, Nova Scotia; 3) primarily backed by US investors with Canadian investors on the sidelines.