Q3 2017 VC & PE Activity: CVCA Data Sneak Peek
The CVCA will be publishing its final Q3 2017 VC & PE Canadian Market Overviews on November 22. According to preliminary Q3 2017 CVCA data (as of October 30, 2017), Canadian venture capital activity and invested dollars are tracking higher compared to the previous two quarters, while Canadian private equity has already surpassed the total dollars invested in all of 2016.
The preliminary data shows that Canadian venture capital is likely to break the YTD dollars invested in 2016. There were 150 VC deals in Q3 2017 which totaled $980M; a five-year high for both quarterly number of deals and total dollars invested. Year-to-date, $2.6B has been invested in Canadian VC.
The largest VC deal in Q3 2017 was the $128M financing of Quebec City-based LeddarTech Incorporated by CVCA member, Fonds de solidarité FTQ. This deal was the second largest VC deal in Canada in 2017; Element AI raised $141 in Q2 by a syndicate of investors which included CVCA member, Real Ventures.
Since January, the top ten Canadian venture capital deals totaled $788M or 30 per cent of all venture capital invested.
Preliminary Canadian private equity data shows $6B was invested over 156 deals in Q3 2017. Quarter-over-quarter investment is down; however, $17.6B has already been invested since January surpassing the $12.4B invested in all of 2016. Canadian private equity investment in 2017 is likely to break the $20.6B recorded in 2015.
The largest Canadian private equity deal in Q3 2017 was the minority stake taken in Boralex by CVCA member, CDPQ worth $288M. The largest PE deal in Canada since January was the $572M funding of Vancouver-based Lundin Gold Inc. by US-based Blackstone and Orion Resource Partners in Q2.
93 of all deals since January have been buyouts totalling $1B; representing 55 per cent of total PE dollars invested so far in 2017. 120 of all deals since January were growth deals totalling $2.9B; representing 17 per cent of total PE dollars invested so far in 2017; however, also representing 27 per cent of number of deals YTD.