2015 Canadian Venture Capital Market Overview

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Annual Trend

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367 433 536

2013 2014 2015

1,897 2,022 2,259

2013 2014 2015

Up 18%from 2013

Up 24%from 2014

Up 12%from 2014

Up 7%from 2013

# Deals $ Millions

Quarterly Trend

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415 340 601 540 358 411 640 613 419 651 615 574

86 82

10297

110

91

110

122

133 137 141

125

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

$ (Millions) Deals (#)

2014 20152013

Activity by Province – 2015

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ON42%

QC31%

BC20%

AB5%

Atlantic2%

$ Share

ON38%

QC31%

BC16%

Atlantic9%

AB3%

SK-MB2%

# Share

Activity by Sectors – 2015

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1,062

272394

14

1,299

479

177

27

1,379

647

13542

ICT Life Sciences Clean Tech AgriBusiness

2013 2014 2015

# Deals $ Millions

235

5439

6

270

79

46

14

325

110

4420

ICT Life Sciences Clean Tech AgriBusiness

2013 2014 2015

ICT Breakdown – 2015

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Internet Software &

Services54%eCommerce

22%

Electronic & Semiconductor

7%

Software (Non Internet/Mobile)

7%

Mobile & Telecommunications

5%

Computer Hardware & Services

4%

$ Share

749M

310M

102M

97M

72M

49M

Internet Software & Services

59%eCommerce16%

Electronic & Semiconductor

9%

Mobile & Telecommunications

8%

Software (Non Internet/Mobile)

5%

Computer Hardware & Services

4%

# Share

192

52

28

25

1612

Activity by Stages – 2015

Page | 7

85

636

931

61133

794 785

88154

1,160

530

129

Seed Early Stage Later Stage Bridge

2013 2014 2015

# Deals $ Millions

107

129

74

27

137

158

78

38

178 178

6478

Seed Early Stage Later Stage Bridge

2013 2014 2015

Exit Trend

Page | 8

665 543

1,343

420

936

1,4571,294

2,957

4,263

M&A IPO** Total*

2013 2014 2015

# Deals $ Millions

22

4

31

25

4

3432

4

41

M&A IPO Total*

2013 2014 2015

2015 TOTAL: 41 exits, $4.3B transaction value*includes transactions with undisclosed values, RTOs and Secondary Sales

** IPO valuation

Top 10 Canadian Deals – 2015

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* PIPE/VC portion of larger private placement/public offering

Company Province Disclosed VC Firm(s) $ MillionsLightspeed POS Inc. Québec Caisse de dépôt et placement du Québec, Investissement Québec, Accel Partners, Teralys, iNovia Capital 79

Clementia Pharmaceuticals Inc. QuébecNew Enterprise Associates (NEA), BDC Capital, EcoR1 Capital, Janus Capital, OrbiMed Advisors, RA Capital, Rock Springs Capital 74

Blockstream Corporation QuébecHorizons Ventures, AXA Strategic Ventures, Digital Garage, Real Ventures, AME Cloud Ventures, BlockchainCapital, Future\Perfect Ventures, Khosla Ventures, Mosaic Ventures, Seven Seas Venture Partners 73

Kik Interactive Inc Ontario Tencent Holdings 66Resverlogix Corp. Alberta Eastern Capital, Shenzhen Hepalink Pharmaceutical Co. 50

Cynapsus Therapeutics Inc.* Ontario Aisling Capital, Dexcel Pharma Technologies, OrbiMed Advisors 40

Telesta Therapeutics Inc.* Québec Consonance Capital, Omega Fund Management, Tavistock Group 37

Influitive Corporation Ontario

Georgian Partners, Atlas Venture, BDC Capital, CommonAngels Ventures, Docomo Capital, First Round Capital, Hummer Winblad Venture Partners, Illuminate Ventures, OurCrowd Management, Relay Ventures, Resolute Ventures 36

Coveo Solutions Inc. Québec BDC Capital, Fonds de solidarité, Investissement Québec, Tandem Expansion Fund, Telesystem 35

Scribble Technologies Inc. OntarioGeorgian Partners, OpenText Enterprise Apps Fund, Emerillon Capital, Blue Cloud Ventures, Northleaf Venture Catalyst Fund, Rogers Ventures, Summerhill Venture Partners, EDC, Waterloo Innovation Fund 35

Most Active VC Firms – 2015

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VC Firms # Total Deals $ Millions*

Real Ventures 78 200

iNovia Capital Inc. 39 507

Relay Ventures 26 180

Cycle Capital Management (CCM) Inc. 15 39

Lumira Capital Investment Management Inc. 13 233

Yaletown Venture Partners 13 64

Pangaea Ventures Ltd. 10 101

Avrio Ventures Management Corp. 10 25

Wellington Financial LP 9 58

Georgian Partners Inc. 8 228

EnerTech Capital 8 66

Private Independent Firms

*Total deal values – includes all participating investors.

Most Active VC Firms – 2015

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VC Firms # Total Deals $ Millions*

Fonds de solidarité FTQ 20 94

OMERS Ventures Management Inc. 8 80

Fondaction CSN 7 6

Difference Capital Financial Inc. 5 32

TELUS Ventures 5 22

Desjardins Venture Capital 5 9

VC Firms # Total Deals $ Millions*

BDC Capital Inc. 75 453

Investissement Québec 30 112

Innovacorp 17 23

MaRS IAF 15 19

New Brunswick Innovation Foundation (NBIF) 12 6

EDC Equity 8 62

Government FundsPension, Retail, Corporate & Other Public Funds

*Total deal values – includes all participating investors.

Most Active Foreign Firms – 2015

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VC Firms# Total Deals

$ Millions*

Horizons Ventures Limited 4 89

ff Asset Management LLC 4 36

OrbiMed Advisors, LLC 3 135

GE Ventures LLC 3 48

Social Starts, LLC 3 15

*Total deal values – includes all participating investors.

Most Active Legal Firms – 2015

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Legal Firms # Total Deals $ Millions*

LaBarge Weinstein LLP 25 182

Gowling Lafleur Henderson LLP 11 164

Osler, Hoskin and Harcourt LLP 10 191

Borden Ladner Gervais LLP 10 30

McCarthy Tétrault LLP 5 47

Cox & Palmer 5 2

Blake, Cassels & Graydon LLP 4 49

Fasken Martineau DuMoulin LLP 3 95

McInnes Cooper 3 3

Top Disclosed Exits – 2015

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VC Backers Company Acquirer $ Millions

Insight Venture Partners, Bessemer Venture Partners, FirstMarkCapital, Georgian Partners, Felicis Ventures, OMERS Ventures, Shopify Inc. IPO 1,604

Vivo Capital, Frazier Healthcare Ventures, OrbiMed Advisors, Adams Street Partners, RA Capital Management ProNAi Therapeutics, Inc IPO 634

Highland Capital Partners Davids Tea Inc. IPO 537

Caisse de dépôt et placement du Québec, EDC Equity, EnerTech Capital, Fonds de solidarité, Groupe W, Samsung Venture, Technovator Distech Controls, Inc. Acuity Brands Inc. 318

McLean Watson Capital, Desjardins Venture Capital, GTI Capital SkyWave Mobile Communications Inc. ORBCOMM, Inc. 204

Extreme Venture Partners, iNovia Capital, Rho Canada Ventures, Metamorphic Ventures , Mantella Venture Partners, Metamorphic Ventures Chango Inc. Rubicon Project 155

Fundraising – 2015

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Fund Type # Funds # Closings Raised ($ Millions)

Private funds 17 21 1,203

Retail funds* 6 6 351

Institutional fund 1 2 260

Accelerator funds 3 3 20Government or quasi-government funds** 3 3 183

Total 30 35 2,017

* continuous closing throughout the year, treated as a single closing at year-end

** quasi-government fund - privately managed funds with government funding as main source

Fundraising – 2015

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Source of VC Fundraising ($ Millions) All funds Private funds

Retail investors 351 0

HNWI/Family Offices 231 217

Governments 363 175

Fund of Funds 322 322

Pension Funds 474 264

Corporations 276 225Total 2,017 1,203

Fund Size Closing

Initial Close (10 funds, 10 closings) 86 71

Subsequent Close (9 funds, 11 closings) 85 14

All Funds (17 funds, 21 closings) 85 30

Median ($ Millions, private funds)

CVCA Methodology

Page | 17

• Dataset includes verified completed equity or quasi-equity venture capital deals only.

• Not included are non-equity based government funding such as grants from FedDev, project financing from the SD Tech Fund of the Sustainable Development Technology Canada (SDTC), pharmaceutical product development deals, senior debt as part of overall financing package, venture capital-backed acquisitions, and angel financing.