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US and foreign investors drive Q1 2022 Canadian VC investments to $3.37B
All dollar ($) figures in Canadian dollar unless otherwise noted. TORONTO, May 31, 2022 /CNW/ - Canadian Startup companies raised $3.371 billion in venture capital1 through 145 financings in Q1 2022, according to the Canadian Venture Capital Report released today by CPE Analytics, a division of CPE Media & Data Company. Q1 2022 VC funding sources (who is funding Canadian Startup companies?) US and foreign investors invested $1,983 million and $512 million in Canadian companies or 59% and 15% of the total respectively. Canadian investors' share dropped further to 26% of the total, down from previous low of 28% in 2021. ______________________________
In light of the war in Ukraine, it is worth noting that $14 million was invested by Russian entities into Canadian companies in Q1 2022. Russia's Severstal, controlled by oligarch Alexey Mordashov (who has been sanctioned by the European Union), invested into Ekona Power as part of $79 million financing which closed in November 2021 and January 2022. This funding round was led by Baker Hughes and included participation from BDC among others. US VCs and foreign corporate VCs led all investor types, investing $1,282 million and $456 million in Canadian companies respectively. Canadian VCs were the third largest with $303 million. US and foreign Investment regional breakdowns Ontario attracted the largest share (83%) of US and foreign investments. Atlantic region attracted the least share (17%). Q1 2022 VC disbursements The $3.37 billion disbursements in Q1 2022 were the second largest quarterly disbursements, behind the record of $4.84 billion in Q2 2021. Q1 2022 disbursements ($3,371 million) were up 13% from Q1 2021 ($2,985 million) though the number of financings (145) was down 32% from Q1 2021 (212). Provinces Alberta and Saskatchewan rounded up the top provinces with over $100 million investments with $336 million and $109 million respectively. Municipal Cities City of Toronto was the only $1 billion plus recipient city. Sectors Cleantech2 companies raised $477 million becoming the second active sector ahead of financial and biotech. Biotech raised $268 million, being relegated from usual 2nd place to 4th place. It should be noted that Ventus3' US $140 million financing was excluded as the money went to Waltham, Massachusetts based parent company, not to the Montreal based subsidiary. ______________________
Stages Seed/pre-seed financings raised $79 million from 25 financings representing 17% of total number of financings. Company size Q1 2022 VC fund fundraising (money raised by Canadian VC funds to invest in both Canadian and US/foreign companies) 8 Canadian venture capital funds, including 6 private, 1 social impact, and 1 corporate funds, raised $555 million in Q1 2022. Q1 2022 VC law firms The top six active VC law firms were Osler, Hoskin & Harcourt LLP, Fasken Martineau DuMoulin LLP, Borden Ladner Gervais LLP, LaBarge Weinstein LLP, Bennet Jones LLP, and Cox Palmer. "A continuing trend in Q1, 2022 that has been noticeable since 2019 is the predominance of VC funding provided by US investors. Some observers may view this as evidence of Canada's success in attracting foreign investment while others may conclude that this points to an ongoing risk factor to the Canadian innovation economy should that source of funding suddenly evaporate as has happened in previous downturns," commented Richard Rémillard, President of Rémillard Consulting Group (RCG). "The data also reveal that 76% of disbursements went to Toronto, Montreal and Vancouver alone with the vast majority of the rest of the country receiving little to no infusions of VC, a situation that is rife with implications for regional economic development and for the quality of the transition to the Innovation economy." Summary report Methodology
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Rémillard Consulting Group (RCG) CPE Analytics CPE Analytics is the data analytics division of CPE Media & Data Company. More Info: https://cpeanalytics.ca, https://financings.ca CPE Media & Data Company SOURCE CPE Media Inc. |