VENTURE CAPITAL CANADIAN MARKET OVERVIEW // H1 2020 · 2020. 8. 25. · VENTURE CAPITAL CANADIAN...
Transcript of VENTURE CAPITAL CANADIAN MARKET OVERVIEW // H1 2020 · 2020. 8. 25. · VENTURE CAPITAL CANADIAN...
VENTURE CAPITAL CANADIAN MARKET OVERVIEW
// H1 2020
VENTURE CAPITAL CANADIAN MARKET OVERVIEW // H1 2020 | 2
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CONTENTS
PARTICIPATING DATA CONTRIBUTORS .......................................................................3 FOREWORD ......................................................................................................................4 VENTURE CAPITAL HIGHLIGHTS ..................................................................................5 DATA VISUALIZATIONS ...................................................................................................6 VENTURE CAPITAL HEAT MAP ................................................................................................................. 6 QUARTER-OVER-QUARTER VC INVESTMENT ACTIVITY ................................................................. 7 VC ACTIVITY BY DEAL SIZE ...................................................................................................................... 8 TOP 10 DISCLOSED CANADIAN VC DEALS...........................................................................................9 TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES ............................................................. 10 VC SECTOR BREAKDOWN ....................................................................................................................... 11 VC STAGE BREAKDOWN .......................................................................................................................... 12 VENTURE DEBT HEAT MAP ..................................................................................................................... 13 VC EXITS ....................................................................................................................................................... 14 TOP DISCLOSED VC EXITS ..................................................................................................................... 15MOST ACTIVE VC FIRMS // FUNDS ....................................................................................................... 16
VENTURE CAPITAL METHODOLOGY ......................................................................... 17 AUTHORS, ABOUT CVCA AND CONTACT INFO ..................................................... 18
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // H1 2020 | 3
PARTICIPATING DATA CONTRIBUTORS
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If you would like to have your firm included in future reports, please contact [email protected]
CVCA thanks the following firms who participated in its H1 2020 survey.
7 Gate Ventures
Accelerate Fund
AmorChem Fund
Amplitude Ventures
Anges Quebec
Anges Quebec Capital
Arctern Ventures
AVAC Ltd.
Azure Capital Partners
BCF Ventures
Brightspark Capital
CIC Capital Ventures
Clanton Capital
Conexus Venture Capital
CTI Life Sciences
Cycle Capital Management/EcoFuel
Dash40 Ventures
Emerald Technology Ventures
Espresso Capital Ltd.
Evok Innovations
Ferst Capital
Fight Against Cancer Innova-tion Trust
First Ascent Ventures
Fonds Innovexport
Framework Ventures
Freycinet Ventures
Good News Ventures
GreenSoil Investments
Highline Beta
iGan Partners
Information Venture Partners
inovia Capital
Island Capital Partners
Klass Capital
Luge Capital
Lumira Ventures
Mantella Ventures Partners
MaRS Catalyst Fund
MaRS IAF
McRock Capital
Metiquity Ventures
Mistral VP
NAventures (National Bank of Canada)
New Brunswick Innovation Foundation
OMERS Ventures
Panache Ventures
Pangaea Ventures
Portag3 Ventures
Quark Venture
Real Ventures
Relay Ventures
Renewal Funds
Roadmap Capital
Round 13
ScaleUP Ventures
Sectoral Asset Management Inc.
Tactico Inc.
Tandem Expansion
TandemLaunch
TELUS Ventures
Top Renergy
TVM Life Sciences
V3-Ventures
Vanedge Capital Partners
Version One Ventures
White Star Capital
Yaletown Partners
Venture Capital FirmsAIP Private Capital
ARC Financial
Ardenton Capital Corporation
BDC Growth Equity
BDC Growth & Transition Capital
BMO Capital Partners
Bond Capital
CAI Capital Partners
Canadian Business Growth Fund
Capital Financière Agricole
Clairvest Group Inc.
Clearspring Capital Partners
Crédit Mutuel Equity
Founders Group of Food Compa-nies Inc.
Fulcrum Capital Partners
Highland West Capital
InstarAGF Asset Management
Ironbridge Equity Partners
Kayne Capital
Killick Capital Inc.
m2s Capital
Mink Capital
Mosaic Capital Corporation
Novacap Management Inc.
OMERS Private Equity Inc.
ONEX Corporation
PenderFund Capital Management
Persistence Capital Partners
PFM Capital Inc
PRIVEQ Capital Funds
Regimen Equity Partners
Seafort Capital
Searchlight Capital Partners
TIMIA Capital Corp
Tricor Pacific Capital Ltd.
TriWest Capital Partners
Vistara Capital Partners
Westcap Mgt. Ltd
Western Investment Company of Canada Limited
XPND Capital
Private Equity & LSVCC FirmsAlberta Enterprise Corporation
Alberta Teachers’ Retirement Fund (ATRF)
BDC Venture Capital
Bluesky Equities
Caisse de dépôt et placement du Québec
Desjardins Capital
Fondaction
Fonds de solidarité FTQ
Fonds de solidarité FTQ (Regional)
Investissement Quebec
Kensington Capital Partners Ltd.
Northleaf Capital Partners
Ontario Teachers’ Pension Plan (OTPP)
Teralys Capital
Limited Partners
VENTURE CAPITAL CANADIAN MARKET OVERVIEW // H1 2020 | 4
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FOREWORD
CAD $1.7B Invested in Q2; Larger Cheque Sizes Drive Strongest Q2 Performance on CVCA Records
CAD $1.7B was invested over 145 deals in the second quarter of 2020 which is 23% higher than the same quarter in 2019 ($1.35B) and more than double the amount invested in Q1 2020 ($818M). This was the highest investment in a second quarter since the CVCA began collecting industry data in 2013.
Large deal sizes (CAD $20M+) drove most of the dollars invested in H1 2020 which accounted for 69% of the total dollars invested. 11 mega-deals (CAD $50M+) closed in Q2 2020, totalling $884M invested. As a result, the average deal size in Q2 2020 was CAD $11.45M; 56% higher than the average deal size during the five-year period between 2015-2019 (CAD $7.3M).
Later stage Canadian companies received 50% of all funding (CAD $1.2B) in the first half of 2020, a sharp increase compared to the share of funding later stage companies collected last year with only 22%.
“VC investment activity in Q2 was driven by government stimulus coupled with a slight adjustment in valuation,” said Kim Furlong, CEO, Canadian Venture Capital and Private Equity Association. “We saw fewer deals, larger
injections in portfolio holdings and VCs reviewing and re-evaluating deal flow that they may had passed on last year. The key is that VCs are continuing to invest.”
There were 13 mega-deals (CAD $50M+) in the first half of 2020, which accounted for a 43% share of total dollars invested. The largest was Vancouver-based AbCellera’s $144M Series B Round from a consortium of US investors and a strategic corporate investor.
There were 13 mega-deals (CAD $50M+) in the first half of 2020, which accounted for a 43% share of total dollars invested. Included in the mega-deals was Kitchener-based Miovision’s CAD $120M founding round led by TELUS Ventures with participation from previous investor, McRock Capital.
VC-backed exits picked up in second quarter, with an additional 7 exits closed. However, VC exits remain slow in comparison to previous years, with only 10 M&A exits in the first half.
PE in 2020 is pacing along the 2015-2019 average
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VENTURE CAPITAL HIGHLIGHTS // H1 2020
Key Findings $1.7B was invested over 145 deals in the second quarter this year
which is 23% higher than the same quarter in 2019 ($1.35B) and more than double the amount invested in Q1 2020 ($818M)
Large cheque sizes ($20M+) drove most of the dollars invested in H1 2020, accounting for 69% of total dollars invested
A total of 11 mega-deals ($50M+) closed in Q2 2020, totalling $884M invested. As a result, the average deal size in Q2 2020 was $11.45M; amounting to a 28% increase from Q2 2019 and 56% higher than the average deal size during the 5-year period between 2015-2019 ($7.3M)
H1 2020 showed a total of 13 $50M+ mega-deals overall, which accounted for a 43% share of total dollars invested. The largest of these was:Vancouver-based AbCellera’s $144M Series B Round from a
consortium of US investors and a strategic corporate investor62% of deal flow (163 out of 264 deals) was less than $5M with 51
deals between $5M-$20M totaling $507M
Ontario-based companies received 42% of investment ($1B); Quebec-based companies received a 24% ($599M) share followed by BC-based companies with 22% ($555M)
ICT companies grabbed 53% of total dollars invested in H1 2020 ($1.3B over 145 deals) with life sciences companies receiving a 29% share ($722M over 47 deals)
Later stage companies received 50% of all funding ($1.2B over 42 deals), a sharp increase in comparison to the share of funding later stage companies collected in 2019 with only 22%.
The pace of VC-backed exits picked up in Q2, with an additional 7 exits closed. VC exits remain slow in comparison to previous years, with only 10 M&A exits in the first half.Among the exits was inovia Capital-backed North, Inc., acquired
by Google for a reported $180M.
VENTURE CAPITAL CANADIAN MARKET OVERVIEW // H1 2020 | 6
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90
8142
27
$599M$1B
Ontario
$555MBritish
Columbia$197MAlberta
Québec
Nova Scotia$27M
New Brunswick$5M$29M
Manitoba
Newfoundlandand Labrador
$3M
4
7 6
5
1
1
Prince Edward Island$6M
$8MSaskatchewan
VENTURE CAPITAL HEAT MAP // H1 2020
$2.5Btotal
264 dealstotal #
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QUARTER-OVER-QUARTER VC INVESTMENT ACTIVITY
$0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
0
20
40
60
80
100
120
140
160
180
200
Q2Q1
$940
$703
Q3
$717
Q4
$839
$818
$1,6
60
Q2Q1
$592
$864
Q3$1
,114
Q4
$1,0
55
Q1
$629
Q2 Q3
$1,0
70
$710
Q4
$1,2
68
Q1 Q1 Q2
$897
Q2
$1,3
50
Q3
$2,4
14
Q4
$1,5
06
125119
145145
124
134
104
120 118111
128
143
108
129
116
151
130
163
TOTAL:528 DEALS
$3.2B
TOTAL:453 DEALS
$3.6B
TOTAL:508 DEALS
$3.7B
TOTAL:560 DEALS
$6.2B
TOTAL:264 DEALS
$2.5B
$ Millions Invested # Deals
2016 2017 2018 2019 2020
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VC ACTIVITY BY DEAL SIZE // H1 2020
Total Deals $ Millions
< $100K
$100K - $500K
$500K - $1M
$1M - $5M
$5M - $20M
$20M - $50M
$50M +
12
41
25
85
51
22
13
$1
$14
$21
$216
$507
$643
$1,077
$50M+DealsAccounted for 43%
OF TOTAL DOLLARS INVESTED
VENTURE CAPITAL CANADIAN MARKET OVERVIEW // H1 2020 | 9
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TOP 10 DISCLOSED CANADIAN VC DEALS // H1 2020
company name province Disclosed VC Firm(s) sector stage $ mil
ABCELLERA BC DCVC BIO, VIKING GLOBAL INVESTORS, PRESIGHT CAPITAL, STRATEGIC CORPORATE INVESTORS, ANGEL INVESTORS LIFE SCIENCES EARLY STAGE $144
MIOVISION TECHNOLOGIES INC. ONTARIO TELUS VENTURES, MCROCK CAPITAL ICT LATER STAGE $120
APPLYBOARD ONTARIOPLUG AND PLAY LLC, ARTIMAN VENTURES, BDC CAPITAL GROWTH & TRANSITION CAPITAL (BDC GTC), ANTHOS MANAGEMENT, LLC, FMR LLC (FIDELITY), DRIVE CAPITAL
ICT LATER STAGE $100
HOPPER QUEBEC WESTCAP, BDC IT VENTURE FUND, INVESTISSEMENT QUEBEC, CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC, OMERS VENTURES ICT LATER STAGE $98
VENTUS THERAPEUTICS QUEBEC VERSANT VENTURES, GV LIFE SCIENCES EARLY STAGE $81
SYMEND ALBERTASILICON VALLEY BANK, INOVIA CAPITAL, IGNITION PARTNERS, IMPRESSION VENTURES, BDC CAPITAL WOMEN IN TECHNOLOGY FUND, MISTRAL VENTURE PARTNERS, TELUS VENTURES, BMO CAPITAL PARTNERS
ICT LATER STAGE $73
TOP HAT ONTARIOGEORGIAN PARTNERS, INOVIA CAPITAL, UNION SQUARE VENTURES, EMERGENCE CAPITAL AND LEADERS FUND, BMO TECHNOLOGY AND INNOVATION BANKING GROUP
ICT LATER STAGE $72
WORKJAM QUEBEC INOVIA, FONDS DE SOLIDARITÉ FTQ, CLARIDGE, LERER HIPPEAU, BLUMBERG CAPITAL, HARMONY PARTNERS ICT LATER STAGE $71
ADA SUPPORT ONTARIO ACCEL, BESSEMER VENTURE PARTNERS, FIRSTMARK, VERSION ONE, LEADERS FUND, AND BURST CAPITAL ICT EARLY STAGE $64
UNBOUNCE ONTARIO CREST ROCK PARTNERS ICT EARLY STAGE $52
There were 3 undisclosed deals totalling 202.8M ommitted from this table.
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TOP 10 CANADIAN CITIES ADMINISTRATIVE CENTRES // H1 2020
68 DEALSTotal Deals $ Millions
1. Toronto
2. Montréal
3. Vancouver
4. Calgary
5. Edmonton
6. Kitchener, Waterloo, Cambridge
7. Ottawa
8. St. Johns - NL
9. Halifax
10. Victoria
68
63
33
17
10
8
7
5
5
4
$531
$563
$499
$185
$12
$311
$90
$3
$2
$19
1
10
9
6
4
5
2
7
8
#1 toronto $531M
3
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VC SECTOR BREAKDOWN // 2016 - H1 2020
0
40
80120
160
200
240
280
320
400
360
440
480
$0
$300
$600
$900
$1,200
$1,500
$1,800
$2,100
$2,400
$2,700
$3,000
$3,300
$4,000
$2,
259
2017 2018 2018 201820182016 20172016 201720162016
$1,9
14
$20
8
$18
5
2017 2019 201920192019 H12020
H12020
H12020
H12020
322
269
104 $
723
$67
2
$72
2
92 95
119
4328
145
4927 29
2722 29
$27
8
$41
4
$94
300
316
$64
6
$2,
428
$4,
028
$1,0
51
$18
5
$16 $
158
$40
0
$33
$1,3
08
478 6
ICT CLEANTECHLIFE SCIENCES AGRIBUSINESS
$ Millions Invested # Deals
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VC STAGE BREAKDOWN // 2016 - H1 2020
$0
$250
$500$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
$2,750
$3,000
20172016 20172016
$212
$1,5
94
$1,9
53
$1,3
53
20182018
262
232
192
8511979
42
$1,4
22
59$236
2019 H12020
$310
$251
2019 H12020
20172016 2018 2019 H12020
2019 H12020
$1,5
64
$1,3
68
$1,2
30
$59
$1,5
45
98
263
98
178
154
177194
25
5 0
30
60
90120
150
180
210
240
300
270
330
360
$2,7
42
$1,7
25
$199
$991
$ Millions Invested # Deals
SEED LATER STAGEEARLY STAGE GROWTH EQUITY
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$33M$50mOntario
$46MBritish
Columbia$1M
AlbertaNA
Saskatchewan
NANova Scotia
Québec
$2MNew
Brunswick
2
2
1
18
8
12
VENTURE DEBT* HEAT MAP // H1 2020
$132mtotal 34 deals
total #
* VC Debt deals are not included in the overall Canadian VC activity
VENTURE CAPITAL CANADIAN MARKET OVERVIEW // H1 2020 | 14
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VC EXITS // 2016–H1 2020
IPO/RTO**
$0
$300
$600
$900
$1,200
$1,500
$1,800
$2,100
$2,400
$2,700
$3,000
0
5
10
15
20
25
30
35
40
50
45
20172016 20172016
$584
$1,0
65
20182018
$1,0
33
$1,4
29
2019 H12020
2019 H12020
32
0 033
33
3936
2
10
$2,15
0
$1,6
00
$2,4
62
$278
Exit Value ($ Millions) # Exits * Includes transactions with undisclosed values ** IPO valuation
M&A*
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TOP DISCLOSED VC EXITS // H1 2020
There were 8 undisclosed VC Exits totalling $25.8 million in H1 2020.
vc investors company acquired by close date $ mil.
INOVIA NORTH INC. GOOGLE 2020-06-30 $180
FIRST ASCENT VENTURES RUBIKLOUD KINAXIS 2020-06-30 $81
VENTURE CAPITAL CANADIAN MARKET OVERVIEW // H1 2020 | 16
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MOST ACTIVE VC FIRMS // FUNDS // H1 2020
MOST ACTIVE PRIVATE INDEPENDENT FIRMS # ROUNDSSIZE OF TOTAL
ROUNDS*(CDN$ MIL)
VB 18 $81
INOVIA CAPITAL 15 $649
REAL VENTURES 14 $62
Round 13 Capital Inc. 12 $26
CYCLE CAPITAL MANAGEMENT/ECOFUEL 11 $56
PANACHE VENTURES 9 $47
BRIGHTSPARK CAPITAL 7 $20
BLUESKY EQUITIES 6 $13
MOST ACTIVE GOVERNMENT FUNDS # ROUNDSSIZE OF TOTAL
ROUNDS*(CDN$ MIL)
BDC CAPITAL 38 $549
MARS IAF 15 $35
BDC INDUSTRIAL, CLEAN AND ENERGY TECHNOLOGY (ICE) VENTURE FUND 10 $121
INVESTISSEMENT QUEBEC 10 $117
BDC IT VENTURE FUND 8 $355
NEW BRUNSWICK INNOVATION FOUNDATION 8 $1
MOST ACTIVE PENSION, RETAIL, CORPORATE & OTHER PUBLIC FUNDS # ROUNDS
SIZE OF TOTAL ROUNDS*
(CDN$ MIL)
DESJARDINS CAPITAL 18 $113
TELUS VENTURES 5 $220
FONDS DE SOLIDARITÉ FTQ 5 $107
MOST ACTIVE FIRMS IN VC DEBT DEALS # ROUNDSSIZE OF TOTAL
ROUNDS*(CDN$ MIL)
DESJARDINS 9 $28
CIBC INNOVATION BANKING 8 $52
VENBRIDGE 7 $2
ESPRESSO CAPITAL 3 $4* Total deal values - includes all participating investors
# Rounds
BDC Capital
Desjardins Capital
inovia Capital
MaRS IAF
Real Ventures
Round 13 Capital Inc.
Cycle Capital Management/Ecofuel
Investissement Quebec
Yaletown Partners
Panache Ventures
381815151412111099
Size of Total Rounds* (Cdn$ mil)
$549 $113 $649 $35 $62 $26 $56 $117 $67 $47
VENTURE CAPITAL CANADIAN MARKET OVERVIEW // H1 2020 | 17
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CVCA METHODOLOGY // VENTURE CAPITAL
VENTURE CAPITAL DATA:Verified completed equity, quasi-equity venture capital and venture debt deals only (non-equity or project-based government funding, pharmaceutical development deals, venture capital-backed acquisitions, and angel financing are not included)
VENTURE DEBT SHORT-TO-MEDIUM TERM, NON-DILUTIVE DEBT INSTRUMENT WITH NO EQUITY RIDER.
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.
GROWTH SIGNIFICANT MINORITY INVESTMENT TO DRIVE GROWTH AND SCALE WHICH CAN BE COMBINED WITH A SECONDARY TRANSACTION TO FACILITATE LIQUIDITY FOR EXISTING VC INVESTORS
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
vc development stages
vc sectors
ABOUT AND CONTACT To obtain estimates for additional custom CVCA Intelligence data reports please contact [email protected]
About CVCAOUR VISIONA thriving Canadian economy driven by private capital
OUR MISSION CVCA’s mission is to help our members fuel the economy of the future by growing the busi-nesses of today. We do this by supporting and connecting a vibrant private capital industry with advocacy, research, and education.
CVCA is also the nation’s ultimate resource for data on Canadian private capital investments.
Please visit cvca.ca
@CVCACanada CVCA
CVCA - Canadian Venture Capital and Private Equity Association
372 Bay St., Suite 1201 Toronto, ON M5H 2W9
Authorsdavid kornacki associate, research & [email protected]
jon jackson head of [email protected]
IZADELLA STA. ROMANA MARKETING & BRAND [email protected]