Canada’s Venture Capital Market in Q3 2012...Deal-making in Canada’s venture capital (VC) market...

Canada’s Venture Capital Market in Q3 2012Canada’s Venture Capital Market in Q3 2012

Prepared by Thomson Reuters for the Canadian Venture Capital & Private Equity Association

Canada’s VC Market in Q3 2012 3‐5$ Invested and # Companies Financed 6‐7North American Context 8 12North American Context 8‐12Domestic vs. Foreign Investment 13‐16Deal Sizes & Types of Companies Funded 17‐21Investment Stages 22‐23Top (Disclosed) Deals 24Geographical Distribution of Investment 25‐27Geographical Distribution of Investment 25‐27VC Funds Raised 28‐32IPO and M&A Exits 33

Table of ContentsTable of Contents

Thomson Reuters2

Canadian VC market trendsCanadian VC market trends

Deal-making in Canada’s venture capital (VC) market slowed moderately in the third quarter of 2012, reported Thomson Reuters, as$363 million was invested in total, down 6% from $385 million invested at the same time in 2011. Disbursement levels in Q3 2012were also 18% below the $444 million invested three months earlier, when Canadian VC market activity instead exhibitedsubstantial year-over-year growth.

There were also fewer Canadian-based innovative companies in receipt of VC financing between July and September CompaniesThere were also fewer Canadian based innovative companies in receipt of VC financing between July and September. Companiesfinanced in this period totaled 87, reduced 33% from the 129 companies financed at the same time last year. The number of VC-backed firms in Q3 2012 was also 36% lower than in Q2 2012.

As a result, Canadian VC market activity in the first nine months of 2012 continued to track somewhat behind activity during thesame nine-month period in 2011. The number of companies financed to date this year, totaling 304, approximates the numberrecorded the year before, however, dollars invested, totaling $1.1 billion as of September 30th, is down a slight 3% over the sametimeframetimeframe.

Q3 2012 was notable for several major deals VC done in Canada. These included the $80 million financing of Kitchener-Waterloo’sDesire2Learn, Inc. – which represents the largest Canadian VC investment in five years, and the largest VC investment in aCanadian software firm in over a decade, according to Thomson Reuters. Other important deals included the US$35 million financingof Thrasos Innovation, Inc., of Montréal , and the $20 million financing of Vision Critical Communications, Inc., of Vancouver.

These and other transactions helped to ratchet up dollars invested per Canadian firm on average between July and September TheThese and other transactions helped to ratchet up dollars invested per Canadian firm on average between July and September. Thesize of company financings averaged $4.2 million in this period, up from $3.0 million one year ago, and from $2.5 million in Q32010.

However, larger-sized VC financings in the third quarter did not help to narrow the on-going deal capitalization gap between Canadaand the United States. In the first nine months of the year, Canadian innovative firms continued to garner only 43% of the dollarsgoing to American firms, a share that remains unchanged from 2011.

While Canadian VC funds were less engaged in international deal-making in Q3 2012, activity over the first nine months improved ontrends of the year before. At the end of September, domestic investors had deployed a total of $132 million to companies located inother countries, up 14% from the same time in 2011.

Trends in the US VC market

Like the Canadian market, levels of VC activity in the American market were reduced in the third quarter of 2012. A total of US$6.4


Like the Canadian market, levels of VC activity in the American market were reduced in the third quarter of 2012. A total of US$6.4billion was invested in 890 companies in the United States in this period, or 12% below the US$7.3 billion invested in Q3 2011. Inthe first nine months, dollars invested south-of-the-border were also down 9% year over year.

Thomson Reuters3

Canadian VC trends by regionCanadian VC trends by region

The moderated pace of Canadian VC market activity in the third quarter of 2012 was apparent in the majority of provinces andregions. One key exception was Ontario which instead saw substantial expansion in dollar flows, primarily because of theDesire2Learn financing. A total of $173 million was invested in Ontario in Q3 2012, up 32% from $131 million invested the yearbefore, and giving the province 48% of all disbursements.

Québec took second spot in this period accounting for a 31% share of the Canadian market overall Levels of VC activity in QuébecQuébec took second spot in this period, accounting for a 31% share of the Canadian market overall. Levels of VC activity in Québecnonetheless registered a slight 2% decrease on a year-over-year basis, from $114 million invested in the third of quarter of 2011 to$112 million invested this time around.

Deal-making activity in British Columbia was also reduced, with $43 million invested between July and September, down 33% fromthe $65 million that was invested in the province at the same time last year. Disbursement levels in Alberta also fell year over year,with $16 million invested in Q3 2012, or effectively half of the $32 million invested previously.

Canadian VC trends by investor type

In the third quarter of 2012, the activity of Canadian VC funds mostly declined in parallel with the market in aggregate. Led byprivate-independent and institutional VC funds in this period, domestic investors put a combined $269 million to work in innovativefirms in Canada, which is 6% shy of the $285 million they accounted for one year ago.

American and other foreign VC funds were also less active in the Canadian market between July and September, bringing $94 milliong y p , g g $to deals, which is down 7% from the $101 million they contributed at the same time last year. Consequently, foreign fundsaccounted for 26% of total dollars invested in Q3 2012, which is off from their nearly one-third share held during the entire of 2011.

Canadian VC trends by sector

Canadian deal-making in the third quarter of 2012 was driven in information technology (IT) and life sciences sectors. A total of 43IT companies obtained $208 million in this period, or 57% of all disbursements, and up 14% from $183 million invested the yearbefore. Most of this growth was accounted for by Desire2Learn and 19 other software firms, which attracted $130 million, thoughcommunications and semiconductor firms also saw year-over-year gains.

VC market activity in biopharmaceuticals, healthcare and other life sciences sectors was also increased between July and September,as Thrasos Innovation and 13 other companies captured $95 million in total, up 3% from the $93 million invested in Q3 2011. Thisresulted in life sciences activity accounting for 26% of total dollars invested this time around.


Thomson Reuters4

In contrast deal-making in Canadian clean technology sectors lost ground for a third consecutive quarter in Q3 2012 with a total ofIn contrast, deal-making in Canadian clean technology sectors lost ground for a third consecutive quarter in Q3 2012, with a total of$14 million going to two companies. This level of activity is at some distance from the $43 million invested in these sectors at thesame time last year. On the other hand, VC activity in consumer-related and other traditional sectors edged up 7% over the sameperiod, from $41 million invested in Q3 2011 to $44 million invested in Q3 2012, benefiting 28 companies in total.

Trends in Canadian VC-Backed Exits

Exit activity in Canada’s VC market has had momentum throughout 2012 This is evidenced in market outcomes for the first nineExit activity in Canada s VC market has had momentum throughout 2012. This is evidenced in market outcomes for the first ninemonths of 2012, which saw VC fund realizations of Canadian-based portfolio holdings totaling 26, which approaches the 28 fundrealizations recorded during the whole of 2011. Exit trends remained heavily influenced by strategic sales, despite the closing of amajor VC-backed initial public offering (IPO) in Q3 2012.

In August, it was announced that Toronto’s Eloqua, Inc., had successfully gone public on NASDAQ, with an initial offering of US$106million – the largest IPO in two years. Other high-profile liquidity events between July and September included the acquisition ofHalifax based GoInstant Inc by Salesforce com Inc a transaction priced at US$70 millionHalifax-based GoInstant, Inc., by Salesforce.com, Inc., a transaction priced at US$70 million.

Trends in Canadian VC Fund-Raising

In contrast with the first and second quarters of 2012, when levels of Canadian VC fund-raising were increased considerably yearover year, activity in the third quarter slowed to a crawl. New capital commitments to domestic VC funds totaled $42 million in thisperiod, or a mere fraction of the $365 million committed to funds at the same time in 2011.

However, due to more robust trends earlier in the year, Canadian fund-raising activity in the first nine months of 2012 continued totrack well ahead of activity during the same nine-month period in 2011. As of September 30th, new commitments to VC fundstotaled $1.5 billion, which already exceeds the $1.0 billion reported by Thomson Reuters for the entire of 2011.

Twenty-one first and final closings of Canadian VC partnerships have played an essential role in bringing new supply into themarket, accounting for 79% of the year-to-date fund-raising total, or $1.2 billion. New commitments to retail funds accounted formost of the balance or $364 millionmost of the balance, or $364 million.

Trends in US VC Fund-Raising

VC fund-raising in the United States gained strength in Q3 2012, with a total of US$5.0 billion brought into the market, or betterthan double the US$2.2 billion raised at the same time last year. However, over the first nine months of 2012, new commitments toAmerican VC funds have been lagging trends in 2011, with a total of US$16.2 billion committed to date.


Thomson Reuters5

$375 $444250 $500

$386$375

$291$444

$363

200

$350

$400

$450

of

$CAD

of

$CAD

100

150

$200

$250

$300

$350

s: M

illio

ns

o

of

Dea

ls

s: M

illio

ns

o

of

Dea

ls

50

100

$100

$150

$200

Dea

l Val

ues #

Dea

l Val

ues #

0 $0

$50

4'0

8

1'0

9

2'0

9

3'0

9

4'0

9

1'1

0

2'1

0

3'1

0

4'1

0

1'1

1

2'1

1

3'1

1

4'1

1

1'1

2

2'1

2

3'1

2

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Total Deal Values # of Deals

Venture Capital Invested in Canada Slows Moderately in Q3 2012Venture Capital Invested in Canada Slows Moderately in Q3 2012DOLLARS INVESTED & COMPANIES FINANCEDDOLLARS INVESTED & COMPANIES FINANCED

Thomson Reuters6

250$400

200$300

$350

of

$CAD

of

$CAD

100

150

$200

$250

s: M

illio

ns

o

of

Dea

ls

s: M

illio

ns

o

of

Dea

ls

50

100

$50

$100

$150

Dea

l Val

ues #

Dea

l Val

ue s #

0$0

$50

Q4'0

8

Q1'0

9

Q2'0

9

Q3'0

9

Q4'0

9

Q1'1

0

Q2'1

0

Q3'1

0

Q4'1

0

Q1'1

1

Q2'1

1

Q3'1

1

Q4'1

1

Q1'1

2

Q2'1

2

Q3'1

2

Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q

Total Deal Values # of Deals

However, Dollar Flows Still Trending Higher in Recent QuartersHowever, Dollar Flows Still Trending Higher in Recent QuartersDOLLARS INVESTED & COMPANIES FINANCEDDOLLARS INVESTED & COMPANIES FINANCEDFOUR QUARTER ROLLINGFOUR QUARTER ROLLING AVERAGESAVERAGES

Thomson Reuters7

$198$238

$548$821

$4,283

OntarioWashington

New YorkMassachusetts

California

$181$210

$455$757

$3,301

ColoradoPennsylvania

New YorkMassachusetts

California

$ 02$164$166$170$183

$198

Q ébVirginia

ColoradoIllinoisTexas

Ontario

$ 38$149$154$157$173$181

TIllinois

WashingtonMaryland

OntarioColorado

$86$96$96$102$102

British ColumbiaNew Jersey

FloridaPennsylvania

Québec

$84$95$112$114$138

MinnesotaGeorgiaQuébec

MichiganTexas

$41$48$52$56$83

North CarolinaMinnesota

OhioGeorgia

Utah

$43$54$55$57$77

British ColumbiaNorth Carolina

OhioUtah

New Jersey

$31$41

Wisconsino Ca o a

$41$ 3

Virginia

Q3 2012 Q2 2012

North American Venture Capital Investment RankingsNorth American Venture Capital Investment RankingsVENTURE CAPITAL DISBURSEMENTS BY PROVINCEVENTURE CAPITAL DISBURSEMENTS BY PROVINCE AND STATEAND STATEONTARIO,ONTARIO, QUÉBECQUÉBEC, BRITISH COLUMBIA, BRITISH COLUMBIA FINISHFINISH Q3 IN 6Q3 IN 6thth, 12, 12th th & 19& 19thth PLACEPLACE

Thomson Reuters8

$40

$30

$35

$40Bill

ions)

$20

$25

$

ed (

CAD

$ B

$10

$15

ount

Inve

ste

$0

$5

2007 2008 2009 2010 2011 2012

Am

o

2007 2008 2009 2010 2011 2012 Annualized

USA Canada X 10

YTD 2012, North American Disbursement Levels Lagging 2011YTD 2012, North American Disbursement Levels Lagging 2011VENTURE CAPITAL DISBURSEMENTS:VENTURE CAPITAL DISBURSEMENTS: CANADA & THE UNITED STATESCANADA & THE UNITED STATES

Thomson Reuters9

4,500

3,500

4,000

4,500ce

d

2 000

2,500

3,000

anie

s Fi

nan

1,000

1,500

2,000

# o

f Com

pa

0

500

2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Annualized

USA Canada X 10

Relative to US, More VCRelative to US, More VC‐‐Backed Firms in CanadaBacked Firms in CanadaNUMBER OF COMPANIES FUNDED: CANADA & UNITED STATESNUMBER OF COMPANIES FUNDED: CANADA & UNITED STATES

Thomson ReutersThomson Reuters10

$12 0)

$10.0

$12.0D

$ M

illio

ns

$6.0

$8.0

vest

ed (

CAD

$4.0

Am

ount

Inv

$0.0

$2.0

2007 2008 2009 2010 2011 First 9

Ave

rage

2007 2008 2009 2010 2011 First 9 Months 2012USA Canada

CanadianCanadian Firms Take 43% of Venture Capital Invested in US FirmsFirms Take 43% of Venture Capital Invested in US FirmsAMOUNTS INVESTED PER COMPANY,AMOUNTS INVESTED PER COMPANY, CANADA & UNITED STATESCANADA & UNITED STATES

Thomson Reuters11

$6 0)

$5.0

$6.0D

$ M

illio

ns

$3.0

$4.0

vest

ed (

CAD

$2.0

Am

ount

Inv

$0.0

$1.0

2007 2008 2009 2010 2011 First 9

Ave

rage

2007 2008 2009 2010 2011 First 9 Months 2012Foreign Investors Domestic Investors

US Funds Make Larger Investments Than Canadian FundsUS Funds Make Larger Investments Than Canadian FundsAVERAGE INVESTMENT SIZES IN CANADIAN COMPANIESAVERAGE INVESTMENT SIZES IN CANADIAN COMPANIESDOMESTIC INVESTORS VS. FOREIGN INVESTORSDOMESTIC INVESTORS VS. FOREIGN INVESTORS

Thomson Reuters12

100%

80%

90%

50%

60%

70%

20%

30%

40%

0%

10%

20%

2007 2008 2009 2010 2011 20122007 2008 2009 2010 2011 2012Corporate Government InstitutionalRetail Private Independent ForeignOther

Foreign, Private & Institutional Venture Capital Funds Leading TrendsForeign, Private & Institutional Venture Capital Funds Leading TrendsSHARE OF DOLLARS INVESTED BY INVESTOR TYPESHARE OF DOLLARS INVESTED BY INVESTOR TYPE

Thomson Reuters13

120 $900

100 $700

$800

$CAD

$491 63

60

80

$ 00

$500

$600

Mill

ions

of

of

Dea

ls

$283 40

$200

$300

$400

Dea

l Val

ues

:

# o

0

20

$0

$100

$

2007 2008 2009 2010 2011 Fi t 9

D

$$

2007 2008 2009 2010 2011 First 9 Months 2012Total Deal Values # of Deals

YTD 2012, Foreign Funds Invest $283M In Canadian CompaniesYTD 2012, Foreign Funds Invest $283M In Canadian CompaniesFOREIGN INVESTORS, CANADIAN PORTFOLIO COMPANIESFOREIGN INVESTORS, CANADIAN PORTFOLIO COMPANIESDOLLARS INVESTED & NUMBER OF FINANCINGS DOLLARS INVESTED & NUMBER OF FINANCINGS

Thomson Reuters14

90 $300

$23263 70

80 $250

$CAD

$13240

50

60

$150

$200

Mill

ions

of

f D

eals

20

30

40

$100

eal Val

ues

:

# o

0

10

$0

$50

2007 2008 2009 2010 2011 Fi t 9

D


$$YTD 2012, Canadian Funds Invest $YTD 2012, Canadian Funds Invest $132132M in NonM in Non‐‐ResidentResident FirmsFirmsCANADIAN INVESTORS, FOREIGN PORTFOLIO COMPANIESCANADIAN INVESTORS, FOREIGN PORTFOLIO COMPANIESDOLLARS INVESTED & NUMBER OF FINANCINGSDOLLARS INVESTED & NUMBER OF FINANCINGS

Thomson Reuters15

$1 400

$1 000

$1,200

$1,400M

illio

ns)

$800

$1,000

ted (

CAD

$

$400

$600

ount

Inve

st

$0

$200

2007 2008 2009 2010 2011 2012

Am

o

2007 2008 2009 2010 2011 2012 Annualized

Investment Abroad Domestic Investment

Canadian Venture Capital Funds Mostly Invest at HomeCanadian Venture Capital Funds Mostly Invest at HomeCANADIAN INVESTMENT WITHIN CANADA VS. CANADIAN INVESTMENT OUTSIDE CANADACANADIAN INVESTMENT WITHIN CANADA VS. CANADIAN INVESTMENT OUTSIDE CANADA


250 $1,200

157

200 $1,000

f $CAD

$583

157

150

$600

$800

s: M

illio

ns

of

of

Dea

ls

50

100

$200

$400

Dea

l Val

ues # o

0 $0

$200

2007 2008 2009 2010 2011 First 9

D

$$


In First 9 Months, Information Technology Sectors Attract $583 M In First 9 Months, Information Technology Sectors Attract $583 M INFORMATION TECHNOLOGY SECTORSINFORMATION TECHNOLOGY SECTORSDOLLARS INVESTED & NUMBER OF FINANCINGSDOLLARS INVESTED & NUMBER OF FINANCINGS

Thomson Reuters17

100 $700

63 70

80

90

$500

$600

f $CAD

$281

63

50

60

70

$300

$400

$

s: M

illio

ns

of

of

Dea

ls

$281

20

30

40

$200

$300

Dea

l Val

ues # o

0

10

$0

$100

2007 2008 2009 2010 2011 First 9

D

$$


In First 9 Months, Life Sciences Sectors Garner $281 MIn First 9 Months, Life Sciences Sectors Garner $281 MLIFE SCIENCES SECTORSLIFE SCIENCES SECTORSDOLLARS INVESTED & NUMBER OF FINANCINGS DOLLARS INVESTED & NUMBER OF FINANCINGS


60 $300

50 $250

f $CAD

30

40

$150

$200

s: M

illio

ns

of

of

Dea

ls

$65

21

10

20

$50

$100

Dea

l Val

ues # o

0

10

$0

$50

2007 2008 2009 2010 2011 First 9

D

$$


In First 9 Months, Clean Technology Sectors Capture $65MIn First 9 Months, Clean Technology Sectors Capture $65MCLEAN TECHNOLOGY SECTORSCLEAN TECHNOLOGY SECTORSDOLLARS INVESTED & NUMBER OF FINANCINGS DOLLARS INVESTED & NUMBER OF FINANCINGS

Thomson ReutersThomson ReutersThomson Reuters19

200 $250

$169 140

160

180

$200

f $CAD

$169

101 100

120

140

$150

s: M

illio

ns

of

of

Dea

ls

101

40

60

80

$50

$100

Dea

l Val

ues #

0

20

$0

2007 2008 2009 2010 2011 First 9

D

$$


In First 9 Months, NonIn First 9 Months, Non‐‐Technology Sectors Secure $169MTechnology Sectors Secure $169MTRADITIONAL SECTORSTRADITIONAL SECTORSDOLLARS INVESTED & NUMBER OF FINANCINGS DOLLARS INVESTED & NUMBER OF FINANCINGS


$10s)

$8

$AD

$ M

illio

ns

$4

$6

nve

sted

(CA

$2

e Am

ount

In

$02007 2008 2009 2010 2011 First 9

Months 2012

I f ti T h l Lif S i

Ave

rage

2012Information Technology Life Sciences

Cleantech Traditional

Technology Financing Sizes Steady, Excepting Technology Financing Sizes Steady, Excepting Clean TechnologyClean TechnologyAVERAGE AMOUNT INVESTED PER COMPANY, BY SECTORAVERAGE AMOUNT INVESTED PER COMPANY, BY SECTOR


1 000

700

800

900

1,000nts

500

600

700

d I

nve

stm

en

200

300

400

# o

f Fu

nd

0

100

2007 2008 2009 2010 2011 First 9 00 008 009 0 0 0 st 9Months 2012New Follow-On

FirstFirst‐‐Time DealTime Deal‐‐Making Receives More Focus in 2012Making Receives More Focus in 2012# OF FUND INVESTMENTS, NEW VS. FOLLOW# OF FUND INVESTMENTS, NEW VS. FOLLOW‐‐ONON


700

600

700nts

400

500

d I

nve

stm

en

200

300

# o

f Fu

nd

0

100

2007 2008 2009 2010 2011 First 9 2007 2008 2009 2010 2011 First 9 Months 2012Early Stage Late Stage

Later Stage Firms Attract More Funding Than Early Stage OnesLater Stage Firms Attract More Funding Than Early Stage Ones# OF FUND INVESTMENTS, EARLY VS. LATE STAGES# OF FUND INVESTMENTS, EARLY VS. LATE STAGES

Thomson ReutersThomson ReutersThomson ReutersThomson Reuters23

Company Prov. Value ($MM)

Disclosed Investors($MM)

Desire2Learn, Inc. ON $80.0 New Enterprise Associates, OMERS Ventures

Thrasos Innovation, Inc. QC US$35.0 Advanced Technology Ventures, Fonds de solidarité des travailleurs du Québec (FTQ), GSK Canada Life Sciences Innovation Fund, Lumira Capital Corp., MP H l h V M MP Healthcare Venture Management, Pappas Ventures, SR One, SW Co.

Vision Critical BC $20.0 OMERS Ventures

Communications, Inc.

Enviro-Viridis Development C

QC $12.5 Caisse de dépôt et placement du QuébecCorporation Québec

Hopper, Inc. QC $12.0 Atlas Ventures, Brightspark Ventures, OMERS Ventures

Top Canadian VC Deals (Disclosed) In Q3 2012Top Canadian VC Deals (Disclosed) In Q3 2012DEAL VALUES IN MILLIONS OF CANADIAN DOLLARSDEAL VALUES IN MILLIONS OF CANADIAN DOLLARS

Thomson Reuters24

Q2 2012: $444 MillionQ3 2012: $363 Million

19%

4%12%

1%


19%

2%

7%

23%4%

4%31%

7%

48%45%

British Columbia Alberta

48%

British Columbia AlbertaManitoba-Saskatchewan OntarioQuébec Atlantic Canada

Ontario Accounts for Almost Half of Disbursements in Q3 2012Ontario Accounts for Almost Half of Disbursements in Q3 2012VC DOLLARS INVESTED BY REGION, Q3 2012 & Q2 2012VC DOLLARS INVESTED BY REGION, Q3 2012 & Q2 2012

Thomson Reuters25


19%11%

18%


30%

1%2%

2%

24%

13%

13%

12%

25%

20%

Toronto Montreal VancouverOtt Q éb Cit C l

7%

2%1%

Ottawa Québec City CalgaryKitchener- Waterloo Other

KitchenerKitchener‐‐Waterloo Sees Gains In Q3 2012, Led By Desire2LearnWaterloo Sees Gains In Q3 2012, Led By Desire2LearnVC DOLLARS INVESTED BY MAJOR URBAN CENTRE, Q3 2012 & Q2 2012VC DOLLARS INVESTED BY MAJOR URBAN CENTRE, Q3 2012 & Q2 2012


$1 200

$1,000

$1,200$ C

AD

$600

$800

Mill

ions

of

$200

$400

eal Val

ues

:

$0

$200

2007 2008 2009 2010 2011 First 9

D

00 008 009 0 0 0 st 9Months 2012

Ontario Québec Rest of Canada

Ontario Leads Québec In DealOntario Leads Québec In Deal‐‐Making To DateMaking To DateDOLLARS INVESTED IN ONTARIO, QUÉBECDOLLARS INVESTED IN ONTARIO, QUÉBEC

Thomson ReutersThomson ReutersThomson ReutersThomson ReutersThomson Reuters27

$228

$365

Q4 2011

Q3 2011

$762Q1 2012

$42

$684

Q3 2012

Q2 2012

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900

Individuals Corporations Fund of Funds GovernmentIndividuals Corporations Fund of Funds Government

Pensions Foreign Other

YTD 2012, New Commitments to Canadian Funds Total $1.5 BillionYTD 2012, New Commitments to Canadian Funds Total $1.5 BillionVENTURE CAPITAL FUNDVENTURE CAPITAL FUND‐‐RAISING BY QUARTER, BY SOURCE RAISING BY QUARTER, BY SOURCE

Thomson Reuters28

$5 000

100

$3 500

$4,000

$4,500

$5,000f

$ C

AD

89

$3,

$2,6

14

1,8

69

00 1,8

46

653$2,500

$3,000

$3,500

d:

Mill

ions

o

$889

$1,0

35

$1,0

77

$1,0

07

$1,0

53

$1,4

8

$1

$1,4

0 $1

$1,6

$1,000

$1,500

$2,000

unds

Rai

sed

$0

$500

2007 2008 2009 2010 2011 First 9

Fu

Months 2012

Canada USA X 0.10

However, Canadian Venture Capital FundHowever, Canadian Venture Capital Fund‐‐Raising Still Lags US ActivityRaising Still Lags US ActivityNEW CAPITAL COMMITMENTS BY NATIONNEW CAPITAL COMMITMENTS BY NATION

Thomson ReutersThomson ReutersThomson ReutersThomson ReutersThomson ReutersThomson Reuters29

12

10

12

6

8

2

4

0

2

<$30 MM $30 -$100 MM >$100 MM$30 $30 $ 00 $ 00

Smaller Venture Capital Partnerships Lead FundSmaller Venture Capital Partnerships Lead Fund‐‐Raising Trends Raising Trends NUMBER OF CLOSINGS OF PRIVATE INDEPENDENT FUNDS, FIRST NINE MONTHS 2012NUMBER OF CLOSINGS OF PRIVATE INDEPENDENT FUNDS, FIRST NINE MONTHS 2012


81$1 400

$1,1

8

$1 000

$1,200

$1,400f

$ C

AD

$719

$597

0 5$600

$800

$1,000

d:

Mill

ions

o

$388

$45

$368

$329

$296

$336

$408

$425

$364

$200

$400

$600

unds

Rai

sed

$0

$200

2007 2008 2009 2010 2011 First 9

Fu

Months 2012

Private Independent Funds Retail Funds

TwentyTwenty‐‐One Partnership Closings Account for 79% of Funds RaisedOne Partnership Closings Account for 79% of Funds RaisedNEW CAPITAL COMMITMENTS BY VENTURE CAPITAL FUND TYPENEW CAPITAL COMMITMENTS BY VENTURE CAPITAL FUND TYPE

Thomson ReutersThomson ReutersThomson ReutersThomson ReutersThomson ReutersThomson ReutersThomson Reuters31

$1 000

$766

$700

$800

$900

$1,000f $ C

AD

0 383

358

44

$530

40 385

$410

$552

386

8

$500

$600

$700

: M

illio

ns

of

$310 $ $3

$34

$34 $$

$308

$238

$157

$192

$200

$300

$400

nds

Rai

sed

$0

$100

2008 2009 2010 2011 First 9

Fu

Months 2012

Ontario Québec Rest of Canada

QuébecQuébec‐‐Focused Fund Managers Net 51% of New CommitmentsFocused Fund Managers Net 51% of New CommitmentsNEW CAPITAL COMMITMENTS BY PROVINCENEW CAPITAL COMMITMENTS BY PROVINCE‐‐REGIONREGION


45 $800

33

30

35

40

45

$659

$600

$800

26 25 25

15

20

25

30

$373$400

1 13

15

10

15

$29$72

$106$94 $103

$197$200

02009 2010 2011 First 9

Months 2012

$

$02009 2010 2011 First 9

Months 2012

# of IPO Exits # of M&A Exits

2012

Average IPO Offering SizeAverage M&A Transaction Size

Despite Major IPO in Q3 2012, Exits Dominated by Strategic SalesDespite Major IPO in Q3 2012, Exits Dominated by Strategic SalesEXITS OF CANADIAN VCEXITS OF CANADIAN VC‐‐BACKED PORTFOLIO COMPANIESBACKED PORTFOLIO COMPANIESEXITS LED BY SALE OF MONTREALEXITS LED BY SALE OF MONTREAL‐‐BASED ENOBIA PHARMA FOR $1.080 BILLIONBASED ENOBIA PHARMA FOR $1.080 BILLION

Thomson Reuters33

Thomson Reuters

Date post:	11-Oct-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Canada’s Venture Capital Market in Q3 2012...Deal-making in Canada’s venture capital (VC) market...

Documents