Canada Venture Capital Market OverviewFirst Nine Months of 2015

.caPage | 2

.ca

Deals by Quarter

Page | 3

84 80

101 97111

92

109119

135 132143

0

20

40

60

80

100

120

140

160

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

# Deals

2013 2014 2015

411

336

601543

360411

648613

405

609 615

0

100

200

300

400

500

600

700

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

$ Millions Invested

2014 20152013

.ca

Deals by Province – First 3Q 2015

Page | 4

ON43%

QC30%

BC18%

AB6%

Atlantic3%

$ Share

ON37%

QC34%

BC15%

Atlantic9%

AB4%

SK-MB1%

# Share

.ca

Top VC Sectors – First 3Q 2015

Page | 5

17

33

36

86

238

0 50 100 150 200 250

AgriBusiness

Others

Clean Tech

Life Sciences

ICT

# Deals

ICT58%

Life Sciences21%

Clean Tech9%

AgriBusiness4%

Others8%

# Share

.ca

Top VC Sectors – First 3Q 2015

Page | 6

ICT58%

Life Sciences31%

Clean Tech5%

Agri Business1%

Other4%

$ Share

20

64

86

511

947

0 200 400 600 800 1,000

Agri Business

Others

Clean Tech

Life Sciences

ICT

$ Millions

.ca

VC Stage Breakdown – First 3Q 2015

Page | 7

65

99

241

381

843

0 200 400 600 800 1,000

Bridge

Seed

Other

Later Stage

Early Stage

$ Millions

Seed132

Early Stage131

Later Stage50

Bridge 63

Others 34

# Deals

.ca

Top 10 Canadian VC Deals – First 3Q 2015

Page | 8

Company Province Disclosed VC Firm(s) $ Millions

Lightspeed POS Inc. Québec Caisse de dépôt et placement du Québec, Investissement Québec, Accel Partners, Teralys, iNoviaCapital

79

Clementia Pharmaceuticals Inc.

Québec New Enterprise Associates (NEA), BDC Capital, EcoR1 Capital, Janus Capital Management, OrbiMed Advisors, RA Capital, Rock Springs Capital

74

Kik Interactive Inc Ontario Tencent Holdings 66

Resverlogix Corp. Alberta Eastern Capital, Shenzhen Hepalink Pharmaceutical Co. 50

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

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

35

Cymax Stores Inc. BC BDC Capital, Frind Holdings 33

Highland Therapeutics Inc. Ontario Eastern Capital 31

Real Matters Inc. Ontario Whitecap Venture Partners, Radar Capital, Urbana Corporation 30

.ca

Most Active VC Firms – First 3Q 2015

Page | 9

VC Firms # Total Deals $ Millions*

Real Ventures 61 106

iNovia Capital Inc. 33 457

Relay Ventures 19 161

Cycle Capital Management (CCM) Inc. 14 33

Yaletown Venture Partners 9 42

Avrio Ventures Management Corp. 9 12

Lumira Capital Investment Management Inc. 8 144

Wellington Financial LP 8 48

Pangaea Ventures Ltd. 7 40

EnerTech Capital 6 47

Vanedge Capital Partners Ltd 6 29

Rho Canada Ventures 6 27

iGan Partners Inc. 6 24

Private Independent Firms

*Total deal values – includes all participating investors.

.ca

Most Active VC Firms – First 3Q 2015

Page | 10

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.

.ca

Most Active Foreign Firms – First 3Q 2015

Page | 11

VC Firms# Total Deals

$ Millions*

SR One 8 87

Bessemer Venture Partners 6 78

ff Asset Management LLC 6 69

Domain Associates, L.L.C. 4 72

Nexus Venture Partners 4 40

White Star Capital Inc. 4 18

Atlas Venture 3 51

*Total deal values – includes all participating investors.

.ca

Most Active Legal Firms – First 3Q 2015

Page | 12

Legal Firms # Total Deals $ Millions*

LaBarge Weinstein LLP 19 168

Gowling Lafleur Henderson LLP 10 162

Borden Ladner Gervais LLP 9 28

Osler, Hoskin and Harcourt LLP 7 112

Cox & Palmer 4 1

McCarthy Tétrault LLP 4 25

Fasken Martineau DuMoulin LLP 3 95

Blake, Cassels & Graydon LLP 2 6

McInnes Cooper 2 3

blue HF legal services inc. 2 3

*Total deal values – includes all participating investors.

.ca

Top Disclosed VC Exits – First 3Q 2015

Page | 13

VC Backers Type Company $ Millions

Insight Venture Partners, Bessemer Venture Partners, FirstMarkCapital, Georgian Partners, Felicis Ventures, OMERS Ventures

IPO Shopify Inc. 1,604

Vivo Capital, Frazier Healthcare Ventures, OrbiMed Advisors, Adams Street Partners, RA Capital Management

IPO ProNAi Therapeutics, Inc

634

Highland Capital Partners IPO Davids Tea Inc. 537

Caisse de dépôt et placement du Québec, EDC Equity, EnerTechCapital, Fonds de solidarité, Groupe W, Samsung Venture, Technovator

M&A Distech Controls, Inc. 318

McLean Watson Capital, Desjardins Venture Capital, GTI Capital M&A SkyWave Mobile Communications Inc.

204

Extreme Venture Partners, iNovia Capital, Rho Canada Ventures, Metamorphic Ventures , Mantella Venture Partners, Metamorphic Ventures

M&A Chango Inc. 155

.ca

VC Fundraising – First 3Q 2015

Page | 14

202

221

230

255

430

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500

Corporations

Fund of Funds

Pension Funds

Governments

Individuals/Family Offices

Source of VC Fundraising ($ Millions) Fund Type # Funds Raised ($M)Median

($M)

Private Funds 14 19 909

Retail Funds 5 13 267

Government Funds**

2 2 162

Total 21 34 1,338

Median ($ Millions, private funds) Fund Size Closing

Initial Close (9 funds, 9 closings) 71 30

Subsequent Close (7 funds, 10 closings) 89 22

All Funds (14 funds, 19 closings) 78 29

**Includes BDC Capital internal allocation to a newly capped IT fund.

.ca

CVCA Methodology

Page | 15

• 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.