TLDR:
- Canadian VC fundraising in 2023 was the lowest since 2019, with only $1.72 billion raised by VC funds.
- US and international investors contributed over 50% of the total amount raised, with Ontario investors accounting for 19%.
Article Summary:
Canadian venture capital (VC) fundraising in 2023 hit a record low since 2019, with only $1.72 billion raised by VC funds, marking a 37% decrease from 2022. US and international investors played a significant role, contributing over 50% of the total amount raised. Ontario investors accounted for 19% of the total amount raised. The top five funding sources included investors from Quebec, Europe, and British Columbia. Private VC and Corporate VC investors from both Canada and the US contributed significantly, with US Private VC leading all individual investor types. In terms of disbursements, companies from Ontario, Quebec, BC, Alberta, and Nova Scotia raised the most funds. Startups in ICT, Cleantech, and Biotech sectors raised substantial amounts. Early and growth-stage financings dominated, with Seed/Pre-Seed stage financings also seeing some activity. Companies with 0-49 employees raised 54% of the total amount. The report highlights that 42 Canadian VC funds raised $1.72 billion in aggregate, marking the worst fundraising by Canadian VC funds since 2019. The industry continues to be dominated by US and foreign sources of capital, with concerns raised about the lack of interest in the venture asset class by corporate Canada. The report also mentions a decline in clean tech’s relative contribution to overall investments and provides insights into average funding round sizes and industry fundraising trends.
