vc & pe quÉbec market overview // 2017 · previous years may not be consistent with rÉseau...
TRANSCRIPT
NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST
PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.
VC & PE QUÉBEC MARKET OVERVIEW
// 2017
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 2
CONTENTS
PARTICIPATING DATA CONTRIBUTORS ............................................................................... 3
FOREWORD ...................................................................................................................................... 4 VC & PE ACTIVITY .................................................................................................................................................................... 5 VC & PE ACTIVITY BY ADMINISTRATIVE CENTRE .......................................................................................... 6
VENTURE CAPITAL QUÉBEC MARKET OVERVIEW ......................................................... 7 QUÉBEC VENTURE CAPITAL HIGHLIGHTS ......................................................................................................... 8
VENTURE CAPITAL HEAT MAP ..................................................................................................................................... 9 QUARTER-OVER-QUARTER VC INVESTMENT IN QUÉBEC ................................................................. 10 VC ACTIVITY BY DEAL SIZE ............................................................................................................................................ 11 VC SECTOR BREAKDOWN ...............................................................................................................................................12 VC STAGE BREAKDOWN ................................................................................................................................................. 13 TOP 10 DISCLOSED QUÉBEC VC DEALS ............................................................................................................. 14 TOP DISCLOSED VC EXITS .............................................................................................................................................. 15MOST ACTIVE FIRMS IN QUÉBEC ............................................................................................................................. 16
PRIVATE EQUITY QUÉBEC MARKET OVERVIEW ........................................................... 17 QUÉBEC PRIVATE EQUITY HIGHLIGHTS ............................................................................................................. 18
PRIVATE EQUITY HEAT MAP ......................................................................................................................................... 19 QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY IN QUÉBEC ......................................... 20 PE ACTIVITY BY DEAL SIZE ............................................................................................................................................ 21 PE SECTOR BREAKDOWN .............................................................................................................................................. 22 TOP 10 DISCLOSED QUÉBEC PE DEALS ............................................................................................................. 23 TOP DISCLOSED PE EXITS IN QUÉBEC ................................................................................................................ 24MOST ACTIVE PE INVESTORS IN QUÉBEC ........................................................................................................ 25
CVCA METHODOLOGY ............................................................................................................. 26 VENTURE CAPITAL .............................................................................................................................................................. 26 PRIVATE EQUITY ............................................................................................................................................................. 27, 28
CVCA/RÉSEAU CAPITAL ABOUT & CONTACT .............................................................. 29
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 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)
HarbourVest Partners, LLC
Investissement Quebec
Kensington Capital Partners Limited
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
ATB Capital
Birch Hill Equity Partners
Brookfield Asset Management
CIEL Capital
Clairvest Group Inc.
First West Capital
Fulcrum Capital Partners
GrowthWorks Atlantic Venture Fund Ltd.
Growthworks Working Opportunity Fund (EVCC) Ltd.
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.
Parallel 49 Equity
Persistence Capital Partners
PFM Capital Inc
Pillarfour Capital
PRIVEQ Capital Funds
Regimen Equity Partners
Roynat Capital Inc.
Searchlight Capital Partners
TIMIA Capital Corp
Tricor Pacific Founders Capital
TriWest Capital Partners
VERTU Capital
Westcap Mgt. Ltd
Western Investment Company of Canada Limited
XPND Capital
Amorchem Venture Fund
Anges Quebec
Anges Quebec Capital
Avrio Ventures Management Corp
Azure Capital Partners
Brightspark Ventures
CTI Life Sciences
Cycle Capital Management/Ecofuel
Difference Capital
Emerald Technology Ventures
Emerillon Capital
EnerTech Capital
Espresso Capital Ltd.
Eventi Capital Partners
Evok Innovations
Fight Against Cancer Innovation Trust
Freycinet Ventures
Georgian Partners
Golden Venture Partners
Good News Ventures
Green Acre Capital
GreenSoil Investments
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
Pangaea Ventures
Pelorus Venture Capital Ltd.
Plaza Ventures
Quark Venture
Real Ventures
Relay Ventures
Renewal Funds
Roadmap Capital
Ryerson Futures
ScaleUP Ventures
Tandem Expansion
TandemLaunch
TEC Venture Angels
Top Renergy
TVM Life Science Management Inc.
Vancity Capital Corp
Vancouver Founders Fund
Vanedge Capital Partners
VentureLink Funds
Versant Ventures
Version One Ventures
Wellington Financial
White Star Capital
Whitecap Venture Partners
Yaletown
PARTICIPATING VENTURE CAPITAL FIRMS
CVCA thanks the following firms who participated in itsQ4 2017 survey.
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 4
FOREWORD
2017 VC & PE Québec Market Overview: VC Mega Deals Drive VC Investment Year-Over-Year Spike; PE Investment Doubles In Q4
Québec venture capital continued its impressive trajectory in 2017 capturing 30% of the total number of Canadian VC deals (180 out of 592) and 37% of dollars invested ($1.3B out of $3.5B). Québec private equity captured 55% of all PE deals (330 out of 603) with $10.7B invested in Québec-based companies in 2017.
Six $50M+ mega deals totaling $691M accounted for 52% of total VC dollars invested in Québec. Three of the $100M+ deals included the $207M Series D in Montréal-based Lightspeed POS Incorporated from a syndicate including Caisse de dépôt et placement du Québec (CDPQ), Investissement Québec, iNovia Capital and Teralys Capital; the $141M in Montréal-based Element AI with participation from Real Ventures; and, the $128M Series C in Québec City-based LeddarTech with help from Fonds de solidarité FTQ.
Information communications technology companies received $860M, a 65% share of total VC dollars invested in the province; up 19% since 2016. Life science companies received $326M, a 25% share
of VC investment. Agribusiness continued its upward trajectory in Québec with $70M invested over 14 deals; a steady increase from 2013 when only $7M was invested over 5 deals.
“Venture capital continues to indicate a high level of trust in the Québec economy,” says Réseau Capital CEO, Jack Chadirdjian. “2017 year-end data confirms investors are attracted to Québec companies.”
Two $1B+ mega-deals amounted to $3.3B or 31% of total PE dollars invested in the province. This included a private placement in Osisko Gold Royalties Limited by Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ.
Industrial and manufacturing companies received the largest share of PE investment in Québec at 26% of all deals, while consumer and retail companies received 15%.
“Québec private equity investment continues to lead the country,” says Chadirdjian. “The private capital data proves the province continues to be a great place to invest.”
Québec captures 30% of all Canadian VC deals in 2017; Leads the country in private equity investment
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 5
VC & PE ACTIVITY // 2017
510 dealstotal #
330deals
180deals
$12btotalinvested
$10.7b
Private Equity Venture Capital
$1.3b
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 6
Laurentides
Outaouais
Nord-du-Québec /Abitibi-Témiscamingue
Laval
33
11
Montréal Montérégie
Lanaudière
Estrie
Centre-du-Québec
312
Québec
Chaudière-Appalaches
Mauricie
Saguenay-Lac-St-Jean /Côte-Nord
Bas-Saint-Laurent
Gaspésie/Îles-de-la-Madeleine
8
8
3
88 132 54 91112
115
828
218
113
157
10 2
5 1
VC & PE ACTIVITY BY ADMINISTRATIVE CENTRE // 2017
montréal
220 DEALSmost active region
total #Private Equity
Venture Capital
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 7
NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST
PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.
VENTURE CAPITAL QUÉBEC MARKET
OVERVIEW // 2017
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 8
QUÉBEC VENTURE CAPITAL HIGHLIGHTS // 2017
Q4 2017 HIGHLIGHTS:
$218M was invested over 51 deals in Q4 in Québec, 7% more than the amount invested in the same quarter last year ($203M).
The average deal size dropped to $4.3M down 31% from the same quarter last year.
2017 HIGHLIGHTS:
Six $50M+ mega-deals totaling $691M accounted for 52% of total dollars invested. This included three $100M+ deals:
Montréal-based Lightspeed POS Inc. raised a record $207M Series D round from a syndicate including Caisse de dépôt et placement du Québec (CDPQ), Investissement Québec, iNovia Capital Inc. and Teralys Capital.
Real Ventures participated in Montréal-based Element AI’s $141M Series A round.
Québec-based LeddarTech closed its $128M series C round from Fonds de solidarité FTQ.
Québec captured 30% of the total number of Canadian VC deals (180 out of 592) and 37% of dollars invested ($1.3B out of $3.5B).
38% of VC activity in the province was in deal sizes between $1M-$5M, followed by deals between $100K-$500K capturing a 22% share and deals between $5-$20M a 12% share.
ICT companies received $860M, a 65% share of total dollars, up 19% from its 2016 share.
Life sciences companies received $326M or 25% of total dollars, down 7% from its 2016 share.
Although a much smaller industry segment, VC investment in agribusiness companies continued its upward trajectory with $70M invested over 14 deals. This has been steadily rising from 2013 when only $7M was invested over 5 deals.
73% of all VC deals in the province were in Montreal- based companies.
Notable exits included the $392M Airbnb acquisition of Montreal-based Luxury Retreats, the $174M IPO of Montreal-based Clementia Pharmaceuticals Inc. and the $133M acquisition of Accedian Networks by Bridge Growth Partners.
Key Findings:
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 9
VENTURE CAPITAL HEAT MAP // 2017
18091
2
15
236 30
$1,322m
$1,416MOntario
$646MBC
$37MAlberta
$5MManitoba
Québec
Nova Scotia$77M
New Brunswick
Newfoundland& Labrador
$16M
$6M
$14MSaskatchewan
2110
7
$3.5btotal592 dealstotal #
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 10
QUARTER-OVER-QUARTER VC INVESTMENT IN QUÉBEC // 2017
TOTAL:83 DEALS / $307M
TOTAL:111 DEALS / $344M
TOTAL:171 DEALS / $697M
TOTAL:166 DEALS / $982M
TOTAL:180 DEALS / $1.3B
$ Millions Invested
# Deals
NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.
0
10
20
30
40
50
60
70
80
60
70
80
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
Q2Q1 Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1 Q3 Q2
$13
4
$8
4
$6
6 $30
$72
$16
8
$73
$6
1
$19
2
$22
7
$21
7
$13
5
$17
8
$34
9
Q3
$57
7
Q4
$21
8
$37
7
15
29
21
18
28
27
34
22
3839
61
33
28
56$
23
49
$26
7
Q4
$20
3
33
36 40
53 51
2013 2014 2015 2016 2017
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 11
$0
$8
$15
$152
$198
$258
$691
Total Deals $ Millions
< $100K
$100 - $500K
$500K - $1M
$1M - $5M
$5M - $20M
$20M - $50M
$50M +
9
40
20
69
22
8
6
VC ACTIVITY BY DEAL SIZE // 2017
most active deal category
in the province
$1M-$5M
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 12
VC SECTOR BREAKDOWN // 2013-2017 $ Millions Invested
# Deals
NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.
0
10
20
30
40
50
60
70
80
100
90
$0
$60
$120
$180
$240
$300
$360
$420
$480
$540
$600
110
120
140
130
$660
$720
$780
$840
150$900
2016201520142013 20142013 201320162015 20152014 201420132016 20162015
$11
8
$18
8
$52
$31
7
$45
5
2017201720172017
$8
60
$31
2
$28
8
$29
$32
6
$97
$20
$70
$7
12107
5
10 14 14
43
1610
6
39
32
1911
8990
85
64
50
ICT Life Sciences CleanTech Agribusiness
$48
$6
2
$6
1
$37
$30
$6
7
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 13
VC STAGE BREAKDOWN // 2013-YTD Q3 2017 $ Millions Invested
# Deals
NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.
0
10
20
30
40
50
60
70
80
100
90
$0
$60
$120
$180
$240
$300
$360
$420
$480
$540
$600
110$660
130
120$720
$780
2016201520142013 2016201520142013 2016201520142013$
108
$18
4
$17
3
$12
9
$35
8
$29
6
201720172017
$41
4
$73
1
$52
9
29
36
45
36 3731
48
73
97
21
81
27
49
33
60
$54
0
Seed Early Stage Later Stage
$41
$16
$27
$39
$42
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 14
TOP 10 DISCLOSED QUÉBEC VC DEALS // 2017
COMPANY NAME ADMIN. CENTRE SECTOR DISCLOSED INVESTORS $ MIL.
LIGHTSPEED POS INC. MONTRÉAL ICT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), INOVIA CAPITAL INC., INVESTISSEMENT QUÉBEC, TERALYS CAPITAL $207
ELEMENT AI INC. MONTRÉAL ICTBDC CAPITAL INC., DATA COLLECTIVE, FMR LLC (FIDELITY), HANWHA INVESTMENT CORP, INTEL CAPITAL, MICROSOFT VENTURES, NATIONAL BANK OF CANADA, NVIDIA CORPORATION, REAL VENTURES
$141
LEDDARTECH INC. QUÉBEC ICT FONDS DE SOLIDARITÉ FTQ $128
REPARE THERAPEUTICS INC. BAS-SAINT-LAURENT LIFE SCIENCES
VERSANT VENTURE MANAGEMENT, LLC, MPM CAPITAL, BDC CAPITAL INC., CELGENE EUROPEAN INVESTMENT CO. LLC, FONDS DE SOLIDARITÉ FTQ, FONDS RÉGIONAUX DE SOLIDARITÉ FTQ
$91
MILESTONE PHARMACEUTIQUES INC. MONTRÉAL LIFE SCIENCES BDC CAPITAL INC., FONDS DE SOLIDARITÉ FTQ $71
BREATHER PRODUCTS INC. MONTRÉAL ICT MENLO VENTURES, RRE VENTURES, SLOW VENTURES, VALAR VENTURES MANAGEMENT LLC $53
INOCUCOR TECHNOLOGIES INC. MONTRÉAL AGRIBUSINESS CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS (CRCD), CLOSED LOOP CAPITAL, CYCLE CAPITAL MANAGEMENT (CCM), TPG CAPITAL LP $39
FORTUNA FIX MONTRÉAL LIFE SCIENCES AMGEN VENTURES $32
BLOCKSTREAM CORPORATION MONTRÉAL ICT DG LAB FUND $32
LOGICIELS PARTNER ONE INC. MONTRÉAL ICT FONDS DE SOLIDARITÉ FTQ $26
THERE WERE 3 UNDISCLOSED DEALS THAT WERE NOT INCLUDED IN THIS TABLE
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 15
TOP DISCLOSED VC EXITS // 2017
VC INVESTORS COMPANY NAME SECTOR EXIT TRANSACTION ACQUIRED BY $ MIL.
CLARIDGE, INOVIA CAPITAL, GROUPE DYNAMITE, TERALYS, INTERMEDIA PARTNERS
LUXURY RETREATS INTERNATIONAL INC. ICT M&A AIRBNB $392
BDC HEALTHCARE, FONDS DE SOLIDARITÉ FTQ, ORBIMED ADVISORS LLC CLEMENTIA PHARMACEUTICALS INC.
LIFE SCIENCES IPO NA $174
FONDS DE SOLIDARITÉ FTQ, RHO CANADA VENTURES, SUMMIT PARTNERS, SKYPOINT CAPITAL CORPORATION ACCEDIAN NETWORKS INC. ICT M&A BRIDGE GROWTH
PARTNERS $133
REAL VENTURES VRVANA INC. ICT M&A APPLE $38
NOTE: There were 8 additional undisclosed exits involving
Quebec-based companies
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 16
$103
$58
Capital Régional et Coopératif Desjardins
Real Ventures
Fonds de solidarité FTQ
BDC Capital
Cycle Capital Management (CCM)
Investissement Québec
Fondaction CSN
500 Startups Canada
Caisse de dépôt et placement du Québec (CDPQ)
Total Deals $ Millions*
46
33
26
23
18
14
9
8
7
34
16
Réseau Anges Québec
Anges Québec Capital
$252
$325
$520
$521
$99
$290
$19
$4
$287
MOST ACTIVE VC FIRMS IN QUÉBEC // 2017
* TOTAL DEAL VALUES - INCLUDES ALL PARTICIPATING INVESTORS
Capital Régional et Coopératif Desjardins
46 DEALS
most active FIRM
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 17
NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST
PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.
PRIVATE EQUITY QUÉBEC MARKET
OVERVIEW // 2017
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 18
PRIVATE EQUITY HIGHLIGHTS // 2017
Q4 2017 HIGHLIGHTS:
$2.1B was invested in Q4, more than double the $1B from the same quarter last year.
The average deal size was $24.8M in Q4, up 98% from the $12.5M in Q4 2016.
2017 HIGHLIGHTS:
Québec captured 55% of all Canadian PE deals (330 out of 603), three times greater than Ontario’s 18% share and five times greater than Alberta’s 11% share. There was $10.7B invested in Québec-based companies in 2017, compared to $8.6B in Ontario-based companies and $3.1B in Alberta-based companies.
30% of all deals were between $1M-$5M, with deals between $5M-$25M capturing a 21% share of the province’s deal activity.
Industrial and manufacturing companies received the largest share of PE deals (26%) with consumer and retail companies receiving 15%.
2 $1B+ mega-deals amounted to $3.3B or 31% of total dollars invested. This included a private placement in Osisko Gold Royalties Ltd. by Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ.
There were 101 exits involving Québec-based companies.
Key Findings:
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 19
3306755
22 9
$3.1B$76m
$2.9B
$10.7b
na
$8.6bOntario
BCAlberta
Saskatchewan
Québec
Nova Scotia
110
$981MManitoba
5
Prince EdwardIsland
na2
$33mNew
Brunswick
3
$26.3btotal 603 dealstotal #
PRIVATE EQUITY HEAT MAP // ALL PE DEALS // 2017
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 20
TOTAL:66 DEALS / $1.7B
TOTAL:97 DEALS / $5.8B
TOTAL:176 DEALS / $5.5B
TOTAL:347 DEALS / $3.8B
TOTAL:330 DEALS / $10.7B
$ Millions Invested
# Deals
QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY IN QUÉBEC // 2017
NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL’S HISTORICAL REPORTS.
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Q2Q1 Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
$4,000
$42
$1,
458
$15
4
$1,
141
$1,
917
$1,
843
$9
00
$1,
729
$26
7
$2,
556
$9
05
$1,
255
$9
13
12
2521 20
2528 24
30
4946
51
87 91
Q3
86
$6
20
Q2
$1,
038
$2,
86
0
$1,
371
Q3
$4,
295
Q4
$2,
134
83
62
97
85
86
Q4
$8
4
8
2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
150
$4,500 160
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 21
Total Deals $ Millions
< $100K
$100 - $500K
$500K - $1M
$1M - $5M
$5M - $25M
$25M - $100M
$100M - $500M
$500M-$1B
$1B-$2.5B
$2.5B+
9
34
49
99
70
31
13
3
2
0
$1
$9
$31
$221
$755
$1,388
$2,887
$2,118
$3,250
$0
PE ACTIVITY BY DEAL SIZE // 2017
capture 30% of total dollars
2 Mega-deals
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 22
PE SECTOR BREAKDOWN // 2017
85 deals
most active sector
Industrial & Manufacturing
85
49
41
39
28
24
20
13
10
9
9
2
1
# Deals $ Millions
Industrial & Manufacturing
Consumer & Retail
ICT
Mining & Resources
Agri-Forestry
Business Products & Services
Automotive & Transportation
Life Sciences
Others
Financial
CleanTech
Real Estate
Oil & Gas, Power
$1,478
$1,417
$1,009
$1,754
$1,014
$463
$518
$219
$2,232
$196
$66
$7
$288
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 23
TOP 10 DISCLOSED QUÉBEC PE DEALS // 2017
COMPANY NAME ADMIN. CENTRE DISCLOSED INVESTORS INVOLVED IN TRANSACTION SECTOR $ MIL.
GARDA WORLD SECURITY CORP. MONTRÉAL APAX PARTNERS LLP, RHÔNE GROUP LLC OTHERS $2,200
OSISKO GOLD ROYALTIES LTD. MONTRÉAL CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), FONDS DE SOLIDARITÉ FTQ MINING & RESOURCES $1,050
CANAM GROUP INC. CHAUDIÈRE-APPALACHES
AMERICAN INDUSTRIAL PARTNERS (AIP), CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ)
INDUSTRIAL & MANUFACTURING $890
ALIMENTATION COUCHE-TARD INC. LAVAL CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) CONSUMER & RETAIL $700
BORALEX INC. CENTRE- DU-QUÉBEC CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), CASCADES INC. OIL & GAS, POWER $288
QUEBEC IRON ORE INC. MONTRÉAL CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), SPROTT RESOURCE LENDING CORP. MINING & RESOURCES $230
LA COOP FÉDÉRÉE MONTRÉAL FONDACTION CSN, FONDS DE SOLIDARITÉ FTQ, NATIONAL BANK OF CANADA AGRI-FORESTRY $200
LA CAPITALE FINANCIAL GROUP INC. QUÉBEC CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) FINANCIAL $150
ACCEDIAN NETWORKS INC. MONTRÉAL BRIDGE GROWTH PARTNERS LLC, FONDS DE SOLIDARITÉ FTQ, RHO CANADA VENTURES, SKYPOINT CAPITAL CORPORATION, SUMMIT PARTNERS ICT $133
CCM HOCKEY BAS-SAINT-LAURENT ADIDAS AG, BIRCH HILL EQUITY PARTNERS MANAGEMENT INC. CONSUMER & RETAIL $110
THERE WERE 6 UNDISCLOSED DEALS THAT WERE NOT INCLUDED IN THIS TABLE
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 24
TOP DISCLOSED PE EXITS IN QUÉBEC // 2017
SELLER COMPANY NAME BUYER $ MIL.
APAX PARTNERS GARDA WORLD SECURITY CORP. RHONE CAPITAL $2,200
CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS BEAUFIELD RESOURCES NA - SALE OF SHARES ON PUBLIC MARKET $0.2
CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS FALCO RESOURCES LTD. NA - SALE OF SHARES ON PUBLIC MARKET $0.2
CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS CARTIER RESOURCES INC NA - SALE OF SHARES ON PUBLIC MARKET $0.2
NOTE: There were 97 additional undisclosed exits
from Québec-based companies
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 25
# Deals $ Millions*
Fonds de solidarité FTQ
Capital Régional et Coopératif Desjardins
Fondaction CSN
Caisse de dépôt et placement du Québec
Investissement Québec
XPND Capital
BDC Capital Inc.
Novacap Investments Inc.
128
116
33
31
29
10
8
5
$4,171
$832
$434
$4,198
$877
$30
$123
$1,236
MOST ACTIVE PE INVESTORS IN QUÉBEC // 2017
* TOTAL DEAL VALUES – INCLUDES ALL PARTICIPATING INVESTORS
most active PE investor
128 DEALSFonds de solidarité FTQ
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 26
CVCA METHODOLOGY // VENTURE CAPITAL
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)
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
QUÉBEC ADMINISTRATIVE REGIONS
NORD-DU-QUÉBEC / ABITIBI-TÉMISCAMINGUE
OUTAOUAIS
LAURENTIDES
LAVAL
MONTRÉAL
MONTÉRÉGIE
LANAUDIÈRE
MAURICIE
ESTRIE
CENTRE-DU-QUÉBEC
QUÉBEC
CHAUDIÈRE-APPALACHES
SAGUENAY-LAC-ST-JEAN/ CÔTE-NORD
BAS-SAINT-LAURENT
GASPÉSIE/ÎLES-DE-LA-MADELEINE
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 27
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
QUÉBEC ADMINISTRATIVE REGIONS
NORD-DU-QUÉBEC / ABITIBI-TÉMISCAMINGUE
OUTAOUAIS
LAURENTIDES
LAVAL
MONTRÉAL
MONTÉRÉGIE
LANAUDIÈRE
MAURICIE
ESTRIE
CENTRE-DU-QUÉBEC
QUÉBEC
CHAUDIÈRE-APPALACHES
SAGUENAY-LAC-ST-JEAN/ CÔTE-NORD
BAS-SAINT-LAURENT
GASPÉSIE/ÎLES-DE-LA-MADELEINE
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 28
CVCA METHODOLOGY // PRIVATE EQUITY
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
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
continued
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 | 29
CVCA/RÉSEAU CAPITAL 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
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 KORNACKI Research Analyst
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 industry 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 private 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
About Réseau CapitalRéseau Capital, the Québec Venture Capital and Private Equity Association, is the only private equity association that brings together all stakeholders involved in the Québec investment chain. The mission of Réseau Capital is to contribute to the development and efficient operation of the private equity industry, which plays a major role in the development and financing of businesses in Québec.
Founded in 1989, Réseau Capital represents private equity, tax-advantaged and public investment companies as well as banks, accounting and law firms, along with many professionals working in the field.
To arrange for an interview, please contact:Catherine Berbery | 514-880-2372 | [email protected]
For more information, visit reseaucapital.com
@reseaucapital Réseau Capital
Espace CDPQ – 3 Place Ville-Marie, suite 12350, Level L, Montréal, QC H3B 0E7
To obtain estimates for additional custom InfoBase data reports please contact [email protected]