Thomson Reuter‘s latest report on the venture capital industry of Canada states that deal-making jumped up by 55 percent during the first quarter of 2013. The upswing in investments from venture capitalists reached a total of $460 million for the time period. The clean technology sector was out in front with $180 million or 39% of total VC input. Information Technology came in second with $143 million. Another interesting piece of data that he report revealed was that the same time period also saw a rise in Venture Capital exits. Thomson Reuters statistics also highlighted the fact that VC investors are putting up more money during the recent time period when compared to last year. In the first quarter of 2012, VC’s funded each company an average of $2.5 million which has now risen to $3.4 million per company.
The report also says that Canada is fairing better in the sector than its Southern neighbor. Thomson Reuters claims that US Venture Capital market activity was “somewhat slower” for the Q1 of 2013 with a 6% drop from a year ago.
As far as activity with in Canada is concerned, Ontario and Quebec lead in front of other states. Quebec had the largest chunk of deal from VC firms with 49% for the first quarter with a $226 million total. Ontario totaled $133 million in VC funding which was 16% of the total.
Thomson Reuters also reports that, “Both domestic and foreign VC funds were more active in the Canadian market in the first quarter of 2013.” TechVibes states that, “Canadian funds invested a combined $364 million in Q1 2013, up 66% from the the same time in 2012. American and other foreign VC funds brought 24% more than the $78 million they invested in Q1 2012. However, because of the even larger increase in Canadian fund activity, foreign funds accounted for a relatively sub-par 21% of total dollars invested in Q1 2013.”
The rapid pace of VC activity in Canada is a positive sign of the innovative start up sector. If the country wishes to stay on front of the world technology curve its needs to invest more in fledgling companies to help them compete commercially. Government spending and patronage has also helped the industry along with major support from private groups that have setup up business incubators and other programs. University have also played a major role by providing top notch education along with entrepreneurship classes.
Source: TechVibes
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