Amount of Venture Capital Invested in Canada Rises Slightly in 2014, but Size of Deals Shrinks: Report

Posted by Knowlton Thomas

$378 million of venture capital was invested in total in the first quarter of 2014, up 2% from the same time last year.

This is according to a report by Canada’s Venture Capital & Private Equity Association and Thomson Reuters, who found that financing rounds, totaling 122 in Q1, rose 16%. The fundraising of Canadian VC firms also increased in the first three months of the year, with $531 million committed in total, or 10% more year over year.

Analogous to the larger increase in number of deals versus the amount invested, the average deal size in Q1 was relatively small. Both Canadian investors ($1.4 million average deal size) and US investors ($3.9 million average deal size) showed a significant decrease in average deal size from 2013.

 

 

In terms of investment rounds, Series A continues to receive the lions share of venture capital investment, representing 37% of the 122 deals in Q1. Q1 2014 also saw more investment from outside Canada and the US, with an increased share of global venture capital investment into Canada.

“Venture capital is certainly on a prolonged uptick in Canada, which is great for Canadian innovation,” said Mike Woollatt, CEO of CVCA. “Canada’s venture capital has a long way to go to solve our relative undercapitalization, but these numbers are heartening.”

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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis, hiking, and exploring weird side streets. more



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