U.S. and foreign investors bring Canadian venture capital investment in the first quarter of 2022 to $3.37 billion

  • 145 venture capital financings for disbursements $3.37 billion in the first quarter of 2022.
  • Investors from the United States and Foreign Invested Countries/Regions $2.49 billion, an all-time high of 74% of total disbursements. American investors alone invested 59% for $1.98 billion.
  • Clean technology companies received $478 millionsecond behind $2.12 billion by ICT companies, in front of $451 million by financial companies.
  • Biotech companies have raised $268 millionmoving up to fourth from his usual second place.
  • U.S. and foreign venture capital firms led all types of investors, investing $1,282 million and $456 million respectively. Canadian VCs ranked 3rd invest $303 million.
  • $555 million raised by 8 Canadian venture capital funds.

All dollar figures ($) are in Canadian dollars, unless otherwise specified.

TORONTO, May 31, 2022 /CNW/ – Canadian start-ups have raised $3.371 billion in venture capital1 via 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 Venture Capital Funding Sources (Who Funds Canadian Startups?)

American and foreign investors have invested $1,983 million and $512 million in Canadian companies or 59% and 15% of the total respectively. The share of Canadian investors fell further to 26% of the total, down from the previous low of 28% in 2021.

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1

CPE Canadian VC investment data includes only primary equity issuance/funding by companies and excludes secondary transactions involving investors who purchase equity from founders or existing investors with no money raised. be poured into business. The US$300 million secondary transaction as part of 1Password’s US$620 million Series C transaction was excluded, along with some known PE transactions (Hydrostor), venture capital transactions by companies foreign HQ with Canadian subsidiaries (Shoplazza, Ventus).

In light of the war UkraineIt is to highlight that $14 million was invested by Russian entities in Canadian companies in the first quarter of 2022. Russia Severstal, controlled by oligarch Alexey Mordashov (who was sanctioned by the European Union), invested in Ekona Power as part of $79 million financing which closed in November 2021 and January 2022. This financing round was led by Baker Hughes and included participation from BDC, among others.

U.S. and foreign venture capital firms led all types of investors, investing $1,282 million and $456 million respectively in Canadian companies. Canadian venture capital firms ranked third with $303 million.

Regional distribution of American and foreign investments
US and foreign investments accounted for more than 50% of total disbursements in all regions except the Atlantic region.

Ontario attracted the largest share (83%) of US and foreign investment. The Atlantic region attracted the least (17%).

Q1 2022 venture capital 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.

Disbursements Q1 2022 ($3,371 million) increased by 13% compared to Q1 2021 ($2,985 million) although the number of financings (145) is down 32% compared to Q1 2021 (212).

provinces
Ontario led all the provinces to obtain $1,340 million out of 47 financings. Quebec and BC raised $989 million and $547 million respectively.

alberta and Saskatchewan gathered the best provinces with more than $100 million investments with $336 million and $109 million respectively.

Municipal towns
Companies from 25 cities have raised venture capital funds. The top 8 cities with $50 million or more investments have been Toronto, Montreal, Vancouver, Calgary, Waterloo, Saskatoon, Mississauga, Kitcheneraccounting together and collectively $3,232 million i.e. 96% of total disbursements in Q1 2022.

City of Toronto was the only one $1 billion plus the beneficiary city.

Sectors
ICT companies continued to attract the lion’s share of venture capital investments, $2,119 million i.e. 63% of the total amount.

Clean technology2 companies raised $477 million become the second most active sector ahead of finance and biotech.

Biotechnology has raised $268 millionbeing relegated from the usual 2n/a place in 4th place. Note that Ventus3‘ WE $140 million funding was ruled out because the money went to Waltham, MA parent company based, and not to the Montreal subsidiary based.

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2

CPE Analytics has reclassified and included advanced agro-tech as cleantech.

3

https://privatecapitaljournal.com/ventus-therapeutics-secures-us-140m-series-c-led-by-softbank-vision-fund-2-and-ra-capital/

Steps
Early-stage and growth/late-stage financings led in total disbursements, raising $2,227 million and $821 million respectively.

Seed/pre-seed funding raised $79 million 25 financings representing 17% of the total number of financings.

size of the company
Companies with 0-49, 50-99, 100-400 and 500+ employees raised $2,046 million, $220 million, $703 millionand $401 million respectively.

2022 Q1 VC fundraising (money raised by Canadian VC funds to invest in Canadian and US/foreign companies)

8 Canadian venture capital funds, including 6 private, 1 social impact and 1 corporate fund, have raised $555 million in the first quarter of 2022.

Q1 2022 Venture Capital Law Firms
18 well-known law firms acted as legal advisers in various capacities for companies or investors.

The top six law firms active in venture capital were OslerHoskin & Harcourt LLP, Fasken Martineau DuMoulin LLP, Borden Ladner Gervais LLP, LaBarge Weinstein LLP, Bennet Jones LLP and Cox Palmer.

“A continuing trend in the first quarter of 2022 that has been noticeable since 2019 is the dominance of venture capital funding provided by U.S. investors. Some observers may see this as evidence of from Canada success in attracting foreign investment, while others might conclude that this points to a continuing risk factor for Canada’s innovation economy if this source of funding suddenly evaporates, as has happened during downturns precedents,” commented Richard Rémillard, President of Rémillard Consulting Group (RCG). “The data also reveals that 76% of disbursements went to Toronto, Montreal and Vancouver alone with the vast majority of the rest of the country receiving little or no VC infusions, a situation that is full of implications for regional economic development and for the quality of the transition to the innovation economy. »

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

Methodology
Included

  • Equity and quasi-equity investments directly in companies.

Excluded

  • Secondary transactions (investor/shareholder exit events) in which companies did not receive money
  • I/O Operations
  • Financing by companies headquartered abroad with Canadian subsidiaries.

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

CPE analysis
With over 63,300 financing transactions and 85,900 data points overall financing.ca database, CPE Analytics is from Canada leader of all providers of financial information. We provide complete, verified and unbiased information and unrivaled information and intelligence on private and public financings, initial public offerings (IPOs), mergers and acquisitions, fundraising activities of professional investment firms .

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

CPE Media & Data Company
Founded by from Canada the most experienced experts in raising private capital and financing, CPE Media & Data Company is from Canada leader in all financing information and intelligence provider. More information: https://cpecompany.ca/

SOURCE CPE Media Inc.

For further information: Ted Liu, President and CEO, CPE Media & Data Company, 647-782-8818, [email protected]

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