Disbursements so far in 2019 have been at red-hot pace says new report
The Canadian venture capital industry is on fire in 2019 with the potential to reach a new record high.
A new report shows that Canadian VC disbursements for the first three quarters of 2019 hit $5.1 billion from 452 financings, not far off the previous whole-year record according to CPE Media Analytics.
These figures reflect increases of 28% and 48% respectively in total number of financings and total amount from the same period last year.
"Canadian VC disbursements are on a historical record setting pace for the first three quarters of 2019. At the midpoint of Q4, 2019, total VC disbursements were already tracked at $6.1 billion; 2019 is posed to best the $6.5 billion record reported in 2000,” said Ted Liu, President of CPE Media Inc.
US and foreign investors are pouring funds into the Canadian VC industry but the global picture, especially the US, continues to show demand for VC investments.
Canadian companies secured funding from investors from 38 countries or overseas territories with US investors' share of the total disbursements reaching 50% for the first time, up from 42% in 2018 and 46% in 2017.
US and other foreign investors combined contributed 61% (2019), 58% (2018) and 65% (2017) of the total disbursements.
Where the money went
Ontario led all provinces with $2,055 million (41%), followed by BC ($1,337 million), Québec ($1,328 million), Alberta ($150 million) and Nova Scotia ($54 million).
City of Toronto led all municipal cities with $1,451 million (29%), followed by Vancouver ($1,068 million), Montréal ($1,057 million), Laval ($157 million) and Ottawa ($150 million).
The industries that attracted the largest share of VC disbursements were ICT and biotech; while small companies with 50 or fewer employees continued to be the largest recipients for the third consecutive year.
