MONTREAL, May 17 /CNW Telbec/ - Réseau Capital today published
statistics on venture capital activity in Québec for the first quarter
(Q1) of 2011, as compiled by Thomson Reuters.
The number of Québec companies that received venture capital (VC)
increased in the first three months of 2011. Fifty companies received
financing, up 16% from the 43 companies financed the year before. At
the same time, dollar flows to Québec VC-backed firms were down, with
$82 million invested in total between January and March, or 19% below
the $102 million invested in Q1 2010. This decrease is due to smaller
deal sizes, as amounts invested per Québec company averaged $1.6
million during the quarter.
The majority of VC-backed firms in Québec in Q1 2011 were involved in
new deals. Twenty-six companies seeking financing for the first time
obtained $43 million, or more than half of all disbursements in this
According to Geneviève Morin, Co-President of Réseau Capital, "The high proportion of new investments is a positive sign. It indicates
a certain level of confidence in the market and a renewal of the pool
of innovative companies supported by investment capital. It's an
injection of new blood into the economy."
BREAKDOWN BY INVESTOR TYPE
Local investors played a key role in the first quarter, with Québec
labour-sponsored and other retail funds deploying $28 million to 30
companies. They provided more than one-third of the dollar flows in
Québec in Q1 2011 and contributed to the majority of VC-backed firms.
In addition, private-independent VC funds put $20 million to work in 14
companies, for one-quarter of all disbursements, which improves on
their usual Québec market share in recent years.
As compared to the first quarter of 2010, Canadian VC fund-raising
activity lagged this time, with new commitments totalling $217 million,
or 44% below the $386 million committed previously. VC fund managers
headquartered in Québec again netted by far the largest share of the
total raised in this period, namely 60%.
According to Geneviève Morin, Co-President of Réseau Capital, "Even
though Québec was less affected, the general downward trend for fund
raising in Canada is a concern. A variety of well-capitalized funds is
an essential component of a modern, vibrant economy."
ACTIVITY BY SECTOR
VC activity in Québec IT sectors again drove trends in Q1 2011, with 10
companies obtaining $40 million from January to March, or slightly less
than half (49%) of total dollars invested. Activity was up
substantially from Q1 2010, when IT companies received $17 million.
VC activity in Québec's non-technology sectors showed particular growth
between January and March. Deals involving 32 companies contributed to
$24 million invested in total, or 29% more than the $18 million
invested the year before. As a result, traditional activity accounted
for 29% of all disbursements in Q1 2011.
ACTIVITY BY STAGE
Late-stage deals, especially expansions, involved a total of $54 million
going to 32 firms, or a two-thirds market share. Investments in
early-stage deals were up, representing 32% of VC invested in Q1 2011.
Fifteen Québec companies in seed, startup or other early stages of
development attracted $26 million during the quarter, up 58% from the
previous $16 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: |
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