VC & PE QUÉBEC MARKET OVERVIEW // H1 2017 · PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU...

VC & PE QUÉBEC MARKET OVERVIEW

// H1 2017NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA

TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.

VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2017 | 2

CONTENTS

PARTICIPATING DATA CONTRIBUTORS ............................................................................... 3

FOREWORD ...................................................................................................................................... 4 VC & PE ACTIVITY .................................................................................................................................................................... 5 VC & PE ACTIVITY BY ADMINISTRATIVE CENTRE .......................................................................................... 6

VENTURE CAPITAL QUÉBEC MARKET OVERVIEW ......................................................... 7 QUÉBEC VENTURE CAPITAL HIGHLIGHTS ......................................................................................................... 8

VENTURE CAPITAL HEAT MAP ..................................................................................................................................... 9 QUARTER-OVER-QUARTER VC INVESTMENT IN QUÉBEC ................................................................. 10 VC ACTIVITY BY DEAL SIZE ............................................................................................................................................ 11 VC SECTOR BREAKDOWN ...............................................................................................................................................12 VC STAGE BREAKDOWN ................................................................................................................................................. 13 TOP 10 DISCLOSED QUÉBEC VC DEALS ............................................................................................................. 14 TOP DISCLOSED VC EXITS .............................................................................................................................................. 15MOST ACTIVE FIRMS IN QUÉBEC ............................................................................................................................. 16

PRIVATE EQUITY QUÉBEC MARKET OVERVIEW ........................................................... 17 QUÉBEC PRIVATE EQUITY HIGHLIGHTS ............................................................................................................. 18

PRIVATE EQUITY HEAT MAP ......................................................................................................................................... 19 QUARTER-OVER-QUARTER INVESTMENT ACTIVITY IN QUÉBEC ................................................ 20 PE ACTIVITY BY DEAL SIZE ............................................................................................................................................ 21 PE SECTOR BREAKDOWN .............................................................................................................................................. 22 TOP DISCLOSED QUÉBEC PE DEALS ..................................................................................................................... 23 TOP PE EXITS IN QUÉBEC ............................................................................................................................................... 24MOST ACTIVE PE INVESTORS IN QUÉBEC ........................................................................................................ 25

CVCA METHODOLOGY ............................................................................................................. 26 VENTURE CAPITAL .............................................................................................................................................................. 26 PRIVATE EQUITY ............................................................................................................................................................. 27, 28

CVCA/RÉSEAU CAPITAL ABOUT & CONTACT .............................................................. 29


CVCA thanks the following firms who participated in itsQ2 2017 survey.

PARTICIPATING DATA CONTRIBUTORS

500 Startups Canada Mars Innovation

Amorchem Venture Fund McRock Capital

Arctern Ventures New Brunswick Innovation Foundation

AVAC Ltd. Northhumberland CFDC

Avrio Ventures Management Corp OMERS Ventures

Azure Capital Partners Pangaea Ventures

Brightspark Ventures Pelorus Venture Capital Ltd.

Build Ventures Plaza Ventures

Chrysalix Venture Capital Quark Venture

CTI Life Sciences Real Ventures

Cycle Capital Management Relay Ventures

Difference Capital Roadmap Capital

Espresso Capital ScaleUP Ventures

Eventi Capital Partners Summerhill Ventures Partners

Evok Innovations Tactex Asset Management Inc.

Ferst Capital Tandem Expansion

Fight Against Cancer Innovation Trust TandemLaunch

Freycinet Ventures Top Renergy

Georgian Partners Trellis Capital

Green Century Investment TVM Life Science Management Inc.

GreenSoil Investments Vancouver Founders Fund

iGan Partners Vanedge Capital Partners

Impression Ventures VentureLink Funds

Information Venture Partners Versant Ventures

Innovacorp Wellington Financial

iNovia Capital White Star Capital

Investeco Capital Corp Whitecap Venture Partners

MaRS Catalyst Fund Yaletown

MaRS IAF

PARTICIPATING VENTURE CAPITAL FIRMS

32 Degrees Capital Parallel 49 Equity

AIP Private Capital Pender West Capital Partners

Altas Partners LP Persistence Capital Partners

Arc Financial PFM Capital Inc

ATB Capital Pillarfour Capital

Birch Hill Equity Partners PRIVEQ Capital Funds

Brookfield Asset Management Regimen Equity Partners

Carpedia Capital Roynat Capital Inc.

Clairvest Group Inc. Seacliff Group

First West Capital Seafort Capital

Fulcrum Capital Partners Searchlight Capital Partners

GrowthWorks Atlantic Venture Fund Ltd. Stratgem Innovative Capital Partners

Growthworks Working Opportunity Fund (EVCC) Ltd. Swander Pace Capital

Hawthorne Capital Inc. Tera Capital Corporation

Highland West Capital TorQuest Partners

InstarAGF Asset Management Tricor Pacific Founders Capital

Ironbridge Equity Partners TriWest Capital

Lex Capital Management VERTU Capital

m2s Capital Vistara Capital Partners

Mink Capital Waterton Global Resource Management Inc.

Mosaic Capital Corporation Westcap Mgt. Ltd

Novacap Management Inc. XPND Capital

OMERS Private Equity Inc.

PARTICIPATING PRIVATE EQUITY FIRMS

Alberta Teachers’ Retirement Fund (ATRF)

BDC Capital Inc

Caisse de dépôt et placement du Québec (CDPQ)

Capital Régional et Coopératif Desjardins

Dancap Private Equity Inc

Fondaction CSN

Fonds de solidarité FTQ

Fonds de solidarité FTQ (Regional)

Investissement Quebec

Kensington Capital Partners Limited

Northleaf Capital Partners

Ontario Teachers’ Pension Plan (OTPP)

Teralys Capital

PARTICIPATING LIMITED PARTNERS

If you would like to have your firm included in future reports, please contact either [email protected] or [email protected]


FOREWORD

h1 2017 VC & PE Québec Market Overview: Strong VC Investment Pace Continues; PE Investment Sees Y-o-Y Growth

Québec venture capital saw $366M invested over 34 deals in Q2 2017—more than double the amount invested in the previous quarter and only 3% lower than the same quarter last year. Second to Ontario for Canada’s most active province for VC activity, Québec accounted for 26% of the total number of Canadian VC deals (68 out of 260) in the first half of 2017 and almost one third of all dollars invested ($544M out of $1.6B).

The average VC deal size spiked to $10.8M which is a staggering 104% higher than the previous quarter ($5.3M) and 84% higher than the 2016 average of $5.9M. Three $50M+ mega-deals accounted for just over half of total dollars invested in Québec VC, with the largest being the Montréal-based Element AI Inc.’s historic $141M series A round.

On the private equity side, $1.4B was invested over 94 deals in Q2 2017 in Quebec, a 52% decrease from the amount invested in Q1, but 49% higher than Q2 2016. However, Québec captured an impressive 57% of all Canadian PE deals (156 out of 276) and 31% of all dollars invested ($4.2B out of $13.7B).

The average PE deal size in Q2 2017 was $14.5M, down 69% from Q1 but up 32% from Q2 2016. Just over a quarter (26%) of all deals were between $1M-$5M in H1 2017, with deals between $5M-$25M capturing a 19% share of the province’s deal activity.

Québec venture capital activity driven by mega deals ($50M+ category), while Québec represents almost a third of private equity dollars invested in Canada


VC & PE ACTIVITY // H1 2017

224 dealstotal #

156deals

68deals

$4.7btotalinvested

$4.2b

Private Equity Venture Capital

$544M


Laurentides

Outaouais

Nord-du-Québec /Abitibi-Témiscamingue

Laval

18

6

Montréal Montérégie

Lanaudière

7

Estrie

Centre-du-Québec

62

Québec

Chaudière-Appalaches

Mauricie

1

5

Saguenay-Lac-St-Jean /Côte-Nord

Bas-Saint-Laurent

Gaspésie/Îles-de-la-Madeleine

3

61

74

4348 23356

81

102

81

VC & PE ACTIVITY BY ADMINISTRATIVE CENTRE // H1 2017

montréal

91 DEALSmost active region

total #

Private Equity

Venture Capital


VENTURE CAPITAL QUÉBEC MARKET OVERVIEW




QUÉBEC VENTURE CAPITAL HIGHLIGHTS // H1 2017

Q2 2017 VC HIGHLIGHTS:

$366M was invested over 34 deals in Q2 in Quebec, more than double the amount invested in the previous quarter and only 3% lower than the same quarter last year

The average deal size spiked to $10.8M, a staggering 104% higher than the previous quarter ($5.3M) and 84% higher than the 2016 average ($5.9M)

Three $50M+ mega-deals accounted for 52% of total dollars invested, the largest of which was Montreal-based Element AI Inc.’s $141M series A round

H1 2017 VC HIGHLIGHTS:

Quebec captured 26% of the total number of Canadian VC deals (68 out of 260) and a third of dollars invested ($544M out of $1.6B)

38% of VC activity in the province was in deal sizes from $1M-$5M, followed by deals between $100K-$500K capturing an 18% share

ICT companies garnered a 61% share of total dollars invested, up 15% from the 2016 share

51% of all deals were in early stage companies receiving 80% of dollars during the period

71% of all deals in the province were in Montreal-based companies

Notable exits included the $392M Airbnb acquisition of Montreal-based Luxury Retreats and the $133M acquisition of Saint-Laurent based Accedian Networks

Key Findings:


6842

24

113 15

$544m

$620MOntario

$410MBC $9M

Alberta

$5MManitoba

Québec

Nova Scotia$23M

New Brunswick

Newfoundland& Labrador

$8M

$1M

$6MSaskatchewan

1

87

$1.6btotal260 dealstotal #

VENTURE CAPITAL HEAT MAP // H1 2017


QUARTER-OVER-QUARTER VC INVESTMENT IN QUÉBEC

TOTAL:83 DEALS

$307M

TOTAL:111 DEALS

$344M

TOTAL:171 DEALS

$697M

TOTAL:168 DEALS

$984M

TOTAL:68 DEALS

$544M

$ Millions Invested

# Deals

2013 2014 2015 2016 2017

NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.

0

10

20

30

40

50

60

70

80

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

Q2Q1 Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1 Q3 Q2

$13

4

$8

4

$6

6 $30

$72

$16

8

$73

$6

1

$19

2

$22

7

$21

7

$13

6

$17

9

$36

6

$37

7

15

29

21

18

28

27

34

22

3839

61

3329

56

$23

50

$26

8

Q4

$20

3

33

34

34


Total Deals $ Millions

< $100K

$100 - $500K

$500K - $1M

$1M - $5M

$5M - $20M

$20M - $50M

$50M +

1

12

9

26

10

3

3

$0

$3

$6

$56

$86

$108

$285

VC ACTIVITY BY DEAL SIZE // H1 2017 mega deals capture

largest share of dollars invested


ICT Life Sciences CleanTech Agri-Business

0

10

20

30

40

50

60

70

80

100

90

$0

$60

$120

$180

$240

$300

$360

$420

$480

$540

$600

2016201520142013 20142013 201320162015 20152014 201420132016 20162015

$11

8

$18

8

$52

$31

7

$45

4

H12017

H12017

H12017

H12017

$33

4

$31

5

$6

7

$28

8

$48

$29

$13

4

$6

1

$97

$6

2

$20

$30

$44

$7$23

1210

75

108

5

17 16

10

6

41

32

1911

31

90

85

64

50

VC SECTOR BREAKDOWN // 2013-H1 2017 $ Millions Invested

# Deals

NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST

PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.


VC STAGE BREAKDOWN // 2013-H1 2017

Seed Early Stage Later Stage

0

10

20

30

40

50

60

70

80

100

90

$0

$60

$120

$180

$240

$300

$360

$420

$480

$540

$600

2016201520142013 2016201520142013 2016201520142013

$16

$10

8

$18

4

$41

$17

3

$12

9

$27 $35

8

$29

6

$39

H12017

H12017

H12017

$28

$41

4

$43

7

$53

1

29

36

45

36

18

31

48

73

100

21

35

27

49

32

14

$78

$ Millions Invested

# Deals

NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST

PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.


TOP 10 DISCLOSED QUÉBEC VC DEALS // H1 2017

COMPANY NAME ADMIN. CENTRE SECTOR DISCLOSED INVESTORS $ MIL.

ELEMENT AI INC MONTRÉAL ICTBDC CAPITAL INC., DATA COLLECTIVE, FMR LLC (FIDELITY), HANWHA INVESTMENT CORP, INTEL CAPITAL, MICROSOFT VENTURES, NATIONAL BANK OF CANADA, NVIDIA CORPORATION, REAL VENTURES

$141

REPARE THERAPEUTICS INC. BAS-SAINT-LAURENT LIFE SCIENCES

VERSANT VENTURE MANAGEMENT, LLC, MPM CAPITAL, BDC CAPITAL INC., CELGENE EUROPEAN INVESTMENT CO. LLC, FONDS DE SOLIDARITÉ FTQ, FONDS RÉGIONAUX DE SOLIDARITÉ FTQ

$91

BREATHER PRODUCTS INC. MONTRÉAL ICT MENLO VENTURES, RRE VENTURES, SLOW VENTURES, VALAR VENTURES MANAGEMENT LLC $53

INOCUCOR TECHNOLOGIES INC. MONTRÉAL AGRIBUSINESS CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS, CLOSED LOOP CAPITAL, CYCLE CAPITAL MANAGEMENT (CCM), TPG CAPITAL LP $39

STERINOVA INC. MONTÉRÉGIE LIFE SCIENCES FONDS DE SOLIDARITÉ FTQ $12

WORKJAM INC MONTRÉAL ICT BLUMBERG CAPITAL, FOUNDER COLLECTIVE, LERER HIPPEAU VENTURES $12

AUTOMAT TECHNOLOGIES INC MONTRÉAL ICT COMCAST VENTURES $11

AIREX ENERGY INC. LAVAL CLEANTECH CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS, CYCLE CAPITAL MANAGEMENT (CCM), CDN PRIVATE INVESTORS $7

E2METRIX INC. ESTRIE CLEANTECH CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS $6

CMLABS SIMULATIONS INC. MONTRÉAL ICT CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS, VCIC/EMERILLON CAPITAL $5


TOP DISCLOSED VC EXITS // H1 2017

VC INVESTORS COMPANY SECTOR EXIT TRANSACTION ACQUIRED BY $ MIL.

CLARIDGE, INOVIA CAPITAL, GROUPE DYNAMITE, TERALYS, INTERMEDIA PARTNERS

LUXURY RETREATS INTERNATIONAL INC. ICT M&A AIRBNB $392

FONDS DE SOLIDARITÉ FTQ, RHO CANADA VENTURES, SUMMIT PARTNERS, SKYPOINT CAPITAL CORPORATION ACCEDIAN NETWORKS INC. ICT M&A BRIDGE GROWTH

PARTNERS $133

ANGES QUÉBEC, BDC CAPITAL, CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDIN, FONDACTION CSN, GROUPE ACCÈS CAPITAL, INC. OPTOSECURITY INC. ICT M&A VANDERLANDE

INDUSTRIES CANADA INC. UNDISCLOSED

NOTE: There were 3 additional undisclosed exits involving

Quebec-based companies


Real Ventures


BDC Capital


iNovia Capital Inc.

Cycle Capital Management (CCM)

BDC Healthcare Fund

BDC IT Venture Fund

BDC Industrial, Clean and Energy Technology (ICE) Venture Fund

Portag3 Ventures

Fondaction CSN

$312

$81

$216

Total Deals $ Millions*

21

21

17

9

8

8

5

5

4

4

4

$30

$110

$188

$98

$90

$57

$61

$1

MOST ACTIVE VC FIRMS IN QUÉBEC // H1 2017

* TOTAL DEAL VALUES - INCLUDES ALL PARTICIPATING INVESTORS

real ventures

21 DEALSmost active FIRM


PRIVATE EQUITY QUÉBEC MARKET OVERVIEW




PRIVATE EQUITY HIGHLIGHTS // H1 2017

Q2 2017 PE HIGHLIGHTS:

$1.4B was invested over 94 deals, down 52% from the amount invested in the previous quarter but 49% higher than the same quarter last year

The average deal size in Q2 was $14.5M, down 69% from Q1 but up 32% from the same quarter last year

H1 2017 PE HIGHLIGHTS:

Quebec captured 57% of all Canadian PE deals (156 out of 276) and 31% of all dollars invested ($4.2B out of $13.7B)

Just over a quarter (26%) of all deals were between $1M-$5M, with deals between $5M-$25M capturing a 19% share of the province’s deal activity

The largest $2.2B mega buyout deal of Montreal-based Garda World Security Corp. dwarfed all others in 2017

The largest deal involving Canadian investors was the $200M growth investment in La Coop fédérée with participation by Fondaction CSN, Fonds de solidarité FTQ and the National Bank of Canada

There have been 32 exits involving Quebec-based companies this year

Key Findings:


1563421

12 3

$1.4b$1.3b

$4.2b$6.3b

Ontario

BCAlberta

Saskatchewan

Québec

NANova Scotia

$9m

$723MManitoba

4Prince Edward

Island1

NA

46

$13.9btotal277 dealstotal #

PRIVATE EQUITY HEAT MAP // ALL PE DEALS // H1 2017


TOTAL:66 DEALS

$1.7B

TOTAL:98 DEALS

$5.8B

TOTAL:176 DEALS

$5.5B

TOTAL:347 DEALS

$3.8B

TOTAL:156 DEALS

$4.2B

$ Millions Invested

# DealsQUARTER-OVER-QUARTER INVESTMENT ACTIVITY IN QUÉBEC

NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.

2013 2014 2015 2016 2017

$0

$500

$1,000

$1,500

$2,000

$2,500

0

20

40

60

80

100$3,000

Q2Q1 Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

$42

$1,

458

$15

4

$1,

141

$1,

917

$1,

843

$9

01

$1,

729

$26

7

$2,

556

$9

05

$1,

255

$9

15

12

25 21 2025

2825

30

49

4651

87

92

Q3

85

$6

05

Q2

$1,

040

$2,

86

0

$1,

366

83

62

94

Q4

$8

4

8


Total Deals $ Millions

< $100K

$100 - $500K

$500K - $1M

$1M - $5M

$5M - $25M

$25M - $100M

$100M - $500M

$500M-$1B

$1B-$2.5B

$2.5B+

3

20

26

41

30

20

3

0

1

0

$0.2

$5

$16

$84

$343

$815

$762

0

$2,200

0

single mega deal captures

the largest share of pe dollars

PE ACTIVITY BY DEAL SIZE // H1 2017


PE SECTOR BREAKDOWN // H1 2017

49 deals

most active sector

Industrial & Manufacturing

49

22

22

19

12

10

6

5

5

3

3

0

0

# Deals $ Millions

Industrial & Manufacturing

ICT

Mining & Resources

Consumer & Retail

Agri-Forestry

Business Products & Services

Life Sciences

Others

CleanTech

Financial

Automotive & Transportation

Oil & Gas, Power

Real Estate

$319

$304

$286

$94

$859

$43

$6

$2207

$62

$26

$20

0

0


TOP DISCLOSED QUÉBEC PE DEALS // H1 2017

COMPANY NAME ADMIN. CENTRE DISCLOSED INVESTORS INVOLVED IN TRANSACTION SECTOR $ MIL.

GARDA WORLD SECURITY CORP. MONTRÉAL APAX PARTNERS LLP, RHÔNE GROUP LLC OTHERS $2,200

LA COOP FÉDÉRÉE MONTRÉAL FONDACTION CSN, FONDS DE SOLIDARITÉ FTQ, NATIONAL BANK OF CANADA AGRI-FORESTRY $200

ACCEDIAN NETWORKS INC. MONTRÉAL BRIDGE GROWTH PARTNERS LLC, FONDS DE SOLIDARITÉ FTQ, RHO CANADA VENTURES, SKYPOINT CAPITAL CORPORATION, SUMMIT PARTNERS ICT $133

ESTRUXTURE MONTRÉAL CANDEREL MANAGEMENT INC. ICT $80

PANGEA OPÉRATIONS AGRICOLES S.E.C. / PANGEA TERRES AGRICOLES S.E.C.

MONTRÉAL FONDS DE SOLIDARITÉ FTQ, CDN PE INVESTORS AGRI-FORESTRY $58

DUMONT NICKEL PROJECT NORD-DU-QUÉBEC / ABITIBI-TÉMIS WATERTON GLOBAL RESOURCE MANAGEMENT MINING & RESOURCES $54

FALCO RESOURCES LTD. MONTRÉAL CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS, FONDS DE SOLIDARITÉ FTQ, HAYWOOD SECURITIES INC., INVESTISSEMENT QUÉBEC MINING & RESOURCES $50

BLACKROCK METALS INC. MONTRÉAL INVESTISSEMENT QUÉBEC, ORION RESOURCE PARTNERS (USA) LP MINING & RESOURCES $40

GROUPE NORBEC INC. MONTÉRÉGIE BDC CAPITAL INC., CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS, SCOTIABANK BANK OF NOVA SCOTIA

INDUSTRIAL & MANUFACTURING $39

EDDYFI NDT INC QUÉBEC CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) INDUSTRIAL & MANUFACTURING $37


TOP PE EXITS IN QUÉBEC// H1 2017

SELLER COMPANY BUYER $ MIL.

APAX PARTNERS GARDA WORLD SECURITY CORP. RHONE CAPITAL $2,200

CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS BEAUFIELD RESOURCES NA - SALE OF SHARES ON PUBLIC MARKET $276

CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS CARTIER RESOURCES INC NA - SALE OF SHARES ON PUBLIC MARKET $0.2

VECTOR CAPITAL CORP. 20-20 TECHNOLOGIES INC. GOLDEN GATE CAPITAL MANAGEMENT LLC UNDISCLOSED

KILMER CAPITAL PARTNERS ALTASCIENCES GROUP AUDAX GROUP UNDISCLOSED

NOTE: There were 27 additional undisclosed exits

from Quebec-based companies


MOST ACTIVE PE INVESTORS IN QUÉBEC // H1 2017

* TOTAL DEAL VALUES – INCLUDES ALL PARTICIPATING INVESTORS

most active PE investor

66 DEALSFonds de solidarité FTQ

66

49

18

14

11

7

4

2

2

# Deals $ Millions*



Fondaction CSN

Investissement Québec

Caisse de dépôt et placement du Québec (CDPQ)

BDC Capital Inc.

XPND Capital

Novacap Investments Inc.

Persistence Capital Partners

$937

$533

$305

$240

$294

$90

$12

$31

$15


CVCA METHODOLOGY // VENTURE CAPITAL

Venture Capital Data:

Verified completed equity or quasi-equity venture capital deals only (non-equity or project-based government funding, pharmaceutical development deals, senior debt, venture capital-backed acquisitions, and angel financing are not included)

VC DEVELOPMENT STAGES

SEED STAGE COMPANY HAS A CONCEPT OR PRODUCT UNDER DEVELOPMENT, BUT IS PROBABLY NOT FULLY OPERATIONAL.

EARLY STAGE COMPANY HAS A PRODUCT OR SERVICE IN TESTING OR PILOT PRODUCTION. IN SOME CASES, THE PRODUCT MAY BE COMMERCIALLY AVAILABLE.

LATER STAGE PRODUCT OR SERVICE IN PRODUCTION AND COMMERCIALLY AVAILABLE. COMPANY IS GENERATING ON-GOING REVENUE, BUT NOT NECESSARILY, PROFITABLE.

VC SECTORS

ICT COMPUTER HARDWARE AND SOFTWARE AND SERVICES, INTERNET SOFTWARE OR SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE AND TELECOM TECHNOLOGIES AND SERVICES

LIFE SCIENCES BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES

CLEANTECH ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES

AGRIBUSINESS TRADITIONAL AND ADVANCED AGRICULTURAL TECHNOLOGIES AND SERVICES

QUÉBEC ADMINISTRATIVE REGIONS

NORD-DU-QUÉBEC / ABITIBI-TÉMISCAMINGUE

OUTAOUAIS

LAURENTIDES

LAVAL

MONTRÉAL

MONTÉRÉGIE

LANAUDIÈRE

MAURICIE

ESTRIE

CENTRE-DU-QUÉBEC

QUÉBEC

CHAUDIÈRE-APPALACHES

SAGUENAY-LAC-ST-JEAN/ CÔTE-NORD

BAS-SAINT-LAURENT

GASPÉSIE/ÎLES-DE-LA-MADELEINE


CVCA METHODOLOGY // PRIVATE EQUITY

Private Equity Data:

Dataset includes only completed private equity deals (announced but yet to be completed deals are not included)

PE DEAL TYPE

BUYOUT INVESTMENT FOR THE CONTROL OF A PORTFOLIO COMPANY, INCLUDING PLATFORM CREATION, SECONDARY BUYOUT

GROWTH SIGNIFICANT MINORITY INVESTMENT INTO A PORTFOLIO COMPANY, THROUGH NEW CAPITAL INFUSION AND RECAPITALIZATION

ADD-ON CORPORATE ACQUISITIONS BY MAJORITY CONTROLLED PE BACKED PORTFOLIO COMPANIES

DEBT DEBT INVESTMENT INTO PORTFOLIO COMPANIES

INFRASTRUCTURE INVESTMENTS INTO DEVELOPMENT AND MANAGEMENT OF INFRASTRUCTURE ASSETS BUT PE DOES NOT OWN THE UNDERLYING ASSETS

continued

QUÉBEC ADMINISTRATIVE REGIONS

NORD-DU-QUÉBEC / ABITIBI-TÉMISCAMINGUE

OUTAOUAIS

LAURENTIDES

LAVAL

MONTRÉAL

MONTÉRÉGIE

LANAUDIÈRE

MAURICIE

ESTRIE

CENTRE-DU-QUÉBEC

QUÉBEC

CHAUDIÈRE-APPALACHES

SAGUENAY-LAC-ST-JEAN/ CÔTE-NORD

BAS-SAINT-LAURENT

GASPÉSIE/ÎLES-DE-LA-MADELEINE


CVCA METHODOLOGY // PRIVATE EQUITY

PE SECTORS

AGRI-FORESTRY AGRICULTURE, FOODS AND FORESTRY

AUTOMOTIVE & TRANSPORTATION TRANSPORTATION, LOGISTICS AND RELATED SERVICES

BUSINESS PRODUCTS & SERVICES BUSINESS PRODUCTS AND SERVICES

CLEANTECH ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES

CONSUMER & RETAIL CONSUMER PRODUCTS AND SERVICES, BRICK AND MORTAR RETAIL

FINANCIAL FINANCIAL SERVICES

ICT COMPUTER HARDWARE/SOFTWARE & SERVICES, INTERNET SOFTWARE & SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE & TELECOM AND SERVICES

INDUSTRIAL & MANUFACTURING EQUIPMENT AND MATERIAL MANUFACTURING

LIFE SCIENCES BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES

MINING & RESOURCES NON OIL AND GAS NATURAL RESOURCES

OIL & GAS, POWER OIL & GAS, POWER AND UTILITIES

REAL ESTATE PROPERTY DEVELOPMENT AND MANAGEMENT

continued


CVCA/RÉSEAU CAPITAL ABOUT & CONTACT

AuthorsDarrell oversees all data related to Canadian private capital investments, exit and fundraising activities for the CVCA. Darrell has held senior positions at several global organizations including the Toronto Stock Exchange, Institutional Limited Partners Association, Thomson Reuters, Glaxosmithkline and the Interac Association. In between these, he also started his own successful management consulting company. He has worked in New York, London and Shanghai, but Toronto remains his favourite working city. He brings to the CVCA a passion for telling compelling stories with data. Darrell is currently on the board of a non-profit social housing in Peel, a member of Volunteer Toronto as well as an active volunteer with Woodgreen Community Services. He holds a BA in Philosophy/History from the University of Western Ontario and an MBA from the Rotman School of Management.

[email protected] | 416-487-0519 ext. 208

David executes research on venture capital and private equity deals within Canada. David is responsible for monitoring industry activity and maintaining the CVCA’s Infobase by entering data, including investments, exits, deals and fundraising activities on a daily basis. David holds a BA in Philosophy and Psy-chology from the University of Toronto.

[email protected] | 416-487-0519 ext. 202

DARRELL PINTOResearch Director

DAVID KORNACKI Research Analyst

About CVCAThe Canadian Venture Capital and Private Equity Association is the voice of Canada’s venture capital and private equity industry. We are focused on improving the private capital ecosystem by broadening industry awareness and providing market research, networking, and professional development opportunities.

We also advocate on behalf of the industry to ensure sound public policy that encourages a favourable investment environment. The CVCA works alongside its members, who represent the vast majority of private capital firms in Canada, to improve the industry and drive innovation and growth.

For more information, visit cvca.ca

@CVCACanada /CVCACanada

CVCA - Canadian Venture Capital and Private Equity Association

372 Bay St., Suite 1201 Toronto, ON M5H 2W9

About Réseau CapitalRéseau Capital, the Québec Venture Capital and Private Equity Association, is the only private equity association that brings together all stakeholders involved in the Québec investment chain. The mission of Réseau Capital is to contribute to the development and efficient operation of the private equity industry, which plays a major role in the development and financing of businesses in Québec.

Founded in 1989, Réseau Capital represents private equity, tax-advantaged and public investment companies as well as banks, accounting and law firms, along with many professionals working in the field.

To arrange for an interview, please contact:Catherine Berbery | 514-880-2372 | [email protected]

For more information, visit reseaucapital.com

@reseaucapital Réseau Capital

Espace CDPQ – 3 Place Ville-Marie, suite 12350, Level L, Montréal, QC H3B 0E7

To obtain estimates for additional custom InfoBase data reports please contact [email protected]

VC & PE QUÉBEC MARKET OVERVIEW // H1 2017 · PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU...

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