Canadian VC – Series A and B dominates while growth stage increases

CPE Analytics

Updated on:

Series A and Series B financing led Canadian venture capital investment activities in 2016, according to the 2016 venture capital study from CPE Media Inc. with data compiled from Private Capital Dealbase.

In 2016, 317 rounds of venture capital financing for $3.02 billion was reported in Canada. Series A round investments attracted 50 rounds (16%) of financing for investment amount of $710 million (25%) while Series B investments secure 28 rounds (95) for $638 million (21%).

Seed investments led the specified rounds with 72 rounds (23%) for $165 million (5%).

Particular to Canadian markets, the “un-series” investments, investments not classified into any Series, attracted 140 rounds (44%) for $1 billion (33%), leading all series. Majority of the investments are growth-stage type and the clear indication that growth stage investments are increasingly becoming important in Canada.

Methodology

Data is complied from Private Capital Dealbase, CPE Media’s all new private capital deal database. Information is collected and cross-verified from numerous public sources.
Venture Capital deals include equity and quasi-equity investments led by professionally managed funds, family offices, private investment firms/merchant banks, corporate strategic investment units, and mutual and hedge fund mangers.
Excluded

  • angel deals or angel deals in between venture rounds;
  • subordinate debt investments by federal/provincial governments or retail funds as ways of economic and business support with no equity components;
  • grants by federal/provincial economic development agencies or quasi-government agencies such as Sustainable Development Technology Canada (SDTC);
  • pure pharmaceutical development deals;
  • growth equity with significant minority equity positions.