Investors are showing particular interest in AI companies
The flow of funds into venture capital-backed firms has overturned its two quarter-decline during the third quarter of the year.
PwC Canada and CB Insights’ MoneyTree report revealed that more than US$858 million worth of funding was injected by investors into Canadian start-up companies in 81 separate deals. The number of deals was up by 21% while the overall deal value expanded by 110% from the previous quarter.
More so, the report showed a whopping 404% increase in quarterly funding to start-ups in the mobile space, hitting US$131 million. Canadian healthcare firms also saw improvements in funding and deal activity. Meanwhile, firms involved in the internet space reflected a 149% increase in funding even with the flat growth in the number of deals.
PwC Canada national technology sector leader Chris Dulny said with this momentum, Canada can look forward to a robust close to the year.
"We're happy to see an increase in investments in Canadian technology companies this past quarter. Canada is truly a global technology force and a place where companies can turn their vision into reality as support from investors continues to flow," Dulny said.
For the past three quarters, Canadian AI companies have received US$191 million in 22 deals. Fintech deals are also on looking solid, amassing US$200 million across 27 deals in the same period.
CB Insights CEO and co-founder Anand Sanwal said the AI and fintech sectors are responsible for the VC industry's good comeback from a lacklustre quarter.
"In addition, there was strength at the early and later stages of Q3, which buoyed funding and which is also a good sign for the Canadian venture ecosystem."
In terms of geography, Toronto saw deal activity go up, recording US$279 million investment across 32 deals. Vancouver and Montréal both saw flat funding totals relative to the previous quarter.
For more of Wealth Professional's latest industry news, click here.
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Investment industry disappoints with sluggish sales growth
As venture capital deals tumble worldwide, Canada beats the odds
PwC Canada and CB Insights’ MoneyTree report revealed that more than US$858 million worth of funding was injected by investors into Canadian start-up companies in 81 separate deals. The number of deals was up by 21% while the overall deal value expanded by 110% from the previous quarter.
More so, the report showed a whopping 404% increase in quarterly funding to start-ups in the mobile space, hitting US$131 million. Canadian healthcare firms also saw improvements in funding and deal activity. Meanwhile, firms involved in the internet space reflected a 149% increase in funding even with the flat growth in the number of deals.
PwC Canada national technology sector leader Chris Dulny said with this momentum, Canada can look forward to a robust close to the year.
"We're happy to see an increase in investments in Canadian technology companies this past quarter. Canada is truly a global technology force and a place where companies can turn their vision into reality as support from investors continues to flow," Dulny said.
For the past three quarters, Canadian AI companies have received US$191 million in 22 deals. Fintech deals are also on looking solid, amassing US$200 million across 27 deals in the same period.
CB Insights CEO and co-founder Anand Sanwal said the AI and fintech sectors are responsible for the VC industry's good comeback from a lacklustre quarter.
"In addition, there was strength at the early and later stages of Q3, which buoyed funding and which is also a good sign for the Canadian venture ecosystem."
In terms of geography, Toronto saw deal activity go up, recording US$279 million investment across 32 deals. Vancouver and Montréal both saw flat funding totals relative to the previous quarter.
For more of Wealth Professional's latest industry news, click here.
Related stories:
Investment industry disappoints with sluggish sales growth
As venture capital deals tumble worldwide, Canada beats the odds
