US and international investors to propel 2022 to be 2nd best VC year

Canadian venture capital (VC) disbursements in Q4 2022 is poising to easily surpass $2.2 billion mark, primarily driven by investments from US and international investors.

As of 2022 year-end, $2.18 billion has been tallied for Q4 and $8.19 billion for the year 2022, according to CPE Analytics/Canadian Financings’ preliminary 2022 Canadian Venture Capital Report.

Notable Findings:

  • After reaching a high of 42% in Q3, 2022, Canadian investors’ share dropped back to 33% in Q4. Overall, Canadian investors share average 34% over 2022.
  • US investors invested $1.07 billion (49%) in Q4, 2022, compared $722 million (33%) by Canadian investors.
  • The top 10 foreign investors, including US investors, accounted for 66% of total disbursements in Q4, 2022.

News Release

US investors poised to drive Q4 2022 Canadian VC to over $2.2B amidst gloom and doom

All dollar ($) figures in Canadian dollar unless otherwise noted.

TORONTO, January 3, 2023 – Driven primarily by US and international investors, Canadian venture capital (VC) investments in Q4 2022 is posing to easily surpass $2.2 billion mark.

As of 2022 year-end, $2.18 billion has been tallied for Q4 and $8.19 billion for the year 2022, according to CPE Analytics/Canadian Financings’ preliminary 2022 Canadian Venture Capital Report.

The 2022 VC figure does not include 1passwords’ US $620 million Series C ($299 million of which was secondary exit) closed in Q4 2021 and some notable PE deals as included by other data providers.

Amidst the gloom and doom, and despite of the quarterly up-down-up trend over the year, 2022 is becoming the second-best Canadian VC year behind the record year 2021.

US and International investors played dominant roles in propelling Q4 investments, accounting for 49% and 18% of total disbursements respectively. Overall US and International investors accounted for 47% and 19% of 2022 total disbursements.

After reaching a high of 42% in Q3, 2022, Canadian investors’ share dropped back to 33% in Q4. Overall, Canadian investors share average 34% over 2022.

US investors invested $1.07 billion (49%) in Q4, 2022, compared $722 million (33%) by Canadian investors.

The top 10 foreign investors, including US investors, accounted for 66% of total disbursements in Q4, 2022.

“The preliminary VC investing data point to the continued availability of risk capital for higher-growth firms in Canada given the substantial contribution of foreign investment from both the US and international sources. The diversity of VC supply is testament to the resilience of the risk capital market in Canada and underpins a 2022 investment level that is second only to the record-breaking level of 2021,” commented Richard Rémillard, President of Rémillard Consulting Group (RCG).

Methodology
Included
• Equity and quasi-equity investments in companies directly.

Excluded
• Secondary transactions (investor/shareholder exit events) in which companies received no money
• PE transactions
• Financing by foreign headquartered/domiciled companies with Canadian subsidiaries.

Rémillard Consulting Group (RCG)
Rémillard Consulting Group (RCG) is a unique, Ottawa-based, bilingual consulting firm specializing in providing private sector, government & trade association clients with creative, research-grounded solutions to business issues and public policies involving the Canadian financial services industry. For more information: rremillard@bellnet.ca

CPE Analytics
CPE Analytics is Canada’s leading all financing intelligence provider. We provide comprehensive, verified, and unbiased information and unmatched insights and intelligence on private and public financings, initial public offerings (IPOs), M&As, professional investment firm fundraising activities. We are Canada’s only data provider that actively tracks venture capital funding sources.

CPE Analytics is the data analytics division of CPE Media & Data Company. More Info: https://cpeanalytics.ca, https://financings.ca

CPE Media & Data Company
Founded by Canada’s the most experienced private capital and financing research experts, CPE Media & Data Company is Canada’s leading all financing news and intelligence provider. More information: https://cpecompany.ca/

Contact
Ted Liu, President & CEO
CPE Media & Data Company
647-782-8818, tzliu@cpecompany.ca

Source: CPE Media Inc.