TLDR:
- Calgary ranks second in national venture capital flow, with $455 million invested across 37 deals.
- Majority of venture capital in Canada comes from foreign investment, with public sector financing outpacing private investment.
Venture capital investment is thriving in Alberta, with Calgary securing the second spot in national rankings for the most venture capital flow in the first half of 2024. The region attracted $455 million across 37 deals, narrowly beating Montreal’s $440 million across 31 deals. However, a report on financings revealed concerns about the dominance of foreign investment in Canada’s venture capital landscape, particularly from the U.S. Public sector financing within Canada is also surpassing private investment, leading to worries about economic sustainability.
Despite the overall strength of venture capital flow in Canada, there are issues with the reliance on foreign capital and the imbalance between public and private sector investments. Richard Rémillard, President of Rémillard Consulting Group, warns that the private VC fund industry in Canada is akin to a quasi-government entity. The government remains the top Canadian VC, underscoring the need for a more balanced and sustainable investment environment.
CPE Analytics’ report identified more than 350 deals across Canada in the first half of 2024, highlighting the ongoing interest and activity in the venture capital scene. However, the need for a strategic and sustainable approach to venture capital investment, with a focus on fostering domestic private investment and reducing reliance on foreign funding, remains a key challenge for the Canadian tech ecosystem.
