vc & pe canadian market overview // q1 2019...venture capital & private equity canadian...

VC & PE CANADIAN MARKET OVERVIEW

// Q1 2019

VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2019 | 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 DISCLOSED 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 // PE GROWTH DEALS ONLY .......................................................... 20 PRIVATE EQUITY HEAT MAP // ALL PE DEALS .................................................................................. 21 QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY ............................................................... 22 TOP 10 DISCLOSED CANADIAN PE DEALS ....................................................................................... 23 PE ACTIVITY BY DEAL SIZE .................................................................................................................... 24 TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES ............................................................ 25 PE SECTOR BREAKDOWN ...................................................................................................................... 26 PE EXITS ....................................................................................................................................................... 27 TOP DISCLOSED CANADIAN PE EXITS .............................................................................................. 28MOST ACTIVE PE INVESTORS ............................................................................................................... 29

CVCA METHODOLOGY ................................................................................................ 30 VENTURE CAPITAL ................................................................................................................................... 30 PRIVATE EQUITY .................................................................................................................................. 31, 32

AUTHORS, ABOUT CVCA AND CONTACT INFO ..................................................... 33


If you would like to have your firm included in future reports, please contact either [email protected] or [email protected]

CVCA thanks the following firms who participated in its Q1 2019 survey.

PARTICIPATING DATA CONTRIBUTORS

Accelerate Fund

Amorchem Venture Fund

Anges Quebec

Anges Quebec Capital

Arctern Ventures

AVAC Ltd.

Avrio Ventures Management Corp

Azure Capital Partners

BCF Ventures

Build Ventures

CIBC Innovation Banking

CIC Capital Ventures

CTI Life Sciences

Cycle Capital Management/EcoFuel

Emerald Technology Ventures

EnerTech Capital

Espresso Capital Ltd.

Evok Innovations

Ferst Capital

Fight Against Cancer Innovation Trust

First Ascent Ventures

Freycinet Ventures

Golden Venture Partners

Good News Ventures

GreenSoil Investments

iGan Partners

InnoStart Ventures

Innovacorp

inovia Capital

Investeco Capital Corp

Island Capital Partners

Luge Capital

Lumira Ventures

MaRS Catalyst Fund

MaRS IAF

McRock Capital

Mistral VP

New Brunswick Innovation Foundation

Northumberland CFDC

OMERS Ventures

Ontario Capital Growth Corporation

Panache Ventures

Pangaea Ventures

Pelorus Venture Capital Ltd.

Quantius

Quark Venture

Real Ventures

Relay Ventures

Renewal Funds

Roadmap Capital

Round13

ScaleUP Ventures

StandUp Ventures

Tandem Expansion

TandemLaunch

TELUS Ventures

Top Renergy

Trellis Capital

Vancouver Founders Fund

Vanedge Capital Partners

Venbridge Ltd.

VentureLink Funds

Versant Ventures

Version One Ventures

White Star Capital

Whitecap Venture Partners

Yaletown Partners

Venture Capital Firms32 Degrees Capital

AIP Private Capital

ARC Financial

Ardenton Capital Corporation

ATB Capital

BDC Growth Equity

BDC GTC

Birch Hill Equity Partners

CAI Capital Management Co.

Canadian Business Growth Fund

Capital Financière Agricole

Clairvest Group Inc.

Clearspring Capital Partners

Export Development Canada (EDC)

First West Capital

Founders Group of Food Companies Inc.

Fulcrum Capital Partners

GrowthWorks Capital

Highland West Capital

InstarAGF Asset Management

Ironbridge Equity Partners

Kayne Capital

Killick Capital Inc.

Lex Capital Management

m2s Capital

Mink Capital

Mosaic Capital Corporation

Novacap Management Inc.

OMERS Private Equity Inc.

PenderFund Capital Management

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

TriWest Capital Partners

VERTU Capital

Vistara Capital Partners

Westcap Mgt. Ltd

Western Investment Company of Canada Limited

Private Equity & LSVCC FirmsAlberta Teachers’ Retirement Fund (ATRF)

BDC Capital Inc

Bluesky Equities

BMO Bank of Montreal (BMO Capital Partners)

Caisse de dépôt et placement du Québec (CDPQ)

Dancap Private Equity Inc

Desjardins Capital

Fondaction CSN

Fonds de solidarité FTQ

Fonds de solidarité FTQ (Regional)

Investissement Quebec

Kensington Capital Partners Limited

Northleaf Capital Partners

Ontario Teachers’ Pension Plan (OTPP)

Teralys Capital

Limited Partners


FOREWORD

Canadian VC Experiences Billion-Dollar First Quarter And The Fifth Billion-Dollar Quarter In The Last Six Years; PE Experiences Sluggish Start To 2019

VENTURE CAPITALIn the first three months of 2019, the Canadian venture capital (VC) industry invested CAD $1B across 142 deals. This is the fifth billion-dollar quarter since 2013 and is almost double (48% higher) the investments made in the same quarter in 2018.

There were seven mega-deals ($50M+) in the first quarter which accounted for a 57% share of all dollars invested. Three noteworthy mega-deals include Toronto-based Vena Solutions Canada Incorporated’s CAD $115M growth equity financing from US investors; Squamish-based Carbon Engineering Limited’s CAD $90M round from two US cleantech investors; and Montreal-based Enerkem’s CAD $76M round from a syndicate which included Cycle Capital Management/Ecofuel, Fondaction CSN, Fonds de solidarite FTQ, and National Bank of Canada.

Montreal-based Lightspeed POS Inc. completed the largest and only IPO exit since 2017 with a market capitalization of CAD $1.1B.

“It’s great to see continued momentum across the Canadian VC industry with this fifth billion-dollar quarter in less than 10 years,” said Kim Furlong, Chief Executive Officer, CVCA. “Lightspeed’s exit this quarter is another proud accomplishment for the industry. We will be keeping an eye on the exit environment throughout the remainder of 2019.”

On trend with historical geographical allotment of VC investment, Ontario-based companies received the bulk of VC dollars in Q1 (46% or CAD $481M) while Quebec-based companies received 19% (CAD $198M) followed by British Columbia-based companies receiving a 17% share (CAD $173M).

The top three sectors in Q1 were Information and Communication Technologies (ICT) with a 59% share of total dollars invested (CAD $616M over 80 deals) followed by Cleantech’s 19% share (CAD $201M over 11 deals) and Life Science with 14% ($145M over 26 deals).

PRIVATE EQUITYPE Investment was 72% lower in the first quarter of 2019 compared to the same period last year with CAD $1.9B invested over 130 deals. The pace of private equity also slowed in the first quarter with only 9 M&A exits totalling CAD $270M.

The largest disclosed deal in Q1 2019 was Goodlife Fitness Centres Inc.’s CAD $100M debt financing from Penfund Inc.

“Our private equity members are reporting that the current high valuation environment continues to impact their deal flow,” said Kim Furlong, Chief Executive Officer, Canadian Venture Capital and Private Equity Association. “While the first quarter was slow, we anticipate that private equity activity will rebound in subsequent quarters.”

A fifth of all PE deals in the first quarter (27 out of 130) were closed in the Information and Communication Technologies (ICT) sector totaling CAD $929M, representing almost half of all invested dollars. The Industrial & Manufacturing and Consumer & Retail sectors closed 43 deals combined receiving CAD $562M or 29% of all dollars.

Four out of every 10 deals in Q1 2019 were debt transactions with deal sizes averaging CAD $11.8M, which is one and a half times higher than Q1 2018.

Seven VC mega-deals of $50M+ in the first quarter accounted for 57% share of all dollars invested; Private Equity Deal Flow and Exits Slow in First Quarter

MAybe Background is this colour?

VENTURE CAPITAL CANADIAN MARKET

OVERVIEW // Q1 2019


VENTURE CAPITAL HIGHLIGHTS // Q1 2019

Key Findings

$1B was invested over 142 deals in the first quarter of 2019 which is 48% higher than the same quarter in 2018

The average deal size was $7.4M, a 56% increase from Q1 last year and a 34% increase compared to the average deal size during the 5-year period between 2014-2018 ($5.5M)

There was a total of seven $50M+ mega-deals which accounted for a 57% share of total dollars invested. Among those deals was:

Toronto-based Vena Solutions Canada Inc.’s $115M growth equity financing from US investors

Squamish-based Carbon Engineering Ltd.’s $90M round from two US cleantech investors

Montreal-based Enerkem’s $76M round from a syndicate of investors including Cycle Capital Management/Ecofuel, Fondaction CSN, Fonds de solidarité FTQ, National Bank of Canada

Deals between $5M-$20M totalled $234M representing a 22% share of total dollars invested

Ontario-based companies received 46% of investment ($481M) while Quebec-based companies received 19% ($198M) followed by BC-based companies with a 17% ($173M) share

Toronto-based companies received 40% ($416M over 47 deals) of total dollars disbursed, with Calgary-based companies receiving 15% ($154M over 5 deals) and Montreal-based companies a 14% share ($146M over 35 deals)

ICT companies grabbed 59% of total dollars invested in Q1 2019 ($619M over 80 deals) with cleantech receiving a 19% share ($201M over 11 deals). Life sciences companies received a 14% share ($145M over 26 deals)

Later stage companies received 47% ($493M over 53 deals) of total investment, the largest share since 2014; growth equity deals accounted for 13% ($138M over 4 deals)

Lightspeed POS Inc. completed the largest and only IPO exit since 2017, listing on TMX with a market cap of $1.1B


13 51

185

54$198M

$481MOntario

$173MBC

$154MAlberta

Québec

Nova Scotia$16M

New Brunswick$6M

$19MSaskatchewan

46Prince Edward

Island

$0.4M

VENTURE CAPITAL HEAT MAP // Q1 2019

$1btotal 142 deals

total #


$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1000

0

20

40

60

80

100

120

140

160

180

200

220

240

260

$1,100

$1,200

$1,300

Q4Q3Q2Q1

$432

$665

$621

$555

134140 142

129

127

147

Q2Q1

$960

$709

Q3$7

20Q4

$839

Q2Q1

$628

$908

Q3

$1,15

4

Q4

$1,0

99

Q1

$708

Q2 Q3

$1,0

58

$717

Q4

$1,3

34

Q1

$1,0

46

127

134 134

154 154 158150

168

132142

170

127

TOTAL:545 DEALS

$2.3B

TOTAL:535 DEALS

$3.2B

TOTAL:600 DEALS

$3.8B

TOTAL:620 DEALS

$3.8B

TOTAL:142 DEALS

$1B

$ Millions Invested # Deals

20162015 2017 2018 2019

QUARTER-OVER-QUARTER VC INVESTMENT ACTIVITY


VC ACTIVITY BY DEAL SIZE // Q1 2019

Total Deals $ Millions

< $100K

$100K - $500K

$500K - $1M

$1M - $5M

$5M - $20M

$20M - $50M

$50M +

9

26

15

52

22

3

7

$0.4

$7

$10

$122

$234

$77

$596

$5mwere under

7 out of every 10 deals


TOP DISCLOSED CANADIAN VC DEALS // Q1 2019

company name province Disclosed VC Firm(s) sector stage $ mil

VENA SOLUTIONS CANADA INC. ONTARIO CENTANA GROWTH PARTNERS, JMI EQUITY ICT GROWTH EQUITY $115

CARBON ENGINEERING LTD. BC CHEVRON TECHNOLOGY VENTURES LLC CLEANTECH LATER STAGE $90

ENERKEM INC. QUÉBECBRAEMAR ENERGY VENTURES, CYCLE CAPITAL MANAGEMENT/ECOFUEL, FONDACTION CSN, FONDS DE SOLIDARITÉ FTQ, INVESTISSEMENT QUÉBEC, NATIONAL BANK OF CANADA, RHO CANADA VENTURES

CLEANTECH LATER STAGE $76

TURNSTONE BIOLOGICS INC. ONTARIOF-PRIME CAPITAL PARTNERS, FIGHT AGAINST CANCER INNOVATION TRUST, FONDS DE SOLIDARITÉ FTQ, ORBIMED ADVISORS, LLC, TERALYS CAPITAL, VERSANT VENTURE MANAGEMENT, LLC

LIFE SCIENCES LATER STAGE $56

PERASO TECHNOLOGIES INC ONTARIO ROADMAP CAPITAL INC. ICT LATER STAGE $56

FIIX SOFTWARE ONTARIO BUILDGROUP MANAGEMENT, LLC, GEORGIAN PARTNERS INC. ICT LATER STAGE $53

AVIDBOTS CORP. ONTARIO500 STARTUPS, BDC CAPITAL INC., GGV CAPITAL, KENSINGTON CAPITAL PARTNERS LIMITED, REAL VENTURES, SOSVENTURES INVESTMENTS LTD, TRUE VENTURES

ICT EARLY STAGE $31

CMDWATCH SECURITY INC. BC AMPLIFY PARTNERS, GV ICT EARLY STAGE $20


10

TOP 10 CANADIAN CITIES ADMINISTRATIVE CENTRES // Q1 2019

47 DEALS $416

$146

$67

$6

$154

$26

$19

$5

$15

$0.4


1. Toronto

2. Montréal

3. Vancouver

4. Fredericton

5. Calgary

6. Laval

7. Ottawa

8. Quebec

9. Saskatoon

10. Halifax

47

35

13

6

5

4

4

4

2

2

1

5

26

49

3

7

8

#1 toronto $416 m


VC SECTOR BREAKDOWN // 2015–Q1 2019

0

40

80120

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 20172015 20162015 20162015 2015

$1,9

80

$20

8

$18

5

2016 2018201820182018 Q12019

Q12019

Q12019

Q12019

328

333

380

113

104

$72

1

$73

3

$69

8

$1,3

17

105 103

26 20 44 3550

27 1211

25 2747

$42

$2,

446

$27

8

$10

2

$40

9

$98

390

80

$65

6

$13

8

$2,

617

$61

9

$14

5

$20

1

$40

ICT AGRIBUSINESSLIFE SCIENCES CLEANTECH



VC STAGE BREAKDOWN // 2015–Q1 2019

0

30

60

90120

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

20162015 20162015

$159 $2

12

$875

$1,5

94

$1,9

53

$1,3

83

20172017

220

262

232

190

45

134

92 53

$1,5

86

206

$236

2018 Q12019

$307

$54

2018 Q12019

20162015 2017 2018 Q12019

20162015 2017 2018 Q12019

$1,5

82

$362 $4

93

$1,7

29

214

180 178

154

39

196

$30

1 10 4

$161

$138

$1,2

10


SEED LATER STAGEEARLY STAGE GROWTH EQUITY


VC EXITS // 2015– Q1 2019

IPO/RTO**

$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

20162015 20162015

$1,5

24

$584

$1,2

91

20172017

$828

$293

$1,0

83

2018 Q12019

2018 Q12019

43

32

6

0 0 1

3536

10

3

$2,15

0

$2,9

45

Exit Value ($ Millions) # Exits * Includes transactions with undisclosed values ** IPO valuation

M&A*


TOP DISCLOSED VC EXITS // Q1 2019

There were 9 additional M&A exits totalling $28M

vc investors company sector exit transaction acquired by close date $ mil.CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), INOVIA CAPITAL INC., TERALYS CAPITAL, INVESTISSEMENT QUÉBEC

LIGHTSPEED POS INC. ICT IPO IPO ON TMX 3/8/2019 $1,083

MARS IAF, SUMMIT PARTNERS AERYON LABS INC. ICT M&A FLIR SYSTEMS 1/282019 $265


MOST ACTIVE VC FIRMS / FUNDS // Q1 2019

MOST ACTIVE PRIVATE INDEPENDENT FIRMS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

REAL VENTURES 7 $75

CYCLE CAPITAL MANAGEMENT/ECOFUEL 6 $96

INOVIA CAPITAL 6 $14

PANACHE VENTURES 6 $7

IGAN PARTNERS INC. 4 $24

AMORCHEM 4 $2

RELAY VENTURES 3 $20

LUMIRA VENTURES 3 $16

AVRIO VENTURES MANAGEMENT CORP. 3 $15

GOOD NEWS VENTURES 3 $1

MOST ACTIVE GOVERNMENT FUNDS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

BDC CAPITAL 11 $63

INVESTISSEMENT QUÉBEC 8 $107

MARS IAF 8 $14

FONDACTION CSN 3 $82

ANGES QUÉBEC 3 $8

NEW BRUNSWICK INNOVATION FOUNDATION (NBIF) 3 $2

MOST ACTIVE PENSION, RETAIL, CORPORATE & OTHER PUBLIC FUNDS # ROUNDS

SIZE OF TOTAL ROUNDS*

(CDN$ MIL)

DESJARDINS CAPITAL 13 $35

FONDS DE SOLIDARITÉ FTQ 8 $161

ANGES QUÉBEC CAPITAL 3 $7

MOST ACTIVE FIRMS IN VC DEBT DEALS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

ESPRESSO CAPITAL LTD. 14 $8

DESJARDINS CAPITAL 6 $3

QUANTIUS INC. 4 $2

FONDS DE SOLIDARITÉ FTQ 2 $4

CIBC INNOVATION BANKING 2 $4

* Total deal values - includes all participating investors

# Rounds

Desjardins Capital

BDC Capital


Investissement Québec

MaRS IAF

Real Ventures

Cycle Capital Management/Ecofuel

inovia Capital

Panache Ventures

13118887666

Size of Total Rounds* (Cdn$ mil)

$35 $63 $161 $107 $14 $75 $96 $14 $7

PRIVATE EQUITY CANADIAN MARKET

OVERVIEW // Q1 2019


PRIVATE EQUITY HIGHLIGHTS // Q1 2019

$1.9B was invested over 130 deals in the first quarter of 2019, 72% lower than the same quarter last year

All deals with disclosed values were below $500M with 62% (80 out of 130) of all deals with values less than $25M

The largest disclosed deal included:

$100M debt financing to GoodLife Fitness Centers Inc. from Penfund Inc.

19% (25 deals totalling $840M) of all PE deals went to Montreal-based companies, with Toronto-based companies receiving a 15% share (20 deals totalling $314M)

A fifth of all deals (27 out of 130) were closed in ICT sector companies totalling $929M, almost half of all total dollars disbursed; 43 deals closed in the Industrial & Manufacturing and Consumer & Retail sectors combined receiving a total of $562M or 29% of all dollars.

Four out of every 10 were debt deals with an average deal size of $11.8M which is 1.5 times greater than last year

Q1 saw 9 M&A exits (totalling $270M)

Key Findings


74

$6MAlberta

$54MOntario

NAQuébec

$199MBC

13

13

$259Mtotal 37 deals

PRIVATE EQUITY HEAT MAP BUYOUT & ADD-ON DEALS ONLY // Q1 2019

total #


813

1

$0.2MSaskatchewan

$91MAlberta

$259MOntario

$56mQuébec

1

$405Mtotal 23 deals

PRIVATE EQUITY HEAT MAP PE GROWTH DEALS ONLY // Q1 2019

total #


370

918

30$248M

BC $149MAlberta $3M

Saskatchewan

$508mOntario

$1bQuébec

$1.9btotal

130 dealstotal #

PRIVATE EQUITY HEAT MAP ALL PE DEALS // Q1 2019


TOTAL:426 DEALS

$22.9B

TOTAL:543 DEALS

$13.8B

TOTAL:613 DEALS

$26.4B

TOTAL:599 DEALS

$22.8B

TOTAL:130 DEALS

$1.9B

20162015 2017 2018

QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY

$0

$3,000

$4,500

$1,500

$6,000

$9,000

$13,500

$7,500

$12,000

$10,500

$15,000

0

20

40

60

80

100

120

140

160

180

200

Q4Q3Q2Q1 Q2Q1 Q3 Q4 Q2Q1 Q3 Q4 Q1 Q2 Q3 Q4

$7,0

53

$1,8

69

$11,3

75

$2,6

30

$3,2

21

$3,3

70

91

104117

114

124

145

134

139

$3,0

38

$4,17

9

$5,3

29

114

179167

153

158

165

124 130

152

$8,8

12

$7,5

54

$4,6

73

$6,7

67

$8,0

93

$1,9

59

$5,9

78

Q1

$1,9

18


2019


TOP 10 DISCLOSED CANADIAN PE DEALS // Q1 2019

company name province firms involved in transaction sector $ mil

GOODLIFE FITNESS CENTERS, INC. ONTARIO PENFUND INC. CONSUMER & RETAIL $100

STEEL REEF INFRASTRUCTURE CORP. ALBERTA INSTARAGF ASSET MANAGEMENT INC., PFM CAPITAL INC. OIL & GAS, POWER $91

ESENTIRE, INC. ONTARIO EDISON PARTNERS, GEORGIAN PARTNERS INC., WARBURG PINCUS LLC ICT $63

ZAFIN GLOBAL HOLDINGS CORP. ONTARIO ACCENTURE PLC, BEEDIE CAPITAL PARTNERS, VISTARA CAPITAL PARTNERS ICT $23

HORTAU INC. QUÉBEC EDC EQUITY, FONDS DE SOLIDARITÉ FTQ AGRI-FORESTRY $20

There were 11 undisclosed deals totaling $1.4B that were not included in this table


PE ACTIVITY BY DEAL SIZE // Q1 2019

0

40

80

120

160

200

240

280

320

400

360

$0

$16,000

$1,600

$3,200

$4,800

$6,400

$8,000

$9,600

$11,200

$12,800

$14,400

20162015 20162015 20162015 2015

$91

0

$1,2

90

$6,

321

$3,

212

$5,

861

$3,

106 $

4,79

7

2016

$7,

630

$50

9

20162015 20162015

$4,

782

$4,

034

$3,

250

$1,6

27 $3,

300

$4,

800

201720172017201720172017

183

362

57 49 4731

14 7 11419

3 3 2 1 0 000 1 3

$2,

818

$2,

167

$3,

328

$1,4

99

2018 Q12019

Q12019

Q12019

Q12019

Q12019

Q12019

368

395

8067

9 528

2018

$2,

044

2018

$4,

093

2018 2018 2018

$12

,749

$1,7

76

$28

7

$50

1

$1,1

29

1 1

< $25M $100M - $500M $1B - $2.5B$25M - $100M $500M - $1B $2.5B+



TOP 10 CANADIAN CITIES ADMINISTRATIVE CENTRES // Q1 2019


1. Montreal

2. Toronto

3. Québec

4. Vancouver

5. Calgary

6. Montérégie

7. Chaudière-Appalaches

8. Saguenay-Lac-St-Jean/Côte-Nord

9. Bas-Saint-Laurent

10. Centre-du-Québec

25

20

11

8

7

7

5

5

4

4

$840

$314

$19

$50

$144

$53

$30

$8

$30

$14

#1 montréal $840m 25 DEALS

2

5 8

10

4

3

1

9

67


PE SECTOR BREAKDOWN // Q1 2019

27

25

18

13

11

9

8

5

5

4

3

1

1

# Deals $ Millions

ICT

Industrial & Manufacturing

Consumer & Retail

Business Products & Services

Agri-Forestry

Life Sciences

Automotive & Transportation

Oil & Gas, Power

Mining & Resources

CleanTech

Financial

Real Estate

Others

$929

$88

$474

$134

$43

$4

$26

$98

$75

$26

$2

$15

$2

most active sector

ict 27 deals


PE EXITS // 2015–Q1 2019

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

20162015 20162015 20162015

$1,7

11

201720172017

$3,7

10

2018 Q12019

Q12019

$12,

812

$7,0

17

$2,7

90

61 4

5

50

60

9

136

7 4 8

00 0

2018 2018 Q12019

82

$8,4

64

$2,16

1

$3,4

08

$1,6

72

$4,8

00

$2,5

53

$270

IPO/RTO** M&A* SECONDARY BUYOUT*

* includes transactions with undisclosed values ** IPO valuationExit Value ($ Millions) # Exits


TOP DISCLOSED CANADIAN PE EXITS // Q1 2019

4Refuel CANADA LPKELSO & COMPANY

bought by Finning international INC. $260m#1

seller company name buyer $ mil

KELSO & COMPANY 4REFUEL CANADA LP FINNING INTERNATIONAL INC. $260


MOST ACTIVE PE INVESTORS // Q1 2019

34

32

11

10

5

4

4

# Deals $ Millions*

BDC Capital

Desjardins Capital


Fondaction CSN

PFM Capital Inc.

Caisse de dépôt et placement du Québec (CDPQ)

Investissement Québec

$106

$111

$773

$39

$106

$158

$76

* Total deal values – includes all participating investors

most active pe firm

bdc Capital34 deals


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)

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.

GROWTH SIGNIFICANT MINORITY INVESTMENT TO DRIVE GROWTH AND SCALE WHICH CAN BE COMBINED WITH A SECONDARY TRANSACTION TO FACILITATE LIQUIDITY FOR EXISTING VC INVESTORS

ICT COMPANY HAS A CONCEPT OR PRODUCT UNDER DEVELOPMENT, BUT IS PROBABLY NOT FULLY OPERATIONAL.

LIFE SCIENCES COMPANY HAS A PRODUCT OR SERVICE IN TESTING OR PILOT PRODUCTION. IN SOME CASES, THE PRODUCT MAY BE COMMERCIALLY AVAILABLE.

CLEANTECH PRODUCT OR SERVICE IN PRODUCTION AND COMMERCIALLY AVAILABLE. COMPANY IS GENERATING ON-GOING REVENUE, BUT NOT NECESSARILY, PROFITABLE.

AGRIBUSINESS TRADITIONAL AND ADVANCED AGRICULTURAL TECHNOLOGIES AND SERVICES

vc development stages

vc sectors


CVCA METHODOLOGY // PRIVATE EQUITY

PRIVATE EQUITY DATA:Dataset includes only completed private equity deals (announced but yet to be completed deals are not included)

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

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

pe deal type

pe sectors


CVCA METHODOLOGY // PRIVATE EQUITY

continued

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

pe sectors

ABOUT AND 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 Psychology from the University of Toronto.

[email protected] | 416-487-0519 ext. 202

DARRELL PINTOVP, Research & Industry

Advancement

DAVID KORNACKIAssociate,

Research & Product

About CVCAWe’re how collaboration happens and how innovation and growth thrive.

The CVCA is Canada’s professional association for the venture capital and private equity industry. Our services and support establish a favourable and competitive ecosystem and lay the foundation for greater collaboration, innovation, growth and market intelligence. We strongly advocate for fair and competitive policy to keep our industry energized and future-ready.

From coast to coast, we bring members together; connecting private capital professionals to eachother generating meaningful partnerships, enabling connections to foster and knowledge to prosper.

We’re also the nation’s ultimate resource for data on Canadian private capital investments.

Please visit cvca.ca

@CVCACanada CVCA

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]

vc & pe canadian market overview // q1 2019...venture capital & private equity canadian...

Documents