Canadian VC rockets to $2.78B in Q1 2021; BC leads all provinces with $1.20B - 43% of total disbursements
- BC venture backed companies raised $1.20 billion, equaling to the total VC raised by Ontario and Quebec companies combined ($1.24 billion)
- Dapper Labs' US $304 million financing is Canada's largest VC financing all time
- BC cleantech and advanced agri-tech companies raised $277 million, representing 71% of All Canadian cleantech and advanced agri-tech disbursements
- US investors invested $1.51 billion, accounting for 54% of the total disbursements
- Investors from US, Germany, BVI, Hong Kong, and UK rounded up the top five foreign funding sources, together accounting for 67% of the total disbursements
- US Private VC, US Corporate VC, US Hedge Fund, Canadian VC and Foreign Corporate VC ranked as the top five leading investor types
- US Private VC invested $626 million; 2.5 times of the total invested by Canadian Private VC
- Dentons Canada LLP led all VC law firms with 17 VC deals
All dollar ($) figures in Canadian dollar unless otherwise noted.
TORONTO, May 25, 2021 /CNW/ - Canadian venture capital started 2021 with a blast, raising $2.78 billion from 192 financings in first quarter (Q1) of 2021, according to the Canadian Venture Capital Report released today by CPE Analytics, a division of CPE Media & Data Company.
Both the number of financings and the total amount are historically high.
Q1 2021 is all about British Columbia from an investment destination perspective and about US investment from an investment source point of view.
Q1 2021 British Columbia Venture Capital Disbursements
BC led all Canadian provinces in venture capital disbursements in Q1 2021, raising $1.20 billion from 57 financings.
Vancouver's Dapper Labs led all financings with the blockbuster US $304.4 million financing. Dapper Labs financing is the largest Canadian venture capital deal all time (for clarification - Verafin's $515 million financing in 2019 is a combination of PE recap/VC secondary and senior debt financing).
BC ICT, Biotech and Life Sciences companies raised $453 million and $424 million, representing 33% and 60% of the Canadian total disbursements.
It is important to note that cleantech investment alone in Q1 stood at just under 10% of the total, BC cleantech, advanced agri-tech/agri-food companies have been quietly leading all Canadian companies, raised $277 million or 78% of the total disbursements by all Canadian cleantech and agri-tech companies in Q1 2021.
Q1 2021 US Investments in Canadian Venture-backed Companies
Investors from 33 countries or regions invested in Canadian companies in Q1, 2021. US investors led with $1,510 million, contributing 54% of total amount raised by Canadian companies.
US Private VC, US Corporate VC and US Hedge Fund invested $626 million, $283 million and $276 million respectively, together accounting for 43% of the total disbursements.
US investors play a dominant role in Ontario, Quebec, BC and Atlantic Canada in Q1 2021, accounting for 61%, 56%, 55% and 50% of total provincial disbursements respectively. Prairie is the only region raised less than 50% of total capital from US investors.
"The Q1 2021 data reveal the astonishing dominance of US and foreign funds in the Canadian venture capital market place. On the one hand, this feature is testament to the vibrancy of the technology sector in Canada that is evident in both private and public capital markets. On the other hand, this data is likely to reinforce the concerns of those who have expressed fears that Canada may be continuing to export its future business champions as the leading market share of US funds at the growth stage seems to now encompass multiple stages of venture investing. As well, the robust investing volume in Q 1 masks ongoing weakness in the cleantech sector - which may be a priority for public authorities but is clearly not one for the private sector venture industry as a whole in Canada," Commented Richard Rémillard, President of Rémillard Consulting Group (RCG).
Q1 2021 Canadian Venture Capital Disbursement Highlights
- Companies from 40 Canadian cities secured venture capital funding. Vancouver was the only $1 billion plus city, securing $1,058 million.
- Top 11 cities with $30 million or more VC funding, Vancouver, Toronto, Montreal, Quebec City, Calgary, Burnaby, Halifax, Winnipeg, Kitchener, Surrey, and Victoria, collectively raised $2,629 million or 94% of the total disbursements.
- ICT companies raised $1,393 million or 50% of total amount; Biotech companies received $711 million or 26% of total amount; Cleantech companies raised $255 million or 9% of the total amount.
- Series A, B, C financings raised $484 million, $295 million and $399 million respectively.
- Companies with less than 50 employees raised $1,614 million or 58% of the total disbursements.
Q1 2020 Canadian VC Funding Source Highlights
- US investors invested $1,510 million (54%), Canadian investors contributed $764 million (28%), and investors from 32 other countries/regions contributed $509 million (18%).
- Top 10 funding foreign countries/regions: US, Germany, BVI, Hong Kong, UK, Singapore, Chile, Australia, Netherlands, Japan.
- Top 10 Individual investor types: US Private VC, US Corporate VC, US Hedge Fund, Canadia Private VC, Foreign Corporate VC, Canadian Angel Investor, US Angel Investor, Foreign Family Office, Canadian Government, Foreign Private VC.
Q1 2021 US and Foreign Investment Regional Breakdowns
- All regions with exception of The Prairies raised over half of the capital from US and foreign investors.
- The Prairies raised 42% of the total capital from US and foreign investors.
- BC attracted the highest share of US and foreign investments with 80% of total raised.
Q1 2021 Fundraising by Canadian VC Firms
- 18 VC funds raised $1,152 million.
Q1 2021 Top VC Law Firms
- Top five active VC law firms: Dentons Canada LLP, Fasken Martineau DuMoulin LLP, Osler, Hoskin & Harcourt LLP, LaBarge Weinstein LLP, Torys LLP.
Full summary report can be downloaded from financings.ca website: https://www.financings.ca/reports/
Rémillard Consulting Group (RCG)
Rémillard Consulting Group (RCG) is a uniqe, Ottawa-based, bilingual consulting firm specializing in providing private sector, government & trade association clients with creative, research-grounded solutions to business issues and public policies involving the Canadian financial services industry. For more information: [email protected]
https://remillardconsulting.com/
CPE Analytics
CPE Analytics is Canada's leading all financing intelligence provider. We provide comprehensive and unbiased information and unmatched insights and intelligence on public financings, private financings, initial public offerings (IPOs), M&As, professional investment firm fundraising activities.
CPE Analytics is the data analytics division of CPE Media & Data Company. More Info: https://cpeanalytics.ca, https://financings.ca
CPE Media & Data Company
Founded by Canada's most experienced private capital and financing research experts, CPE Media & Data Company is Canada's leading all financing news and intelligence provider. More information: https://cpecompany.ca/
SOURCE CPE Media Inc.
Ted Liu, President & CEO, CPE Media & Data Company, 647-782-8818, [email protected]
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