U.S. and Foreign Investors Lead in Funding $ 7.54 Billion Venture Capital in First Half

  • Ontario has taken the lead, secure $ 3.32 billion of total venture capital disbursements, before $ 2.41 billion received by businesses in British Columbia
  • Toronto and Vancouver raised $ 2.66 billion and $ 2.21 billion respectively, together representing 65% of total RC disbursements.
  • Growth and late-stage financing dominated for the first time in history, increasing $ 3.31 billion, before $ 3.21 billion raised by start-ups.
  • ICT companies have raised $ 4.75 billion represent 63% of total GC disbursements.
  • American investors have invested $ 4.37 billion, representing 58% of total disbursements
  • Investors from 40 other foreign countries / regions invested $ 1.11 billion (15%)
  • US Private VC, US Corporate VC, US Hedge Fund, US Corporate, Canadian VC, Canadian Institutional VC and Foreign Corporate VC ranked among top investors
  • Dentons Canada LLP has led all venture capital law firms with 28 venture capital transactions

All dollars ($) are in Canadian dollars, unless otherwise indicated.

TORONTO, 23 Aug 2021 / CNW / – Canadian venture capital (VC) in the second quarter of 2021 set a new quarterly record, with $ 4.59 billion from 166 financings, according to the Canadian Venture Capital Report released today by CPE Analytics, a division of CPE Media & Data Company.

For the first half of 2021 (H1 2021), the Canadian CR declared $ 7.54 billion from 374 financings. The amount of VC disbursements in the first semester has already exceeded that of the previous best year of Canadian VC in 2019 ($ 7.46 billion).

Ontario regained the lead it lost to British Columbia in the first quarter of 2021, increasing $ 3.32 billion before $ 2.41 billion raised by BC companies.

Growth and late stage funding dominated the first half of the year and, for the first time in Canadian history, led to total fundraising with $ 3.31 billion. In comparison, start-ups have raised $ 3.21 billion and secure seed / pre-seed companies $ 345 million.

ICT companies have largely dominated all sectors, ensuring $ 4.75 billion, almost 4 times the amount raised by life science companies ($ 1.20 billion).

After a brief setback in 2020, U.S. investors resumed their dominant roles by supporting Canadian companies, investing $ 4.37 billion and representing 58% of total RC funding.

American VC invested $ 2.11 billion representing 28% of the total source of funding. Non-traditional venture capitalists such as hedge funds and mutual funds increase their pace of investing, investing $ 1.05 billion or 14% of total funding. U.S. hedge funds and mutual funds alone have supported Canadian companies with $ 876 million (12%).

“This revealing data lays bare the dominant role played by foreign sources, particularly the United States, of venture capital in the Canadian market. Given the current global competition between states for technological leadership and the ongoing federal election, it is imperative that this issue be addressed by the major federal parties in case Canada finds itself without an autonomous technological sector in critical areas ranging from clean technologies to finance, ”commented Richard Rémillard, President of Rémillard Consulting Group (RCG). . These data reveal the attractiveness of finance-related investments for venture capital, as they are dwarf investments in clean technology – an alleged public and government priority. And, despite all the attention COVID has given to the biological and life sciences, software continues to devour the world (as senior US VC Marc Andreessen put it). “

Highlights of venture capital disbursements in Canada in the first half of 2021

  • Companies in 55 cities have secured venture capital funding. Top 10 cities with $ 50 million or more VC financing, Toronto, Vancouver, Montreal, Kitchener, Quebec city, Calgary, Saskatoon, Fredericton, Burnaby, Halifax, raised collectively $ 7.1 billion or 94% of total disbursements.
  • Atlantic Canada collectively raised $ 203 million or 3% of the total.
  • Series A, B, C, D financing raised $ 1.00 billion, $ 1.16 billion, $ 1.46 billion, and $ 1.47 billion respectively.
  • Companies with less than 50 employees lifted $ 3.77 billion or 50% of total disbursements.

Highlights of Canadian VC funding sources in the first half of 2021

  • Canadian investors have contributed $ 2.06 billion (27%) and investors from United States and 40 other countries / regions combined contributed $ 5.48 billion million (73%).
  • Top 10 foreign countries / regions that fund: United States (United States), UK (UK), Japan, Germany, British Virgin Islands (BVI), Hong Kong, Spain, Singapore, Australia, France.
  • The 10 main types of individual investors: US Private VC, US Mutual / Hedge Fund, US Corporate, CDN Private VC, CDN Institutional VC Fund, Foreign Corporate, US Angel, CDN Government, Foreign Private VC, CDN Angel.

Regional breakdown of American and foreign investments in the first half of 2021

  • All regions except the Prairies have raised more than half of the capital from US and foreign investors.
  • The Prairies raised 49% of the total capital from US and foreign investors.
  • British Columbia attracted the largest share of US and foreign investment with 83% of the total raised.
  • Quebec attracted a significant share of investment from US and foreign investors (65%) in the first half of the year compared to all previous years.

Fundraising in the first half of 2021 by Canadian venture capital firms

  • 38 VC funds raised $ 2,912 million.

H1 2021 Best Venture Capital Law Firms

  • The top five active venture capital law firms: Dentons Canada LLP, Fasken Martineau DuMoulin LLP, Osler, Hoskin & Harcourt LLP, LaBarge Weinstein LLP, Torys LLP.

The full summary report can be downloaded from financements.ca website: https://www.finances.ca/reports/

Methodology

Included

  • Equity and quasi-equity investments received by companies

Excluded

  • Mortgage financing and senior debt as part of a global roundtable (more than 90% of $ 289 million the financing round is mortgage financing, which should NEVER be counted as CV. In addition, Fraction’s financing was closed in Q4 2020 and not in Q1 2021 as recorded by some date providers).
  • Secondary transactions in which companies did not receive money

Rémillard Consulting Group (RCG)

Groupe Conseil Rémillard (RCG) is a unique company, OttawaBilingual consulting firm specializing in providing private sector, government and trade association clients with creative and research-based solutions to business and public policy issues involving the Canadian financial services industry. For more information: [email protected]

Analytical CPE

CPE Analytics is from Canada leader of all financial intelligence providers. We provide comprehensive, verified and unbiased information, as well as unparalleled insight and intelligence on public finance, private finance, initial public offerings (IPOs), mergers and acquisitions, corporate fundraising activities. professional investment.

CPE Analytics is the data analysis division of CPE Media & Data Company. More information: https://cpeanalytics.ca, https://financings.ca

CPE media and data company

Founded by from Canada most experienced private equity and financing experts, CPE Media & Data Company is from Canada leading provider of fundraising information and intelligence. More information: https://cpecompany.ca/

SOURCE CPE Media inc.

For further information: Ted Liu, President and CEO, CPE Media & Data Company, 647-782-8818, [email protected]

Related links

https://privatecapitalnewswire.com/

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