MONTREAL, Feb. 19, 2013 /CNW Telbec/ - Activity in venture capital (VC)
fundraising in Québec reached a 10-year peak in 2012 at $924 million,
representing to 52% of the activity in the entire Canadian market.
Moreover, a new trend appears to be emerging: the great majority of
companies financed last year - 58% of the total - were involved in VC
transactions for the first time, drawing in $214 million, or more than
half the dollars invested. These observations are contained in the
annual report on activity in the investment capital industry, compiled
by Thomson Reuters and issued today by Réseau Capital.
"New funds committed to partnerships and to other funds literally
exploded in the past year," notes Jack Chadirdjian, President and Chief
Executive Officer of Réseau Capital. "This is excellent news for
companies seeking this type of financing. With support from the federal
government and its action plan aimed at new investments in venture
capital funds, this record injection of funds raised by the private
sector will further vitalize our industry."
Across Canada, VC funds raised in 2012 amounted to $1.8 billion, up 73%
from the $1.0 billion committed in 2011 and more than in any year since
2002, when commitments totalled $2.5 billion. In Québec, VC fundraising
activity totalled $924 million in 2012, a 67% increase from the $552
million committed in 2011 and more than in any year since 2001, when
the VC funds raised came to $1.5 billion, representing 39% of the
Canadian market as a whole.
VC investments recover in the fourth quarter
The initial decline in VC investments seen in 2012 occurred in the first
half of the year, but activity in Québec rose 7% between July and
December and intensified further in the fourth quarter, rising 15%.
Some $409 million was invested in 2012, with $142 million of this in
the fourth quarter. Several major transactions contributed to this
increase, in particular Montréal-based MethylGene Inc. ($26.1 million),
Québec City-based Coveo Solutions Inc. ($18 million) and Montréal-based
Vantrix Corp. ($13.3 million).
Québec attracted 28% of all VC funds invested in Canada last year, down
from its 32% share in 2011. But in line with the trend toward
intensification of investment as the year advanced, Québec's market
share rose to 37% between July and December.
New recruits and seed-startup companies in the lead
Québec companies seeking VC financing for the first time were dominant
targets in the market in 2012, drawing in $214 million, more than half
the total dollars invested during the year. New investments also
increased 43% compared to the previous year.
Transactions at the seed and startup stages also made a strong comeback
in Québec in 2012. They saw a 24% improvement in total VC invested,
with $97 million invested in 45 seed-startup companies, more than
double the $47 million dollars that were drawn in during the previous
Non-technology sectors dominate and life sciences surge
With a 60% jump over 2011, non-technology sectors gained ground with
$151 million in investments (37% of the total). Information technology
sectors ranked second, at $124 million, while life sciences saw a
sudden surge in the second half, bringing in $114 million for the year.
However, activity in clean technologies was disappointing, with $19
million (5% of total investment).
About Réseau Capital
Réseau Capital, founded in 1989, is the only private-equity association
that brings together all stakeholders involved in the Québec investment
chain. The mission of Réseau Capital is to contribute to the
development and efficient operation of the private-equity industry,
which plays a major role in the development and financing of businesses
in Québec. Réseau Capital has more than 425 members representing
private-equity, tax-advantaged and public investment companies, as well
as banks and insurance companies, accounting and law firms, angel
investors, and many professionals working in the field.
SOURCE: Réseau Capital
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