Q3 2019 YTD VC & PE Canadian Market Overviews: Venture Capital Surpasses CAD $2B Mark; Canadian Private Equity Investment Continues Downward Trend
financial investment efficiency up until now in 2019. There were 12 mega-deals in Q3, bringing the YTD overall to 23, representing majority of all dollars invested. Of the 23 mega-deals, 9 deals surpassed CAD$100M and three gone beyond CAD$200M which consisted of: John’s, Newfoundland-based Verafin Inc.’s CAD$515M growth funding with participation from BDC Co-Investments, Information Venture Partners
, Northleaf Capital Partners and Teralys Capital ; Vancouver-based Clio’s$332M series D round from United States investors; and Montreal-based Element AI’s $200M series B round from a syndicated that included Caisse de dépôt et positioning du Québec(CDPQ), BDC CapitalCo-Investments and Real Ventures.”In the previous nine months, Canadian endeavor capital investment has actually gone beyond all
previous milestones,”said Kim Furlong,
Chief Executive Officer, Canadian Venture Capital and Private Equity Association.”The concentrate on growing Canadian companies has actually never been more obvious than what we are presently seeing in the market.”Far this year, the leading 3 sectors getting VC dollars information and interactions technology(ICT)taking 66%of total VC dollars invested(CAD $3.1 B over 223 deals), followed by life sciences receiving a 19%share(CAD$886M over 77 deals)and cleantech companies taking a 6%portion( CAD$262M over 23 offers). VC-backed exits are tracking towards exceeding 2018’s performance(35 exits amounting to CAD$978M). Far in 2019, there have actually been 32 completed exits totalling CAD$3B which included two VC-backed Montreal-based business: Lightspeed POS Inc.(TSE: LSPD)finished the largest IPO exit considering that 2017, noting with a market cap of$1.1 B; and Turning Point Pharmaceuticals Inc.(NASDAQ: MIST)closed its IPO with a market cap of$468M. DOWNLOAD THE Q3 2019 YTD CANADIAN VENTURE CAPITAL MARKET OVERVIEW REPORT HERE CANADIAN PRIVATE EQUITY Canadian Private Equity Investment Continues Downward Trend Public market volatility pressing business
quantity because 2013 and practically 80%higher than the CAD$1.3 B in the second quarter of 2019. A record-breaking increase in mega-deals ($50M+) drove the
The $1.4 B mega-buyout by Thomas Bravo LLC of independently held London-based Autodata Solutions Inc.;
The $653M recapitalization of Montérégie-based McInnis Cement Inc. by Caisse de dépôt et placement du Québec (CDPQ); and
The $445M acquisition of Toronto-based Gluskin Sheff + Associates Inc. by ONEX Corporation.
“While the middle market stays traditionally strong for Canadian PE, the assessment environment continues to be evident in efficiency numbers,” said Kim Furlong, Chief Executive Officer, Canadian Venture Capital and Private Equity Association. “We are, however, seeing an underwhelming public market environment and a boost of companies being taken personal (such as WestJet and HBC). These conditions are supplying chances for public business to refocus on company imperatives.”
A record proportion of offer circulation (25%) entered into companies in the industrial and making sector– three percent greater than 2017 and five percent higher than last year. The information and communications technology (ICT) sector kept its rate with a 17% share.
B driven by record-breaking variety of mega-deals A stunning CAD$2.4 B was bought Q3– the highest
The $753M corporate acquisition of Toronto-based Intelex Technologies Inc. from HarbourVest Partners, LLC and JMI Equity; and
The $260M acquisition of Langley-based 4Refuel Canada LP by Finning International Inc.
private CAD $1.8 B was invested over 94 handle the third quarter of 2019. The bulk of PE activity at 66% remains in the mid market, with deals of CAD $25M and under. There has been one single CAD $1.4 B mega-deal (CAD $1B+) up until now in 2019 and one deal at CAD $653M with the remainder of PE deals (with revealed values) below CAD $500M. The largest divulged personal equity deals consisted of:
CANADIAN VENTURE CAPITAL CORRECTION NOTICE: CVCA’s Q3 2019 YTD VC Canadian Market Overview was published on November 21, 2019. The CVCA has remedied an error in which BDC IT Ventures was associated to Verafin Inc.’s CAD$515 development funding round. The involvement was really from BDC Co-Investments. CVCA apologies for this error and links to the report are have been changed. Q3 Venture CapitalSurpasses CAD$2B Mark; Largest Quarter On Record 2019 YTD VC investment reaches CAD$4.7
The pace of PE exits likewise slowed with only 23 exits (all M&A) which amounted to CAD $1.1 B. By contrast, there were 87 exits amounting to CAD $12.2 B in 2018. Consisted of in the 23 exits up until now this year:
The CVCA has actually corrected a mistake in which BDC IT Ventures was attributed to Verafin Inc.’s CAD$515 growth funding round. Far this year, the top three sectors getting VC dollars details and communications technology(ICT)taking 66%of total VC dollars invested(CAD $3.1 B over 223 deals), followed by life sciences receiving a 19%share(CAD$886M over 77 deals)and cleantech companies taking a 6%part( CAD$262M over 23 deals). VC-backed exits are tracking towards exceeding 2018Going beyond performance(Efficiency exits totalling CADAmounting to978M). There has been one single CAD $1.4 B mega-deal (CAD $1B+) so far in 2019 and one deal at CAD $653M with the rest of PE deals (with disclosed worths) below CAD $500M. The pace of PE exits also slowed with just 23 exits (all M&A) which amounted to CAD $1.1 B. By comparison, there were 87 exits amounting to CAD $12.2 B in 2018.