vc & pe canadian market overview // q1 2018 · venture capital & private equity canadian...
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VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 2
CONTENTS
PARTICIPATING DATA CONTRIBUTORS ............................................................................... 3
FOREWORD ...................................................................................................................................... 4
VENTURE CAPITAL CANADIAN MARKET OVERVIEW .................................................... 5 VENTURE CAPITAL HIGHLIGHTS ................................................................................................................................ 6
VENTURE CAPITAL HEAT MAP ..................................................................................................................................... 7 QUARTER-OVER-QUARTER VC INVESTMENT ACTIVITY ......................................................................... 8 VC ACTIVITY BY DEAL SIZE ............................................................................................................................................. 9 TOP DISCLOSED CANADIAN VC DEALS ............................................................................................................... 10 TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES .................................................................... 11 VC SECTOR BREAKDOWN ............................................................................................................................................. 12 VC STAGE BREAKDOWN ................................................................................................................................................. 13 VC EXITS ....................................................................................................................................................................................... 14 TOP VC EXITS ............................................................................................................................................................................ 15MOST ACTIVE VC FIRMS // FUNDS ........................................................................................................................ 16
PRIVATE EQUITY CANADIAN MARKET OVERVIEW ...................................................... 17 PRIVATE EQUITY HIGHLIGHTS .................................................................................................................................... 18
PRIVATE EQUITY HEAT MAP // BUYOUT & ADD-ON DEALS ONLY ............................................... 19
PRIVATE EQUITY HEAT MAP // ALL PE DEALS ............................................................................................. 20 QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY ....................................................................... 21 TOP DISCLOSED CANADIAN PE DEALS............................................................................................................... 22 PE ACTIVITY BY DEAL SIZE ............................................................................................................................................ 23 TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES ................................................................... 24 PE SECTOR BREAKDOWN .............................................................................................................................................. 25 PE EXITS ....................................................................................................................................................................................... 26 TOP 10 DISCLOSED CANADIAN PE EXITS .......................................................................................................... 27MOST ACTIVE PE INVESTORS .................................................................................................................................... 28
CVCA METHODOLOGY ............................................................................................................. 29 VENTURE CAPITAL .............................................................................................................................................................. 29 PRIVATE EQUITY ............................................................................................................................................................. 30, 31
AUTHORS, ABOUT CVCA AND CONTACT INFO ............................................................. 32
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 3
PARTICIPATING DATA CONTRIBUTORS
Alberta Enterprise Corporation
Alberta Teachers' Retirement Fund (ATRF)
BDC Capital Inc
Caisse de dépôt et placement du Québec (CDPQ)
Capital Régional et Coopératif Desjardins
Dancap Private Equity Inc
Fondaction CSN
Fonds de solidarité FTQ
Fonds de solidarité FTQ (Regional)
Investissement Quebec
Northleaf Capital Partners
Ontario Teachers' Pension Plan (OTPP)
Teralys Capital
PARTICIPATING LIMITED PARTNERS
If you would like to have your firm included in future reports, please contact either [email protected] or [email protected]
PARTICIPATING PRIVATE EQUITY & LSVCC FIRMS
32 Degrees Capital
AIP Private Capital
Altas Partners LP
Arc Financial
Ardenton Capital Corporation
Birch Hill Equity Partners
Brookfield Asset Management
CIEL Capital
Clairvest Group Inc.
End of Petroleum
Fengate Real Asset Investments
First West Capital
Fulcrum Capital Partners
GrowthWorks Capital
Highland West Capital
Innovation Platform Capital
InstarAGF Asset Management
Ironbridge Equity Partners
Lex Capital Management
m2s Capital
Mink Capital
Mosaic Capital Corporation
Novacap Management Inc.
OMERS Private Equity Inc.
Parallel 49 Equity
Persistence Capital Partners
PFM Capital Inc
Pillarfour Capital
PRIVEQ Capital Funds
Regimen Equity Partners
Roynat Capital Inc.
Seafort Capital
Searchlight Capital Partners
TIMIA Capital Corp
Tricor Pacific Founders Capital
TriWest Capital Partners
Vistara Capital Partners
Westcap Mgt. Ltd
Western Investment Company of Canada Ltd.
XPND Capital
Accelerate Fund
Anges Quebec
Anges Quebec Capital
Amorchem Venture Fund
Arctern Ventures
AVAC Ltd.
Avrio Ventures Management Corp
Azure Capital Partners
Brightspark Ventures
Build Ventures
CIBC Innovation Banking
Cycle Capital Management
District Ventures LP
Emerald Technology Ventures
Emerillon Capital
Epic Capital
Espresso Capital Ltd.
Eventi Capital Partners
Evok Innovations
Fight Against Cancer Innovation Trust
Freycinet Ventures
Golden Venture Partners
Good News Ventures
Green Acre Capital
GreenSoil Investments
HIGHLINE
iGan Partners
Information Venture Partners
Innovacorp
iNovia Capital
Investeco Capital Corp
Lumira Capital
MaRS Catalyst Fund
MaRS IAF
McRock Capital
New Brunswick Innovation Foundation
Northumberland CFDC
OMERS Ventures
OpenText Enterprise Apps Fund
Pangaea Ventures
Pelorus Venture Capital Ltd.
Plaza Ventures
Quark Venture
Real Ventures
Relay Ventures
Renewal Funds
Roadmap Capital
Ryerson Futures
ScaleUP Ventures
StandUp Ventures
Tandem Expansion
TandemLaunch
TELUS Ventures
Top Renergy
Trellis Capital
TVM Life Science Management Inc.
V3-Ventures
Vancouver Founders Fund
Vanedge Capital Partners
VentureLink Funds
Versant Ventures
Version One Ventures
White Star Capital
Whitecap Venture Partners
Yaletown
PARTICIPATING VENTURE CAPITAL FIRMS
CVCA thanks the following firms who participated in itsQ1 2018 survey.
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 4
FOREWORD
Robust Q1 for VC Follows Two Back-To-Back $1B Quarters in 2017; Single PE Mega-Deal Dominates Quarter with all Other Segments Slowing
VENTURE CAPITAL2017 was even better than previously reported due to a few material last-minute deals that were only reported in early 2018. These deals included the $280M Enertech and $51M Wattpad mega-deals. Following two consecutive billion-dollar quarters in Q3 and Q4 2017 venture capital investment in Canada experienced another strong quarter with $690M was invested over 139 deals — a 6% increase compared to the $649M invested in Q1 2017. The last three quarters are evidence of a thriving VC investment climate and the CVCA expects the momentum to continue through 2018.
There were three $50M+ mega-deals in Q1 2018 which accounted for a 34% share of the total investment this quarter. Toronto-based ecobee Incoporated closed a $100M series C from an investor syndicate that included participation from Relay Ventures; Toronto-based WealthSimple Financial Incorporated raised $67M in a new round of financing from Montreal-based Power Financial Corporation; and, Vancouver-based Hootsuite Media closed a $65M financing from CIBC Innovation Banking.
“The Canadian venture capital ecosystem continues to capitalize on Canada’s strategic advantage in a number of areas, resulting in very competitive returns in many sectors,” said Mike Woollatt, CEO, CVCA. “In order for this trend to continue, we will be working hard with government and other stakeholders to ensure Canadian regulation and taxes are competitive to help foster an ongoing competitive edge.”
The exit environment for venture capital in Canada continued to rebound from last year with 11 undisclosed exits in the first quarter of the year.
Information and communication technology (ICT) companies captured the majority of Q1 2018 investment with 61% of total dollars invested ($423M over 87 deals) with cleantech companies receiving a 19% share ($132M over 16 deals).
PRIVATE EQUITYCanadian private equity investment activity experienced a slower quarter in Q1 2018 with $6.5B invested over 137 deals. $5B of that total was from the buyout of Husky Injection Molding Systems Limited with participation from CVCA member OMERS Private Equity Incorporated. This deal aside, there is a significant cooling in activity in the first quarter of 2018, with no deals between $500M-$1B and only 4 deals between $100M-$500M.
61% of all deals in the first quarter of the year were in the small end of the market segment (deals less than $25M) which was equal to last year’s share. Only a 7% share of deals were closed in the small-to-mid market ($25M-$100M), compared to the 11% share in 2017.
21% of private equity deals in Q1 2018 were closed in the industrial and manufacturing sector, with 15% in the information and communications technology (ICT) sector.
“With valuations continuing to climb, the larger buyout side of Canada’s private equity activity is experiencing a slowdown,” said Mike Woollatt, CEO, CVCA. “While there is still a lot of activity on the growth equity side, many buyout firms appear focused on selling versus buying in the Canadian market.”
The pace of private equity exits also slowed, with only 24 exits in the first quarter of the year (totalling $8.7B) compared to 2017 with 152 exits (totalling $10.8B).
$690M in venture capital invested over 139 deals in Q1 and 6% higher than Q1 2017; $5B buyout of Husky Injection Molding Systems Ltd. accounted for three-quarters of total PE investment in Q1 2018
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 5
VENTURE CAPITALCANADIAN MARKET
OVERVIEW // Q1 2018
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 6
VENTURE CAPITAL HIGHLIGHTS // Q1 2018
$690M was invested in 139 deals in the first quarter, 6% more than the $649M invested in the same quarter last year. Coming on the heels of two back-to-back $1B+ quarters, this is a healthy signal that 2018 will continue to build on last year’s momentum.
The average deal size was $5M, a 5% increase compared to Q1 2017. Compared to the average deal size in the 5-year period between 2013-2017 ($5.3M), this represents a 6% drop.
The top 10 deals amounted to $370M or a 54% share of total dollars invested. This is a significant jump from last year, where the top 10 deals accounted for only 30% share of total investment.
There were three $50M+ mega-deals this quarter which captured a 34% share of total investment:
Toronto-based ecobee Inc. closed a $100M series C round from an investor syndicate that included Relay Ventures.
Toronto-based WealthSimple Financial Inc. raised a $67M new round of financing from Montreal-based Power Financial Corporation.
Vancouver-based Hootsuite Media closed a $65M financing from CIBC Innovation Banking.
Deals between $1M-$5M captured 16% of total dollars invested, representing a 7% increase from its share last year.
Ontario-based companies received 55% of investment ($379M), up from their 38% share last year; BC-based companies received 19% ($131M) followed closely by Quebec-based companies with an 18% ($125M) share.
Toronto-based companies received almost half ($337M over 45 deals) of total dollars disbursed, with Vancouver-based companies receiving 18% ($127M over 18 deals) and Montreal-based companies a 12% share ($83M over 18 deals).
ICT companies grabbed the lion’s share (61%) of total dollars invested in Q1 2018 ($423M over 87 deals) with cleantech companies receiving a 19% share ($132M over 16 deals).
The market for exits continued the rebound from last year with 11 undisclosed exits.
Key Findings:
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 7
3520
5 4
59$125m
$379MOntario
$131MBC
$14MAlberta
Québec
Nova Scotia$38M
New Brunswick
Newfoundland& Labrador
$2M
$1M
$1MSaskatchewan
77Prince Edward
Island
$1M1
1
$690mtotal139 dealstotal #
VENTURE CAPITAL HEAT MAP // Q1 2018
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 8
0
20
40
60
80
100
120
140
160
180
200
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1000
220
240
$1,100
$1,200
Q2 Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
$35
8
$41
4
$6
91
$6
13
$41
9
$6
65
$6
21
$58
5
$9
60
$71
3
110
93
113 122
134
140 142
130
127
147
Q3
$6
82
Q4
$8
41
Q1
$6
49
$8
98
Q3
$1,
188
Q4
$1,
073
Q1
$6
90
125134
137
150155 158
139
TOTAL:438 DEALS
$2.1B
TOTAL:546 DEALS
$2.3B
TOTAL:533 DEALS
$3.2B
TOTAL:600 DEALS
$3.8B
TOTAL:139 DEALS
$690M
$ Millions Invested
# Deals
2014 20162015 2017 2018
QUARTER-OVER-QUARTERVC INVESTMENT ACTIVITY
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 9
Total Deals $ Millions
< $100K
$100 - $500K
$500K - $1M
$1M - $5M
$5M - $20M
$20M - $50M
$50M +
6
28
17
45
21
4
3
$0.4
$7
$11
$107
$245
$88
$232
VC ACTIVITY BY DEAL SIZE // Q1 2018
$5m-$20mdeals between
capture one-third share
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 10
TOP DISCLOSED CANADIAN VC DEALS // Q1 2018
COMPANY NAME PROVINCE DISCLOSED VC FIRM(S) SECTOR STAGE $ MIL
ECOBEE, INC. ONTARIO AMAZON.COM NV INVESTMENT HOLDING LLC, ENERGY IMPACT PARTNERS, RELAY VENTURES, THOMVEST VENTURES, INC. CLEANTECH LATER STAGE VC $100
WEALTHSIMPLE FINANCIAL INC. ONTARIO POWER FINANCIAL CORPORATION ICT LATER STAGE VC $65
DROP LOYALTY INC. ONTARIOFF ASSET MANAGEMENT LLC, NEW ENTERPRISE ASSOCIATES (NEA), PLAZA VENTURES, PORTAG3 VENTURES, SIERRA VENTURES, SILICON VALLEY BANK, WHITE STAR CAPITAL INC.
ICT EARLY STAGE VC $26
D-WAVE SYSTEMS INC. BC PUBLIC SECTOR PENSION INVESTMENT BOARD (PSP) ICT LATER STAGE VC $20
PLATTERZ ONTARIO ALEPH, GLOBALIVE CAPITAL ICT LATER STAGE VC $18
MNUBO INC. QUÉBEC FONDS DE SOLIDARITÉ FTQ, INVESTISSEMENT QUÉBEC, MCROCK CAPITAL CORPORATION, MUNICH RE / HSB VENTURES, WHITE STAR CAPITAL INC. ICT EARLY STAGE VC $17
* THERE WAS 1 UNDISCLOSED DEAL NOT INCLUDED IN THIS LIST
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 11
TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES // Q1 2018 #1 toronto
$337M 45 DEALS $337
$83
$127
$37
$20
$27
$9
$4
$1
$1
Total Deals $ Millions
1. Toronto
2. Montréal
3. Vancouver
4. Halifax
5. Québec
6. Kitchener, Waterloo, Cambridge
7. Ottawa
8. Estrie
9. St. John’s (NF)
10. Saguenay-Lac-St-Jean/Côte-Nord
45
18
18
5
5
5
4
4
4
3
1
8 710
625
7
39
4
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 12
0
40
80
120
160
200
240
280
320
400
360
440
520
480
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
$2,400
$2,600
2016 2017 2017 2017 201720152014 201620152014 201620152014 20152014
$1,
948
$20
8
$18
5
2016 Q12018
Q12018
Q12018
Q12018
276
329
331
379
113
104
78
$48
8 $72
1
$73
3
$70
1
$1,
342
$1,
335
106
19 47 44 35 1614
2027 25 4
$17
7
$13
8
47
$27
$42
$2,
463
$13
2
$27
$40
9
$9
8
$42
3
87
$6
8
VC SECTOR BREAKDOWN // 2014-Q1 2018
ICT CleanTechLife Sciences AgriBusiness
$ Millions Invested
# Deals
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 13
VC STAGE BREAKDOWN // 2014-Q1 2018
0
30
60
90
120
150
180
210
240
300
270
330
360
$0
$175
$350
$525
$700
$875
$1,050
$1,225
$1,400
$1,575
$1,750
$1,925
$2,100
201620152014 201620152014 201620152014
$13
6
$15
9
$21
4
$8
60
$1,
06
8
$1,
210
$8
93
$1,
570
$1,
99
4
$1,
403
201720172017
139
180 178179
220
260
235
56
117135
93
153
43
$1,
573
204
$22
7
Q12018
$54
Q12018
$27
8
Q12018
$35
7
38
Seed Early Stage Later Stage
$ Millions Invested
# Deals
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 14
VC EXITS* // 2014-Q1 2018
M&A IPO**
* INCLUDES TRANSACTIONS WITH UNDISCLOSED VALUES
** MARKET CAP AT TIME OF IPO
$ Millions Invested
# Deals
$0
$300
$600
$900
$1,200
$1,500
$1,800
$2,100
$2,400
$2,700
$3,000
0
5
10
15
20
25
30
35
40
50
45
201620152014 201620152014
$50
3
$1,
392
$58
4
$1,
00
820172017
$75
Q12018
Q12018
29
41
30
6
40 0
32
11
3
$9
19
$2,
150
$2,
338
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 15
TOP VC EXITS* // Q1 2018
There were
undisclosedexits in q1 201811
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 16
MOST ACTIVE VC FIRMS // FUNDS // Q1 2018
MOST ACTIVE PRIVATE INDEPENDENT FIRMS # ROUNDSSIZE OF TOTAL
ROUNDS*(CDN$ MIL)
REAL VENTURES 13 $60
CYCLE CAPITAL MANAGEMENT/ECOFUEL 6 $38
PLAZA VENTURES 5 $36
SCALEUP VENTURES 5 $8
KILLICK CAPITAL INC. 4 $1
PELORUS VENTURE CAPITAL LTD. 4 $1
INOVIA CAPITAL INC. 3 $17
IGAN PARTNERS INC. 3 $13
GOLDEN VENTURE PARTNERS 3 $7
MOST ACTIVE VC DEBT FIRMS # ROUNDSSIZE OF TOTAL
ROUNDS*(CDN$ MIL)
ESPRESSO CAPITAL LTD. 12 $12
CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS (CRCD) 3 $2
TIMIA CAPITAL CORP. 2 $1
MOST ACTIVE PENSION, RETAIL, CORPORATE & OTHER PUBLIC FUNDS # ROUNDS
SIZE OF TOTAL ROUNDS*
(CDN$ MIL)
CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS (CRCD) 12 $23
FONDS DE SOLIDARITÉ FTQ 6 $37
MOST ACTIVE GOVERNMENT FUNDS # ROUNDSSIZE OF TOTAL
ROUNDS*(CDN$ MIL)
NEW BRUNSWICK INNOVATION FOUNDATION (NBIF) 7 $3
INNOVACORP 6 $24
BDC CAPITAL 6 $16
MARS IAF 5 $5
INVESTISSEMENT QUÉBEC 3 $39
ATLANTIC CANADA OPPORTUNITIES AGENCY (ACOA) 3 $5
ANGES QUÉBEC CAPITAL 3 $9* TOTAL DEAL VALUES - INCLUDES ALL PARTICIPATING INVESTORS
# Rounds
Real Ventures
Capital Régional et Coopératif Desjardins (CRCD)
New Brunswick Innovation Foundation (NBIF)
Cycle Capital Management/Ecofuel
Fonds de solidarité FTQ
Innovacorp
BDC Capital
Plaza Ventures
ScaleUp Ventures
MaRS IAF
13
12
7
6
6
6
6
5
5
5
Size of Total Rounds* (Cdn$ mil)
$60
$23
$3
$38
$37
$24
$16
$36
$8
$5
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 17
PRIVATE EQUITYCANADIAN MARKET
OVERVIEW // Q1 2018
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 18
$6.8B was invested over 137 PE deals in Q1 2018, although three quarters of that amount was a single mega-deal—the $5B secondary buyout of Husky Injection Molding Systems Ltd.
Excluding that single-mega deal, the first quarter was relatively bleak with no deals between $500M-$1B and only 4 deals between $100M-$500M.
Propelled by the $5B Husky deal, the amount invested in secondary buyouts has already exceeded the total in each of the last five years.
Deal activity in the small end of the market segment (deals less than $25M) garnered 61% of all deals, equal to last year’s share. Deals between $25M-$100M only captured a 7% share of deals, down from the 11% last year.
20% (27 deals totalling $594M) of all PE deals went to Montreal-based companies, with Toronto-based companies receiving a 12% share (17 deals totalling $5.3B).
A little over a fifth (21%) of PE deals this year have been closed in the industrial and manufacturing sector with ICT companies receiving the second largest share (15%).
The pace of PE exits slowed with only 24 exits (totalling $8.7B) compared to last year with 152 exits (totalling $10.8B):
Pinnacle Renewable Energy Inc. (TSX: PL) was the lone IPO, going public on TSX with a market cap of $370M.
PRIVATE EQUITY HIGHLIGHTS // Q1 2018
Key Findings:
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 19
546
1 2
$24M$0M
$50M
$403m
$0M
$5.2bOntario
BCAlberta
Saskatchewan
Québec
Nova Scotia
16
$0MManitoba
NewBrunswick
$0M
1 1
$5.7btotal
36 dealstotal #
PRIVATE EQUITY HEAT MAP // BUYOUT & ADD-ON DEALS ONLY // Q1 2018
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 20
4 2
11
801312
$54m$17m
$173m
$1.1b
$0M
$5.4bOntario
BCAlberta
Saskatchewan
Québec
Nova Scotia
24
$0MManitoba $0M
NewBrunswick
$6.8btotal 137 dealstotal #
PRIVATE EQUITY HEAT MAP // ALL PE DEALS // Q1 2018
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 21
Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
0
20
40
60
80
100
120
140
160
180
200
$6
,277
$5,
250
$7,
80
4
$22
,851
$7,
053
$1,
86
9
$11
,36
7
$2,
60
0
$3,
221
$3,
370
64
81
88
101
91
104
117
113
124
145
134
139
$3,
06
8
Q3
$4,
179
Q4
$5,
315
Q1 Q2 Q3 Q4
113
179
165 153
137
$8
,819
$7,
554
$4,
69
2
Q1
$6
,76
8
QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY
TOTAL:334 DEALS
$42.2B
TOTAL:425 DEALS
$22.9B
TOTAL:542 DEALS
$13.8B
TOTAL:610 DEALS
$26.4B
TOTAL:137 DEALS
$6.8B
$ Millions Invested
# Deals
2014 20162015 2017 2018
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 22
TOP DISCLOSED CANADIAN PE DEALS // Q1 2018
COMPANY NAME PROVINCE FIRMS INVOLVED IN TRANSACTION SECTOR $ MIL.
HUSKY INJECTION MOLDING SYSTEMS LTD ONTARIO BERKSHIRE PARTNERS LLC, OMERS PRIVATE EQUITY INC., PLATINUM EQUITY LLC INDUSTRIAL &
MANUFACTURING $4,964
NAPEC INC. QUÉBEC FONDS DE SOLIDARITÉ FTQ, OAKTREE CAPITAL GROUP LLC INDUSTRIAL & MANUFACTURING $320
POINTCLICKCARE CORP. ONTARIO DRAGONEER INVESTMENT GROUP LIFE SCIENCES $187
eSTRUXTURE QUÉBEC FENGATE CAPITAL MANAGEMENT LTD. ICT $180
RÉSIDENCES POUR AÎNÉS IMMO 1ERE INC. QUÉBEC CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS (CRCD) REAL ESTATE $122
CBI HEALTH GROUP ONTARIO OMERS PRIVATE EQUITY INC., PENFUND INC. LIFE SCIENCES $70
* THERE WERE 3 UNDISCLOSED DEALS OVER $50M THAT WERE NOT INCLUDED IN THIS LIST
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 23
0
40
80
120
160
200
240
280
320
400
360
$0
$1,600
$3,200
$4,800
$6,400
$8,000
$9,600
$11,200
$12,800
$14,400
$16,000
201620152014 201620152014 201620152014 20152014
$8
49
$9
02
$1,
290
$6
,09
3
$6
,321
$3,
212
$5,
86
1
$3,
106 $
4,79
7 $6
,60
1
2016
$7,
630
201620152014 201620152014
$10
,910
$4,
782
$4,
034
$3,
250
$3,
300
$4,
80
0
201720172017201720172017
$14
,927
116
183
362
55 56 49 27 3114 10 7 1144
7 3 3 22 1 0 1 1
$2,
80
4
$2,
788
$2,
197
$3,
246
$1,
593
Q12018
370
8466
10
28
< $25M $25M-$100M $100M-$500M $1B-$2.5B$500M-$1B $2.5B+
Q12018
$50
4
Q12018
$8
09
Q12018
Q12018
Q12018
$4,
96
4
$49
1
PE ACTIVITY BY DEAL SIZE // Q1 2018
TOTAL:1062 DEALS
$5.1B
TOTAL:236 DEALS
$11.5B
TOTAL:104 DEALS
$22.3B
TOTAL:15 DEALS
$23B
TOTAL:32 DEALS
$22.1B
TOTAL:5 DEALS
$28B
$ Millions Invested
# Deals
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 24
Total Deals $ Millions
1. Montreal
2. Toronto
3. Calgary
4. Montérégie
5. Saguenay-Lac-St-Jean/Côte-Nord
6. Bas-Saint-Laurent
7. Vancouver
8. Chaudière-Appalaches
9. Centre-du-Québec
10. Nord-du-Québec / Abitibi-Témis
27
17
10
9
7
7
6
5
4
4
$594
$5,269
$46
$21
$22
$41
$113
$21
$383
$4
TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES // Q1 2018 #1 montréal
$594M 27 DEALS
2
3
8
6
10
41
75
9
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 25
29
21
17
16
13
10
7
6
6
5
3
3
1
# Deals $ Millions
Industrial & Manufacturing
ICT
Life Sciences
Consumer & Retail
Business Products & Services
Agri-Forestry
Oil & Gas, Power
Automotive & Transportation
CleanTech
Mining & Resources
Financial
Real Estate
Others
$5,395
$309
$402
$66
$101
$39
$112
$103
$30
$4
$60
$146
$0
PE SECTOR BREAKDOWN // Q1 2018
industrial & manufacturing
most active sector
29 deals
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 26
PE EXITS* // 2014-Q1 2018 $ Millions Invested
# Deals
* INCLUDES TRANSACTIONS WITH UNDISCLOSED VALUES
** MARKET CAP AT TIME OF IPO
201620152014 201620152014 201620152014
$8
,055
$2,
553
$1,
711
$4,
238
201720172017
$37
0
Q12018
$11
,679
$12
,812
$6
,943
$2,
790
0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
5 61 1
6
50 50
56
134
1210
6
11
IPO/RTO** M&A Secondary Buyout
Q12018
Q12018
$5,
212
19
$3,
162
4
$2,
015
$2,
241
$3,
793
$1,
714
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 27
TOP 10 DISCLOSED CANADIAN PE EXITS // Q1 2018
SELLER COMPANY NAME BUYER $ MIL.
BERKSHIRE PARTNERS LLC, OMERS PRIVATE EQUITY INC. HUSKY INJECTION MOLDING SYSTEMS LTD PLATINUM EQUITY LLC $4,964
PERMIRA, FONDS DE SOLIDARITÉ, CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) ATRIUM INNOVATIONS INC. NESTLÉ S.A. $2,973
ONCAP PINNACLE RENEWABLE ENERGY INC. NA - IPO ON TSX $370
NA POINTCLICKCARE CORP. DRAGONEER INVESTMENT GROUP $187
Husky Injection Molding Systems Ltd
bought by Platinum Equity, LLC $4,964m#1
* THERE WERE 3 UNDISCLOSED $50M+ EXITS
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 28
37
24
7
7
4
4
# Deals $ Millions*
Fonds de solidarité FTQ
Capital Régional et Coopératif Desjardins (CRCD)
Caisse de dépôt et placement du Québec (CDPQ)
Fondaction CSN
Investissement Québec
PFM Capital Inc.
$717
$208
$140
$44
$40
$27
MOST ACTIVE PE INVESTORS // Q1 2018
* TOTAL DEAL VALUES – INCLUDES ALL PARTICIPATING INVESTORS
most active PE FIRM
37 DEALSFonds de solidarité FTQ
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 29
CVCA METHODOLOGY // VENTURE CAPITAL
VC DEVELOPMENT STAGES
SEED STAGE COMPANY HAS A CONCEPT OR PRODUCT UNDER DEVELOPMENT, BUT IS PROBABLY NOT FULLY OPERATIONAL.
EARLY STAGE COMPANY HAS A PRODUCT OR SERVICE IN TESTING OR PILOT PRODUCTION. IN SOME CASES, THE PRODUCT MAY BE COMMERCIALLY AVAILABLE.
LATER STAGE PRODUCT OR SERVICE IN PRODUCTION AND COMMERCIALLY AVAILABLE. COMPANY IS GENERATING ON-GOING REVENUE, BUT NOT NECESSARILY, PROFITABLE.
VC SECTORS
ICT COMPUTER HARDWARE AND SOFTWARE AND SERVICES, INTERNET SOFTWARE OR SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE AND TELECOM TECHNOLOGIES AND SERVICES
LIFE SCIENCES BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES
CLEANTECH ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES
AGRIBUSINESS TRADITIONAL AND ADVANCED AGRICULTURAL TECHNOLOGIES AND SERVICES
Venture Capital Data:
Verified completed equity or quasi-equity venture capital deals only (non-equity or project-based government funding, pharmaceutical development deals, senior debt, venture capital-backed acquisitions, and angel financing are not included)
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 30
CVCA METHODOLOGY // PRIVATE EQUITY
Private Equity Data:
Dataset includes only completed private equity deals (announced but yet to be completed deals are not included)
PE DEAL TYPE
BUYOUT INVESTMENT FOR THE CONTROL OF A PORTFOLIO COMPANY, INCLUDING PLATFORM CREATION, SECONDARY BUYOUT
GROWTH SIGNIFICANT MINORITY INVESTMENT INTO A PORTFOLIO COMPANY, THROUGH NEW CAPITAL INFUSION AND RECAPITALIZATION
ADD-ON CORPORATE ACQUISITIONS BY MAJORITY CONTROLLED PE BACKED PORTFOLIO COMPANIES
DEBT DEBT INVESTMENT INTO PORTFOLIO COMPANIES
INFRASTRUCTURE INVESTMENTS INTO DEVELOPMENT AND MANAGEMENT OF INFRASTRUCTURE ASSETS BUT PE DOES NOT OWN THE UNDERLYING ASSETS
continued
PE SECTORS
AGRI-FORESTRY AGRICULTURE, FOODS AND FORESTRY
AUTOMOTIVE & TRANSPORTATION TRANSPORTATION, LOGISTICS AND RELATED SERVICES
BUSINESS PRODUCTS & SERVICES BUSINESS PRODUCTS AND SERVICES
CLEANTECH ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 31
CVCA METHODOLOGY // PRIVATE EQUITY continued
PE SECTORS
CONSUMER & RETAIL CONSUMER PRODUCTS AND SERVICES, BRICK AND MORTAR RETAIL
FINANCIAL FINANCIAL SERVICES
ICT COMPUTER HARDWARE/SOFTWARE & SERVICES, INTERNET SOFTWARE & SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE & TELECOM AND SERVICES
INDUSTRIAL & MANUFACTURING EQUIPMENT AND MATERIAL MANUFACTURING
LIFE SCIENCES BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES
MINING & RESOURCES NON OIL AND GAS NATURAL RESOURCES
OIL & GAS, POWER OIL & GAS, POWER AND UTILITIES
REAL ESTATE PROPERTY DEVELOPMENT AND MANAGEMENT
VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 32
CVCA ABOUT & CONTACT
AuthorsDarrell oversees all data related to Canadian private capital investments, exit and fundraising activities for the CVCA. Darrell has held senior positions at several global organizations including the Toronto Stock Exchange, Institutional Limited Partners Association, Thomson Reuters, Glaxosmithkline and the Interac Association. In between these, he also started his own successful management consulting company. He has worked in New York, London and Shanghai, but Toronto remains his favourite working city. He brings to the CVCA a passion for telling compelling stories with data. Darrell is currently on the board of a non-profit social housing in Peel, a member of Volunteer Toronto as well as an active volunteer with Woodgreen Community Services. He holds a BA in Philosophy/History from the University of Western Ontario and an MBA from the Rotman School of Management.
[email protected] | 416-487-0519 ext. 208
Carolyn oversees all of the CVCA’s communications and marketing efforts, which includes managing the Association’s brand, coordinating media outreach programs, and managing the development of all online content and social media engagements. Carolyn also brings with her a background in journalism, and is keen on positioning the CVCA as the industry thought leader for all things private capital through informative and engaging content. Carolyn has a BA in Popular Culture and Communications from Brock University, a diploma in Journalism from Niagara College Canada, and an interdisciplinary Master of Arts degree in Communication Studies from Brock University.
[email protected] | 416-487-0519 ext. 204
David executes research on venture capital and private equity deals within Canada. David is responsible for monitoring industry activity and maintaining the CVCA’s Infobase by entering data, including investments, exits, deals and fundraising activities on a daily basis. David holds a BA in Philosophy and Psy-chology from the University of Toronto.
[email protected] | 416-487-0519 ext. 202
DARRELL PINTOResearch Director
DAVID KORNACKIResearch Analyst
CAROLYN GOARDSenior Manager, Communications
About CVCAThe Canadian Venture Capital and Private Equity Association is the voice of Canada’s venture capital and private equity industry. We are focused on improving the private capital ecosystem by broadening indus-try awareness and providing market research, networking, and professional development opportunities.
We also advocate on behalf of the industry to ensure sound public policy that encourages a favourable investment environment. The CVCA works alongside its members, who represent the vast majority of pri-vate capital firms in Canada, to improve the industry and drive innovation and growth.
For more information, visit cvca.ca
@CVCACanada /CVCACanada
CVCA - Canadian Venture Capital and Private Equity Association
372 Bay St., Suite 1201 Toronto, ON M5H 2W9
To obtain estimates for additional custom InfoBase data reports please contact [email protected]