PricewaterhouseCoopers and CB Insights' Q2 2017 Canadian MoneyTree report highlights the latest trends in venture capital funding in Canada.
DEAL SHARE BY STAGE
Seed deal share rises; expansion-stage activity hits eight-quarter high
- After two quarters of seed activity representing under 40% of quarterly deal totals, Q2’17 saw seed deal share jump back to 45%.
- On the other hand, expansion-stage share accounted for nearly a fifth of Q2’17 deals, representing an eight-quarter high.
INTERNET EIGHT-QUARTER FINANCING TREND
Internet quarterly deals rise 19%, as funding slips below $100M
- Quarterly deal activity was up 19% from Q1’17, standing at 31 for the quarter.
- Quarterly funding tally of $96M was down 56% from Q1’17, snapping two consecutive quarterly increases and dropping below Q3’16 for an eight-quarter low.
TOP FIVE MARKETS OF Q2’17 BY DEALS
INVESTOR LOCATIONS (TTM Q3’16-Q2’17)
Canadian investors account for majority from seed to expansion stage
- Canada-based investors represented at least 50% of all active investors in Canadian companies across seed, early and expansion stages, with later-stage deals being the lone exception.
- US participation was strong across stages, with an especially active presence in larger, later-stage deals, where USbased firms accounted for 58% of all investors.