Venture capital dealings in Canada within the first quarter of 2024 rendered a “mixed landscape,” a new report finds.
Investments totalled $1.3 billion across 128 deals, according to the latest “VC & PE Canadian Market Overviews” from the Canadian Venture Capital Association.
Investment levels matched the year-ago quarter, but the report noted a 28% decline in the number of deals.
This means that the average deal size went up—a 47% surge, in fact—which CVCA says reflects a “trend of prioritizing quality over quantity.”
“This quarter marks a continuation of the trend we’ve seen since 2021, where investors are increasingly selecting ventures with proven fundamentals and resilience,” believes Kim Furlong, Chief Executive Officer of CVCA.
The quarter was marked by strength in life sciences ($425M raised across 30 deals) and information and communication technologies ($464M across 69 deals) but was also challenged by a broader decline in deal volume and varied performance in other sectors.
“The standout success in the life sciences sector this quarter highlights a shift toward sectors known for their high growth and innovative capabilities,” Furlong posited.
While early-stage investment held strong, totalling nearly $600M across 38 deals, late-stage investments continued a downward trajectory, seeing the lowest number of deals recorded since 2017, CVCA found.
Alberta saw 19 deals valued at a total of $90M in Q1, placing it fourth in Canada among the provinces.
Calgary, with $88M across 16 deals, ranked third in Canada for dollars invested.
Local fintech Helcim raised a $27 million Series B funding round in February, which held as the biggest deal of the quarter in Alberta.
Edmonton, with $2M across three deals, squeaked into the top 10 most active cities in the country for venture capital.
Alberta experienced record investment in 2022; in 2023, Alberta had another strong year with $707M invested across 86 deals, according to CVCA data.
Investors Lumira Ventures and Yaletown Partners were among the most active during the quarter, according to CVCA’s report. Toronto’s Lumira ranked first in Canada for dollars invested at $288M, while Vancouver’s Yaletown was involved in the most deals at seven.
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