Canada’s enterprise market isn’t immune from the worldwide market downturn, however in contrast to the U.S. — the place all the things seems increasingly bleak — there are fairly just a few vivid spots in Canada’s ecosystem this yr.
Knowledge from the Canadian Enterprise Capital and Non-public Fairness Affiliation (CVCA) discovered that C$7.2 billion ($5.28 billion) was invested throughout 520 offers within the nation by the third quarter of this yr. This compares to C$15 billion deployed by 786 offers in 2021 (extra on Canada’s final yr here). By Q3, the Canadian market had already surpassed its 2020 numbers. It’s additionally value noting that, in contrast to within the U.S., the fourth quarter shouldn’t be the slowest funding interval every year in Canada.
Quite a lot of current Canadian enterprise funding has been concentrated within the early stages. Up to now this yr, 88% of the identified enterprise offers in Canada have been seed or early stage, in comparison with 67% within the U.S., in keeping with PitchBook.
CVCA’s supervisor of analysis and product, David Kornacki, stated that regardless of the funding totals being decrease than final yr, there have been plenty of indicators this yr that the Canadian enterprise market is rising nearer to maturity. For one, he thinks the proliferation of seed offers will create a superb pipeline of later-stage alternatives within the area in just a few years, one thing Canada has struggled with.
