Preqin’s Venture Deals Analyst shows that since 2008, 827 financings have taken place in Canada with an aggregate value of $5.9bn. Canadian venture capital deals contribute to 3% and 2% of the number and aggregate value of venture capital investments globally across the six year period.
Between 2008 and 2009 there was a drop in venture capital activity in Canada in terms of both deal flow and aggregate deal value. The annual number of deals dropped from 101 to 90, and aggregate deal value decreased by 40% from $851mn to $511mn. A recovery in terms of the number occurred from 2009 to 2011; in 2011 there were 155 deals valued at an aggregate $1.6bn, a record in terms of total venture capital financings in Canada since 2008. The CAD 230mn growth capital financing of Xplornet Communications Inc. in May 2011 contributed to this high value, and is the largest venture capital deal recorded in Canada since 2008. Deal value dropped significantly by 31% from 2011 to 2012 from $1.6bn to $1.1bn, although the number of deals increased over the same time period by 34% from 155 to 208, the largest annual number of venture capital financings in Canada since 2008.
Looking at venture capital activity across Canada in 2013 so far, there have been 158 deals valued at an aggregate $987mn. Compared to this time last year, deal flow and aggregate deal value are 19% and 3% lower respectively. From Q1 to Q3 2013, the quarterly aggregate deal value has risen from $249mn to $305mn, and so far this quarter the aggregate value is $136mn. The largest venture capital deal that has taken place so far in Canada this year was the $165mn series B funding of the HootSuite Media, Inc. in August made by Accel Partners, Insight Venture Partners and OMERS Ventures. HootSuite Media, Inc. is based in Vancouver and operates a social media management application.