YTD Q3 2019 VC & PE Activity: CVCA Data Sneak Peek
The slowing speed of PE-backed exits continued with only 23 exits YTD Q3 2019 compared to 82 in 2015. In this year’s biggest exit Industrial Scientific. paid $753M to obtain Toronto-based Intelex Technologies Inc. from HarbourVest Partners LLC and JMI Equity.
dollars invested YTD Q3 2019, a record high considering that 2013. Two thirds of this was created from 9$ 100M + offers, the largest of which included: St. John’s, Newfoundland-based Verafin Inc.’s record-breaking$515M VC Growth offer involving BDC Capital IT Venture Fund, Information Venture Partners Inc., Northleaf Capital Partners and Teralys Capital
Vancouver-based Clio raised $332M in development equity from United States financiers
In contrast to last year’s exit dry spell, there have actually been three VC-backed public listings this year including:
Montreal-based unicorn Lightspeed POS Inc.’s $1.1 B debut on TMX
Montreal-based Milestone Pharmaceutical on NASDAQ with a market cap of $468M
Markham-based Edesa Biotech went public on NASDAQ through an reverse takeover with a market cap of $49M
In addition, there have been 29 VC M&A exits amounting to $1.4 B
According to initial information(final information targeted to be released on November 21), Q3 VC investment surpassed the$2B mark! With$ 2.4 B over 126 deals, this is the most significant quarter we’ve seen in the last six years and more than 3 times that in the very same quarter of 2018. This brings the YTD overall to $4.6 B, currently 26 %higher than the
Growth offers accounted for a fifth of YTD deal circulation amounting to$2.1 B, a 35%share of overall financial investment. Buyouts made up a quarter of the 385 PE deals recording a 25% share of total financial investment ($1.4 B). There were 67 PE debt offers which caught a 16 % share of dollars invested(1B).
Canadian PE investment in Q3 continued the lagging 2019 trend with only $1.5 B invested over 94 deals bring the YTD overall to $6.1 B which is 64% lower than the exact same period in 2015(16.8 B). The $1.35 B mega buyout of London-based Autodata Solutions Inc. eclipsed the remaining activity which stayed slow in contrast to the previous two years.
$ 3.7 B purchased all of 2018. 23$ 50M + mega-deals totaled $2.7 B accounting for a 57 %share of overall
Business in the ICT sector got $2.2 B over 66 offers while business in the Industrial & & Manufacturing sector gathered $1.2 B over 95 deals.
The CVCA thanks the following companies who took part in the Q3 2019 survey:
According to preliminary data(final data targeted to information published on November 21), Q3 VC investment surpassed the$2B mark! With$ 2.4 B over 126 offers, this is the biggest quarter we’ve seen in the last six years and more than 3 times that in the same quarter of 2018. Canadian PE investment in Q3 continued the delayed 2019 trend with only $1.5 B invested over 94 offers bring the YTD overall to $6.1 B which is 64% lower than the very same duration last year(16.8 B). Growth deals accounted for a fifth of YTD deal flow amounting to$2.1 B, a 35%share of overall investment. Buyouts made up a quarter of the 385 PE deals recording a 25% share of total financial investment ($1.4 B).