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

110122

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

17727

1,379

647

13542

ICT Life  Sciences Clean  Tech AgriBusiness

2013 2014 2015

#  Deals $  Millions

235

54 396

270

7946

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  &  Services4%

#  Share

19252

28

25

1612

Activity  by  Stages  – 2015  

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85

636

931

61133

794 785

88154

1,160

530

129

Seed Early  Stage Later  Stage Bridge    

2013 2014 2015

#  Deals $  Millions

107129

74

27

137158

78

38

178 178

6478

Seed Early  Stage Later  Stage Bridge    

2013 2014 2015

Exit  Trend

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665   543  

1,343

420  

936  

1,4571,427  

2,957  

4,396

M&A IPO** Total*

2013 2014 2015

#  Deals $  Millions

22

4

31

25

4

3433

4

42

M&A IPO Total*

2013 2014 2015

2015  TOTAL:    42  exits,  $4.4B  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.     50Cynapsus 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  WinbladVenture  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

Chrysalix Energy Venture  Capital 8 105

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 29 174

Fondaction CSN 13 39

OMERS Ventures  Management  Inc. 11 106

Desjardins Venture  Capital  Inc. 7 27

Difference Capital  Finance  Inc. 6 34

TELUS  Ventures 6 27

VC  Firms #  Total  Deals $  Millions*

BDC  Capital  Inc. 107 587

Investissement Québec 35 164

MaRS IAF 25 26

Innovacorp 21 24

New  Brunswick  Innovation   Foundation   (NBIF) 16 7

EDC  Equity 12 89

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*

LaBargeWeinstein   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

*Total  deal  value  of  disclosed  deals.

Top  Disclosed  Exits  – 2015

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VC  Backers Company Acquirer $  MillionsInsight  Venture  Partners,  Bessemer  Venture  Partners,  FirstMarkCapital,  Georgian  Partners,  Felicis Ventures,  OMERS  Ventures, Shopify   Inc. IPO 1,604Vivo  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 1,203Retail  funds* 6 6 351Institutional  fund   1 2 260Accelerator  funds 3 3 20Government  or  quasi-­‐government  funds** 3 3 183Total 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

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• 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.