Canada’s enterprise market isn’t immune from the worldwide market downturn, however not like the U.S. — the place every part appears more and more bleak — there are fairly a couple of shiny spots in Canada’s ecosystem this yr.
Information from the Canadian Enterprise Capital and Personal Fairness Affiliation (CVCA) discovered that C$7.2 billion ($5.28 billion) was invested throughout 520 offers within the nation by the third quarter of this yr. This compares to C$15 billion deployed by 786 offers in 2021 (extra on Canada’s final yr right here). By Q3, the Canadian market had already surpassed its 2020 numbers. It’s additionally value noting that, not like within the U.S., the fourth quarter isn’t the slowest funding interval every year in Canada.
Numerous latest Canadian enterprise funding has been concentrated within the early levels. Up to now this yr, 88% of the identified enterprise offers in Canada had been seed or early stage, in comparison with 67% within the U.S., in accordance with PitchBook.
CVCA’s supervisor of analysis and product, David Kornacki, mentioned that regardless of the funding totals being decrease than final yr, there have been a whole lot of indicators this yr that the Canadian enterprise market is rising nearer to maturity. For one, he thinks the proliferation of seed offers will create a superb pipeline of later-stage alternatives within the area in a couple of years, one thing Canada has struggled with.
