PricewaterhouseCoopers and CB Insights' Q1 2017 Canadian MoneyTree report highlights the latest trends in venture capital funding in Canada.
ACTIVITY DECLINES BUT DOLLARS UP FROM A YEAR BEFORE
Canadian venture-capital backed companies saw $460M in total financing across 64 deals in Q1’17. Year over year, deals were down 19% from Q1’16, while dollars were up 10%. The quarterly deal figure was the lowest seen since the 54 deals in Q3’15. On a quarterly basis, deals were down 25% and dollars down 41% from Q4’16.
CORPORATE PARTICIPATION STRONG
Amid the overall slackening of activity, corporates and corporate VCs were a bright spot of activity, with 23% of all deals to Canadian companies featuring at least one corporation or corporate venture capital arm participating. The participation rate matched Q2’15 for an eight-quarter high.
MONTREAL DEFIES TREND AS ACTIVITY RISES; TORONTO SHOWS STRENGTH
Toronto, Montreal and Vancouver ranked as the top metros of Q1’17 by deals. All saw dollars invested decline compared to Q4’16, although Montreal saw deal activity rise. Year over year, Toronto activity was up and dollars were up over 200%.