Canadian VC reaches $9.42B in 2022, 2nd best year since 2017

TORONTO, May 18, 2023 /CNW/ - Canadian venture capital (VC) disbursements¹ reached $9,425 million from 708 financings in 2022. Though a substantial decrease (33%) in disbursements from 2021, the best Canadian VC year in history, 2022 still ranked as the second-best VC year in terms of disbursements.

All dollar ($) figures in Canadian dollars unless otherwise noted.

US and International investors invested $4.24 billion and $1.70 billion, representing 45% and 18% of the total disbursements respectively. Canadian investors invested $3.49 billion for 37% of the total.

VC investors, Canadian and non-Canadian, invested a combined $3.30 billion or 35% of the total disbursements. Specifically, Canadian, US and international VCs invested $2,062 million (22%), $972 million (10%) and $268 million (3%) respectively.

Corporate investors led by US corporate investors invested a combined $2.44 billion (26%), consisting of $1,154 million, $831 million, and $454 million by US, International and Canadian corporation investors respectively.

Family Office investors investing $893 million (9%), comprised of $367 million (Canadian), $289 million (International) and $$237 million (US).

Following VC, Corporate and Family Office investors, Government investors invested $780 million, $774 million (8%) of which by Canadian government investors. 

Provinces

Ontario, Quebec, and BC companies were the leading recipients of VC disbursements, securing $3.50 billion, $2.45 billion $2.23 billion respectively.

Municipal Cities

Companies from 66 municipal cities secured venture capital funding in 2022 with Toronto, Montreal and Vancouver leading with $2.49 billion, $2.10 billion and $1.73 billion respectively.

Sectors

ICT companies raised $5.13 billion or 54% of the total disbursements. Cleantech² companies secured $1.97 million, ahead of $1.14 billion raised by biotech companies.

Stages

Early stage and growth/late-stage financings raised $5.66 billion and $2.21 billion respectively.

Seed/pre-seed stage financings raised $598 million from 169 financings. Bridge financing raised $442 million from 107 financings.

Company size

Companies with 0-49, 50-99, 100-499 and 500+ employees raised $6.17 billion, $707 million, $2.54 billion, and $10 million respectively.

48 Canadian venture capital funds raised $4.74 billion in 2022. 2 BDC funds (allocated capital) accounted for 19% of the total fundraising by Canadian VC firms.

Dentons Canada LLP led all VC firms in 2022 involving in 114 VC financings.

"2022 reveals the continuing overconcentration of venture capital investment in three provinces, namely Ontario, Quebec and British Columbia which together accounted for 86.7% of all venture capital investment dollars. This situation poses a challenge for government policy makers and their regional development efforts - namely how, or even whether, to promote venture capital investment outside of those three provinces. Another feature revealed by the data is the 20.9% contribution of clean tech which bears watching in light of the federal government 2023 Budget which committed significant policy support to clean tech. Finally, it is notable that 65.4% of all venture capital investment dollars went to the smallest companies (0 - 49 employees), which suggests that scale ups received comparably less support, thus continuing a pattern of underfunding for medium-sized firms," commented Richard Rémillard, President of Rémillard Consulting Group (RCG).

Summary report can be downloaded from financings.ca website:  https://www.financings.ca/reports/

Included

• Equity and quasi-equity investments in companies directly.

Excluded

• Secondary transactions (investor/shareholder exit events) in which companies received no money
• PE transactions
• Financing by foreign headquartered/domiciled companies with Canadian subsidiaries.

Rémillard Consulting Group (RCG) is a unique, Ottawa-based, bilingual consulting firm specializing in providing private sector, government & trade association clients with creative, research-grounded solutions to business issues and public policies involving the Canadian financial services industry. For more information: [email protected]

With over 78,700 financing transactions in its Canadian Financings database, CPE Analytics is Canada's leading all financing intelligence provider.  We provide comprehensive, verified, and unbiased information and unmatched insights and intelligence on private and public financings, initial public offerings (IPOs), M&As, professional investment firm fundraising activities.

We cover all aspects of VC information, not limited to but including Canada's only information on VC firm fundraising, VC funding sources (where all the VC came from).

CPE Analytics is the data analytics division of CPE Media & Data Company.  More Info: https://cpeanalytics.ca,  https://financings.ca

Founded by Canada's the most experienced private capital and financing research experts, CPE Media & Data Company is Canada's leading all financing news and intelligence provider. More information: https://cpecompany.ca/

SOURCE CPE Media Inc.

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