Tech Startup Funding in Canada is May Finally be on the Upsurge

Posted by Techvibes NewsDesk

We're all aware that Canada regularly bleeds startups and entrepreneurs, who flock south to seek superior funding opportunities south of the border in hotspots like Silicon Valley and New York.

But a new upsurge in funding on our side of the fence may finally be turning the tides.

“There seems to be an announcement a week about another fund being raised,” Jennifer Evans, chair of the Information Technology Association of Canada and founder of digital strategy agency Sequentia Environics, told the Financial Post. “So it certainly looks like the landscape in this country is changing.”

And a recent study reinforces this change, revealing that both the quantity and amount of angel investments are on the rise across the country.

Further, after a weak year of venture capital fund-raising in 2011—where VC firms raised $1 billion, a paltry 2% increase over 2010—Canada’s Venture Capital & Private Equity Association reported in May that new capital committed to domestic funds totalled $742 million in the first quarter of this year. That's more than double the amount from the same quarter last year.

The numerous new VC funds popping up in 2012 are cross-country and from a wide array of firms, including Omers Ventures, Rho Canada, iNovia Capital, and more.

We'll never equal the US: with 10 times our population, there's always going to be more angels and venture capitalists in America. But tech startups generally don't need nearly as much money as they used to, so quantity is becoming less crucial. Canada still has a long way to go to break out of its conservative shell, but there's less and less reasons these days for Canadian entrepreneurs to flee south.

Company:
Canada's Venture Capital & Private Equity Association
Website:
http://www.cvca.ca
Location:
Toronto, Ontario, Canada

The CVCA – Canada’s Venture Capital & Private Equity Association – represents the majority of private equity companies in Canada, with over 1500 members. CVCA members have over $65 billion in capital under management, in three distinct market segments: ♦ Buyout is characterized chiefly by risk investment in established private or publicly listed firms that are undergoing a fundamental change in operations or... more

Company:
OMERS Ventures
Website:
http://www.omersventures.com
Location:
Toronto, Ontario, Canada

We're OMERS Ventures and we are as passionate about your success as you are about your company. We are looking for like-minded partners who have a shared vision of building a vibrant and successful Canadian knowledge economy. OMERS Ventures is the venture capital arm of OMERS, one of Canada's largest pension funds with over $53 billion in net assets. more


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Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property. Originally founded in 2002, Techvibes is dedicated to covering social, mobile, and startup news that impacts Canadians. Our editors and nationwide network of reporters combine breaking hyperlocal news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and... more



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