TLDR:
- Only 6% of Canadian public companies with over $1 billion CAD in revenue are actively investing in venture capital compared to 40% in the US.
- Most Canadian Corporate Venture Capital (CVC) investments come from international corporates, with Canadian firms directing investments abroad.
Key Elements:
A recent report by Deloitte Canada’s Deloitte Ventures revealed the following key points:
- There is a significant opportunity for corporate venturing in Canada, but very few domestic companies are currently engaged in active investments.
- Only 6% of Canadian public companies generating over $1 billion CAD in annual revenue are investing in venture capital, in contrast to their counterparts in the United States.
- Canadian corporates involved in venture investing predominantly direct their investments abroad, and most CVC participation in Canadian startups comes from international corporates.
- The report highlights the potential benefits of increased engagement by Canadian companies in venture capital, such as financial gains, strategic insights, exposure to new markets and technologies, and overall economic growth.
- Corporates in sectors where Canada holds a competitive advantage, such as finance, insurance, media, and technology, have been more active in CVC investments than those in sectors like energy and industrial manufacturing.
Analysis:
The report underscores the missed opportunity for Canadian companies to leverage corporate venturing as a strategic tool for innovation, growth, and fostering collaboration between startups and the corporate sector. By increasing CVC participation, Canada’s domestic technology ecosystem could thrive, leading to economic growth and technological advancement.
