MONTREAL, Nov. 15, 2011 /CNW Telbec/ - Réseau Capital today published
statistics on venture capital activity in Québec for the third quarter
(Q3) of 2011, as compiled by Thomson Reuters.
Québec's venture capital (VC) deal making increased substantially in the
third quarter of 2011, with $145 million invested in this period, up
81% from the $80 million invested at the same time last year. Québec
companies financed with VC totalled 79, for a 52% increase. As a
result, disbursements amounted to $421 million at the end of September,
surpassing the $370 million invested during the whole of 2010.
Québec-based activity tended to outpace activity elsewhere in the North
American market in the third quarter. Across Canada, levels of activity
rose 51% year over year, with $388 million invested in total. In the
same period, VC market activity in the United States, totalling US$7.2
billion, was up 35%. In addition, Québec led Canadian market trends in
Q3, accounting for 37% of all disbursements, compared with Ontario's
27%. For most of the Québec companies that received funding in the
third quarter, it was their first VC transaction.
According to Geneviève Morin, Co-president of Réseau Capital, "Québec continues to stand out. The strong third-quarter activity has
increased Québec's lead over the rest of Canada and confirmed the
relevance of efforts to cover the entire investment chain, with
complementary activity by different types of fund, including
private-independent funds, retail funds and foreign funds."
BREAKDOWN BY INVESTOR TYPE
This time, private-independent VC funds were in the forefront of
Québec-based activity, at least in dollar terms. Private funds invested
$44 million in 29 companies in Q3 2011, or more than four times the $10
million they invested the year before. Private fund activity reflected
31% of total VC activity, well up from its historical average share of
Labour-sponsored and other retail funds continued to play a vital role
in Québec activity, deploying $23 million to 31 companies in third
quarter, or 16% of total VC invested. Relative to the recent past, U.S.
funds and other foreign investors were somewhat less of a presence in
the Québec market, contributing $20 million, or 14% of total dollar
In the first nine months, new capital commitments to Canadian VC funds
totalled $739 million, just shy of the $741 million committed the year
before. Québec-based funds continued to net the largest share of new
resources, with 42% of the year-to-date total.
According to Geneviève Morin, Co-president of Réseau Capital, "The fund-raising turnaround that took place in the third quarter is
encouraging. After the low point we reached in 2010, it is essential
that the mobilization of capital accelerate so that innovative
companies can access the funds they need to grow, at all stages and in
ACTIVITY BY SECTOR
All technology sectors contributed to the increase in funding. Out in
front was activity in the information technology sectors: 28 IT
companies attracted $57 million, or 40% of all disbursements, and
received 43% more than the $40 million invested in Q3 2010.
Life sciences activity in Québec also increased, with $23 million
invested, a considerable improvement over the $5 million invested in Q3
ACTIVITY BY STAGE
VC activity in Québec continued to be propelled by late-stage company
financings, which accounted for 78% of total dollars invested in the
third quarter. As in past quarters, this trend relied primarily on
firms in expansion mode, 49 of which secured $108 million.
During the same period, seed-stage financings experienced only moderate
growth, with 10 firms garnering $2 million.
About Réseau Capital
Réseau Capital, the Québec Venture Capital Association, was founded in
1989. Its members represent public and private venture capital
companies, as well as private equity firms, banks, angel investors and
firms of professionals working in the industry. Its mission is to
contribute to the development and smooth operation of the investment
chain, and its preferred approaches are training, information,
networking, advocacy and representation.
SOURCE Réseau Capital
For further information:
| Source: Réseau capital || || For information: |
| Geneviève Morin |
Co-president of Réseau capital
Chief Financial and Corporate
| || Robert Pierre Venne |
Media Relations for Réseau capital
Direct line: (514) 993-6260
| Shahir Guindi |
Co-president of Réseau capital
Osler, Hoskin & Harcourt LLP
| || |