OTTAWA, May 20, 2014 /CNW/ - CVCA- Canada's Venture Capital Association releases private capital data for
Q1 2014 that shows private equity in Canada doubled, while venture
capital continued its strong growth.
The amount of private equity invested in the first quarter of 2014
doubled year over year. Private equity investments totaled $4.6 billion
in the first three quarters of 2014, double the $2.3 billion in values
reported at the same time in 2013. The number of deals done in Q1 was
slightly higher year over year as well, totaling 77, up 3% from Q1
The significant growth in the amount invested in Q1 2014 owed to a
number of major transactions. The most predominant of these included
two previously-announced $1 billion-plus deals (representing 56% of all
disbursements) - the acquisitions of Patheon Inc. and Atrium
While these two deals led to the health and life sciences representing
the majority of amount invested, actual deal activity was led by oil
and gas (13 deals), manufacturing (12 deals) and IT (9 deals). These
three sectors represented a combined 44% of the total number of deals.
Domestic private equity investors continue to account for the
significant majority of the activity, representing 76% of the total
deals in Canada in Q1. Canadian funds were also generally more active
in global deal-making. Canadian funds led or participated in a total of
19 transactions abroad, with these reflecting values of approximately
$3.1 billion in Q1 2014 versus $2.1 billion in Q1 2013.
Following record-breaking fund-raising results in 2013, Canadian private
equity sustained high levels of market activity into the first quarter
of 2014. New capital committed totaled $3.5 billion in Q1 2014, which
is more than triple the $1.1 billion committed to funds at the same
time in 2013.
"We are very pleased to see the ongoing, robust growth in private equity
investment in Canada that is helping fuel productivity in Canada," said
Mike Woollatt, CEO of CVCA. "The Canadian private equity industry is
seeing substantial returns based on solid investments and that is in
turn being reflected in the very strong fundraising activity as well."
The amount of venture capital invested in Q1 2014 totaled $378 million
spread over 122 deals. This represented a moderate 2% year over year
growth in the amount invested, however the number of deals were up a
substantial 16% over Q1 2013.
The first three months of the year saw several major financings,
including those backing Edmonton-based Aurinia Pharmaceuticals,
Vancouver-based BuildDirect, and Dorval, Québec -based Clementia
Analogous to the larger increase in number of deals versus the amount
invested, the average deal size in Q1 was relatively small. Both
Canadian investors ($1.4 million average deal size) and US investors
($3.9 million average deal size) showed a significant decrease in
average deal size from 2013. Only life sciences saw an increase in deal
size, while information technology, clean tech and traditional sectors
In terms of investment rounds, Series A continues to receive the lions
share of venture capital investment, representing 37% of the 122 deals
in Q1. Q1 2014 also saw more investment from outside Canada and the
US, with an increased share of global venture capital investment into
Information technology and life sciences saw the biggest growth in
investments and drove venture capital investment in Q1, representing a
combined 87% of total invested. Within life sciences, human biotech is
dominating the activity, representing nearly 90% of the life science
investment in Q1. This reflects a similar trend to that seen in the US
On the fundraising side, the news was also positive, particularly in
private VC, which raised $393 million in Q1 2014, representing 56% of
all of 2013 ($699 million).
"Venture capital is certainly on a prolonged uptick in Canada, which is
great for Canadian innovation," said Mike Woollatt, CEO of CVCA.
"Canada's venture capital has a long way to go to solve our relative
undercapitalization, but these numbers are heartening."
The CVCA is the voice of Canada's venture capital and private equity
industry. The CVCA's members manage the vast majority of private
capital that is designated to grow Canadian businesses. The CVCA
fosters professional development, networking, communication, research
and education, and represents the venture capital and private equity
industry in public policy matters. The CVCA was founded in 1974. www.cvca.ca
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Link to more detailed data decks: VC data deck Buyout & PE Data Deck
SOURCE: CVCA - Canada's Venture Capital & Private Equity Association
For further information:
For more detailed data and or to arrange an interview with Mike Woollatt, CEO of CVCA, please contact Lauren Linton, Director of Marketing, firstname.lastname@example.org.