Canada’s Venture Capital Industry Sees Record Growth in 2019

The Canadian venture capital sector soared to new heights in 2019, with a record $6.2 billion invested over 539 deals. The sector experienced its biggest year since 2000 (adjusted for inflation), with an average deal size of nearly $11.6 million, nearly doubling from the year prior. According to the Canadian Venture Capital and Private Equity Association (CVCA), venture capital investment increased by 69% year-over-year, up from $3.7 billion in 2018. The technology sector continues to lead this growth, with Canadian information and communication technology companies receiving 66% of total venture capital dollars (representing $4.1 billion) invested in 2019, almost double the amount invested in 2018.

The bulk of deal flow (39%) occurred in Ontario, with $2.4 billion invested over 199 deals. Of that, $1.8 billion was invested in Toronto. The CVCA also reported that 2019 saw 40 exits of venture capital-backed companies, including IPOs, worth a combined $3 billion.

“The performance of venture capital investment in 2019 is beyond positive and an indication of sustained confidence in the Canadian ecosystem,” said Kim Furlong, Chief Executive Officer, CVCA. “Canadian entrepreneurs have continued to aggressively grow their companies and Canadian VCs are helping push Canadian innovation forward.”

Author: Dani Palter