PricewaterhouseCoopers and CB Insights' Q3 2017 Canadian MoneyTree report highlights the latest trends in venture capital funding in Canada.
EIGHT-QUARTER OVERALL FINANCING TREND
Deals, dollars surge in the third quarter of 2017
- Deals and dollars invested into Canadian companies nearly matched Q4’16’s eight-quarter high.
- $858M of total funding was invested across 81 deals in Q3’17, a 21% increase in deal activity and a 110% increase in funding. The dollar figure was driven by a pair of mega-rounds of $100M or more.
DEAL SHARE BY STAGE
Seed-stage deals dip, early and expansion-stage swell
- Seed-stage deals accounted for 51% of deals in Q2’17 but declined 19 percentage points to 32% in Q3’17.
- Early-stage and expansion-stage deals increased to 27% and 21% of deal share, respectively. Expansion stage deal share climbed to an eight-quarter high.
DEAL AND FUNDING BY SECTOR
THEMATIC SPOTLIGHT: ARTIFICIAL INTELLIGENCE
AI financing activity already a record year through three quarters
- So far in 2017, Canadian AI companies have received $191M in financing across 22 deals. Both annual funding and deal totals already represent a record amount on the year.
- At the current run rate, 2017 is on pace to exceed $250M across 25+ deals.