CVCA Intelligence

2018 Year‑In‑Review VC & PE Activity: CVCA Data Sneak Peek

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Canadian Venture Capital

According to preliminary data (final data is targeted to be published on March 11), Canadian venture capital investment crossed the $1B mark in the fourth quarter of 2018 with $1.1B invested in 164 deals bringing the year-end total to $3.6B over 609 deals. The 2018 total is just 6% shy of the $3.8B invested last year.

$50M+ mega-deals accounted for 30% of total VC investments, down from its 39% share in 2017. Excluding mega-deals, the average deal size in 2018 was $4.2M, a 6% increase from the $4M last year. The 14 $50M+ mega-deals totaled $1.1B and included:

Canadian Private Equity

Canadian PE investment recovered from its third quarter slump and tripled to over $6B in Q4, bringing the year-end total to $22.4B over 544 deals. Although 15% lower than the $26.4B in 2017, it represents a 62% increase from the 2016 low when only $13.8B was invested. The largest deals this year included:

It’s worth noting that combined value of $1B+ mega deals was $14.4B and exceeded the sum of all other deals combined, a phenomenon that has not occurred since 2014 driven by the blockbuster $11.8B acquisition of Tim Hortons.

The number and share of deals between $100M and $500M, typically a sweet spot for Canadian PE deal flow, dropped to 19 and 17% respectively. That is down from 28 and 22% in 2017.

The CVCA thanks the following firms who participated in the Q42018 survey: