Canadian VC investment smashes all records in first half: CVCA

Venture capital investing in Canada reflected C$5.6 billion invested across 216 financings in Q2 2021, according to a report issued this week by the Canadian Venture Capital and Private Equity Association.

Venture capital investing in Canadian technology companies reflected C$5.6 billion invested across 216 financings in Q2 2021, according to a report issued this week by the Canadian Venture Capital and Private Equity Association. This brought total VC investment in the first half to C$8.3 billion going to 394 rounds, eclipsing all previous full-year amounts on CVCA records. Some 39 mega-deals (C$50 million-plus) accounted for three-quarters of all dollars invested in H1 2021.

PRESS RELEASE

CVCA’s H1 2021 Canadian Venture Capital Market Overview: CAD $5.6B Invested in Q2; Strongest First Half on Record with CAD $8.3B Invested VC investment in 2021 has already eclipsed all previous years

August 31, 2021 – Toronto, ON – Today, the Canadian Venture Capital and Private Equity Association (CVCA) released its H1 2021 report on venture capital (VC) activity in Canada. CAD $5.6B was invested across 216 deals in in Q2 2021 bringing the total VC investment to CAD $8.3B across 394 deals for the first half of 2021; eclipsing all previous full year totals on CVCA records.

There were 39 mega-deals (CAD +$50M) in H1 2021 totalling CAD $6.2B and accounting for 75% of total dollars invested in the half; a sharp increase from the four mega-deals in H1 2020. H1 2021 saw the largest funding round on record, with Toronto-Based Fintech company Wealthsimple closing CAD $750M in growth funding in May.

The average deal size in H1 2021 was CAD $21M, an all-time high. Over 59% of the 394 deals were less than CAD $5M, with most of these deals ranging between CAD $1M-5M.

There have been 30 exits since the beginning of the year with a total value of CAD $5.9B. Included in the top exits were NASDAQ’s CAD $3.5B acquisition of Verafin Inc. in February, Dialogue Health Technologies Inc.’s (TSE: CARE) CAD $779M IPO on the TSX in March, and Thinkific Labs Inc.’s (TSE: THNC) CAD $232M IPO on the TSX in April.

“We are continuing to see the results of the government’s Venture Capital Catalyst Initiative (VCCI) and the impact of Canada’s maturing technology ecosystem. The increase in larger exits has prompted an increased interest for more capital into Canadian funds and higher funding rounds into Canadian companies,” said Kim Furlong, Chief Executive Officer, CVCA. “More than half of the VC dollars in the first half of the year have gone towards later stage or growth opportunities, including in the record Wealthsimple investment. Specific growth opportunities like these have helped to make this quarter spectacular.”

The information, communications, and technology (ICT) sector received 64% of the total VC investment in the first half of 2021, with CAD $5.3B invested across 232 deals. The life sciences sector received 13% of the investment with CAD $1B across 50 deals, and cleantech received about 4%, with CAD $295M across 22 deals.

About the CVCA

Our vision

A thriving Canadian economy driven by private capital

Our Mission

CVCA’s mission is to help our members fuel the economy of the future by growing the businesses of today. We do this by supporting and connecting a vibrant private capital industry with advocacy, research, and education.

CVCA is also the nation’s ultimate resource for data on Canadian private capital investments. Please visit: http://www.cvca.ca.