US investors leading Canadian venture capital investors in Q1 2019

TORONTO, May 1, 2019 (CPE Media News) – 117 venture capital (VC) financings were completed in the first quarter (Q1) of 2019, raising $ 1.28 billion, according to the Canadian Venture Capital Report released today by CPE Media Analytics, the data analytic division of CPE Media Inc.

Large deals played an important role in Q1 2019.  13 deals with the size of $20 million or more secured $773.3 million in aggregate, accounting for 61 % of the total disbursements.

Where did the VC money go?

  • Ontario led all provinces, receiving $803.2 million or 63% of the total disbursements. Quebec received $171.1 million (13%) while British Columbia raised $169.0 million (13%), Alberta $63.1 million (5%) and New Brunswick $24.5 million (2%).
  • City of Toronto led all cities with $446 million (35%). Top five cities included Montreal ($143.1 million or 11%), Hamilton ($140.8 million or 11%), Vancouver ($88.3 million or 7%), and Ottawa ($81.4 million or 6%).
  • Early stage deals, including pre-seed and seed financings, attracted $749.8 million (59%)
  • Series A + B deals attracted $591 million (46%), distorted by unclassified Series deals which accounted for $459.7 million (36%).
  • ICT and biotech sectors received $697.6 million (55%) and $333.7 (48%) million respectively.

Sources of VC funding – where did the VC money come from?

  • Canadian investors from eight provinces, Ontario, Quebec, BC, Alberta, Nova Scotia, Saskatchewan, New Brunswick, and Manitoba, invested $499.5 million, accounting for 39% of the total disbursements. Ontario investors led all Canadian investors, investing $238.8 million (19%).
  • Investors from twenty-one foreign countries invested in Canadian vc-backed companies. US investors led with $673.7 million for a dominating share of 53% of the total disbursements. China, Ireland, Sweden, United Kingdom (UK) rounded up the top five countries. India would be placed in the top five if the undisclosed investment by Times Bridge’s in Wattpad were factored in.
  • Private venture capital funds led all investor types with $604.9 million (47%), followed by Corporate with $256.7 million (20%), Government $104.4 million (8%), Angel $97.8 million (8%), and Family Offices $89.9 (7%).
  • Further drilling down, US VC, alone led with $450.2 million for 35% of total disbursements. Canadian Private VC ($136.1 million or 11%), US Corporate ($108.7 million or 9%), Canadian Government ($104.4 million or 8%), and Foreign Corporate ($81.4 million or 6%) rounded up the top five individual investor categories.

Other results or observations

  • In Q1, 2019, 20 venture capital funds raised $1,797 million in aggregate, including $1,090 million by 15 Private VC funds, $705 million by two Institutional VC funds, and $2 million by 3 Single Purpose Vehicles (SPVs).
  • Lightspeed POS Inc., an investee company of Caisse de dépôt et placement du Québec (CDPQ) and Investissement Québec (IQ), completed initial public offering on the Toronto Stock Exchange (TSX).
  • Fasken Martineau DuMoulin LLP led with 13 financings and followed by LaBarge Weinstein LLP with 8 financings.

“CPE Media Analytics is proud to be the only data provider that accurately tracks and provides comprehensive analysis on the sources of VC funding, which is one of the most important and fundamental metrics of the venture capital industry.   US investors accounted for 53% of total VC disbursements in Q1 2019 and will likely continue to be the leading backers funding Canadian venture-backed companies.  Our report offers unique insight and an indispensable tool to policy makers and all stakeholders who want to track and analyze the industry in confidence. As foreign investments become ever so important to the Canadian venture capital ecosystem, we will be releasing detailed analysis on the foreign investments in Q2,” commented Ted Liu, President of CPE Media Inc.

The full report can be downloaded from financings.ca website:  https://www.financings.ca/reports/

 

Financings.ca by CPE Media Analytics

CPE Media Analytics, a division of CPE Media Inc., through financings.ca, offers comprehensive data coverage and analysis on venture capital and private equity. Investments by investor type, by source of funding, and fundraising are the most important indicators of Canadian venture capital industry, and we are Canada’s only data provider that specifically tracks and provides these metrics. More information:  https://financings.ca

About CPE Media Inc.

CPE Media Inc. is Canada’s only all financing, private capital and public market, news and intelligence provider. We provide trusted, unbiased and verified, private and public market news and intelligence to all industry stakeholders. For more information: https://cpemedia.ca.

CPE Media News

Private Capital Journal, a service of CPE Media News, provides Canada's complete private capital (angel, venture capital, private equity, private/exempt), public financing, M&A, IPO/RTO news and intelligence.