Venture investing YTD 2021 sets new record in Canada: CVCA

Venture capital investing in Canadian technology companies reflected C$3.5 billion invested across 174 financings in Q3 2021, according to a report issued this week by the Canadian Venture Capital and Private Equity Association. This activity brought the year-to-date total to C$11.8 billion invested in 568 rounds. CVCA said Canadian VC investment as of the end of September, bolstered by exceptionally large financing sizes, already exceeds all full-year totals of the past.

PRESS RELEASE

CVCA Q3 2021 YTD Venture Capital Canadian Market Overview: CAD $11.8B Invested YTD; Surpassing Highest Annual Invested Dollars on CVCA Records

TORONTO – November 16, 2021 – The Canadian Venture Capital and Private Equity Association (CVCA) today released its quarterly report focused on Canadian venture capital (VC). CAD $3.5B was invested across 174 deals in the third quarter, bringing the year-to-date total to CAD $11.8B; propelling 2021 beyond the previous highest annual VC investment of CAD $6.2B recorded in 2019.

With larger investment rounds taking place since the beginning of the year, the average deal size sits at a record-setting CAD $20.7M, which has roughly doubled since the CAD $11M in 2019, the previous highest year on record. The average growth stage investment YTD in Q3 2021 was CAD $129M, which has more than tripled over the last three years. Investments into later and growth stage companies have received 63% of total VC dollars invested in Q3 2021, a significant increase from years prior (50% in 2019 and 49% in 2020).

There were 55 megadeals (CAD $50M+) year-to-date, accounting for 74% of total dollars invested in the year so far. Notable megadeals in Q3 included Vancouver-based Dapper Labs’ CAD $319M closing, Toronto-based Clearco’s CAD $270M funding, and the investment made in Montréal-based Blockstream for CAD $265M.

“Investment in Canada’s startups has never been stronger,” said Kim Furlong, Chief Executive Officer, CVCA. “With the recent crop up of new continuation funds and the average growth stage investment rising, we are seeing a willingness to hold with investors as they stay the course in their investments—a testament to the maturing Canadian venture ecosystem.”

Merger and acquisition (M&A) activity continues the momentum from earlier this year, with 15 additional M&A exits, for a total of 34 M&A exits completed year-to-date Notable M&A exits include the acquisition of BC-based Redlen Technologies by Canon in September.
There were 2 additional VC-Backed IPOs in Q3, bringing the total number of VC-backed IPOs so far in 2021 to 4. In Q3, Burlington-based Anaergia Inc. and Toronto-based LifeSpeak Inc., both listed on the TSX.

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.