vc & pe canadian market overview // q1 2018 · venture capital & private equity canadian...

VC & PE CANADIAN MARKET OVERVIEW

// Q1 2018

VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2018 | 2

CONTENTS

PARTICIPATING DATA CONTRIBUTORS ............................................................................... 3

FOREWORD ...................................................................................................................................... 4

VENTURE CAPITAL CANADIAN MARKET OVERVIEW .................................................... 5 VENTURE CAPITAL HIGHLIGHTS ................................................................................................................................ 6

VENTURE CAPITAL HEAT MAP ..................................................................................................................................... 7 QUARTER-OVER-QUARTER VC INVESTMENT ACTIVITY ......................................................................... 8 VC ACTIVITY BY DEAL SIZE ............................................................................................................................................. 9 TOP DISCLOSED CANADIAN VC DEALS ............................................................................................................... 10 TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES .................................................................... 11 VC SECTOR BREAKDOWN ............................................................................................................................................. 12 VC STAGE BREAKDOWN ................................................................................................................................................. 13 VC EXITS ....................................................................................................................................................................................... 14 TOP VC EXITS ............................................................................................................................................................................ 15MOST ACTIVE VC FIRMS // FUNDS ........................................................................................................................ 16

PRIVATE EQUITY CANADIAN MARKET OVERVIEW ...................................................... 17 PRIVATE EQUITY HIGHLIGHTS .................................................................................................................................... 18

PRIVATE EQUITY HEAT MAP // BUYOUT & ADD-ON DEALS ONLY ............................................... 19

PRIVATE EQUITY HEAT MAP // ALL PE DEALS ............................................................................................. 20 QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY ....................................................................... 21 TOP DISCLOSED CANADIAN PE DEALS............................................................................................................... 22 PE ACTIVITY BY DEAL SIZE ............................................................................................................................................ 23 TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES ................................................................... 24 PE SECTOR BREAKDOWN .............................................................................................................................................. 25 PE EXITS ....................................................................................................................................................................................... 26 TOP 10 DISCLOSED CANADIAN PE EXITS .......................................................................................................... 27MOST ACTIVE PE INVESTORS .................................................................................................................................... 28

CVCA METHODOLOGY ............................................................................................................. 29 VENTURE CAPITAL .............................................................................................................................................................. 29 PRIVATE EQUITY ............................................................................................................................................................. 30, 31

AUTHORS, ABOUT CVCA AND CONTACT INFO ............................................................. 32


PARTICIPATING DATA CONTRIBUTORS

Alberta Enterprise Corporation

Alberta Teachers' Retirement Fund (ATRF)

BDC Capital Inc

Caisse de dépôt et placement du Québec (CDPQ)

Capital Régional et Coopératif Desjardins

Dancap Private Equity Inc

Fondaction CSN

Fonds de solidarité FTQ

Fonds de solidarité FTQ (Regional)

Investissement Quebec

Northleaf Capital Partners

Ontario Teachers' Pension Plan (OTPP)

Teralys Capital

PARTICIPATING LIMITED PARTNERS

If you would like to have your firm included in future reports, please contact either [email protected] or [email protected]

PARTICIPATING PRIVATE EQUITY & LSVCC FIRMS

32 Degrees Capital

AIP Private Capital

Altas Partners LP

Arc Financial

Ardenton Capital Corporation

Birch Hill Equity Partners

Brookfield Asset Management

CIEL Capital

Clairvest Group Inc.

End of Petroleum

Fengate Real Asset Investments

First West Capital

Fulcrum Capital Partners

GrowthWorks Capital

Highland West Capital

Innovation Platform Capital

InstarAGF Asset Management

Ironbridge Equity Partners

Lex Capital Management

m2s Capital

Mink Capital

Mosaic Capital Corporation

Novacap Management Inc.

OMERS Private Equity Inc.

Parallel 49 Equity

Persistence Capital Partners

PFM Capital Inc

Pillarfour Capital

PRIVEQ Capital Funds

Regimen Equity Partners

Roynat Capital Inc.

Seafort Capital

Searchlight Capital Partners

TIMIA Capital Corp

Tricor Pacific Founders Capital

TriWest Capital Partners

Vistara Capital Partners

Westcap Mgt. Ltd

Western Investment Company of Canada Ltd.

XPND Capital

Accelerate Fund

Anges Quebec

Anges Quebec Capital

Amorchem Venture Fund

Arctern Ventures

AVAC Ltd.

Avrio Ventures Management Corp

Azure Capital Partners

Brightspark Ventures

Build Ventures

CIBC Innovation Banking

Cycle Capital Management

District Ventures LP

Emerald Technology Ventures

Emerillon Capital

Epic Capital

Espresso Capital Ltd.

Eventi Capital Partners

Evok Innovations

Fight Against Cancer Innovation Trust

Freycinet Ventures

Golden Venture Partners

Good News Ventures

Green Acre Capital

GreenSoil Investments

HIGHLINE

iGan Partners

Information Venture Partners

Innovacorp

iNovia Capital

Investeco Capital Corp

Lumira Capital

MaRS Catalyst Fund

MaRS IAF

McRock Capital

New Brunswick Innovation Foundation

Northumberland CFDC

OMERS Ventures

OpenText Enterprise Apps Fund

Pangaea Ventures

Pelorus Venture Capital Ltd.

Plaza Ventures

Quark Venture

Real Ventures

Relay Ventures

Renewal Funds

Roadmap Capital

Ryerson Futures

ScaleUP Ventures

StandUp Ventures

Tandem Expansion

TandemLaunch

TELUS Ventures

Top Renergy

Trellis Capital

TVM Life Science Management Inc.

V3-Ventures

Vancouver Founders Fund

Vanedge Capital Partners

VentureLink Funds

Versant Ventures

Version One Ventures

White Star Capital

Whitecap Venture Partners

Yaletown

PARTICIPATING VENTURE CAPITAL FIRMS

CVCA thanks the following firms who participated in itsQ1 2018 survey.


FOREWORD

Robust Q1 for VC Follows Two Back-To-Back $1B Quarters in 2017; Single PE Mega-Deal Dominates Quarter with all Other Segments Slowing

VENTURE CAPITAL2017 was even better than previously reported due to a few material last-minute deals that were only reported in early 2018. These deals included the $280M Enertech and $51M Wattpad mega-deals. Following two consecutive billion-dollar quarters in Q3 and Q4 2017 venture capital investment in Canada experienced another strong quarter with $690M was invested over 139 deals — a 6% increase compared to the $649M invested in Q1 2017. The last three quarters are evidence of a thriving VC investment climate and the CVCA expects the momentum to continue through 2018.

There were three $50M+ mega-deals in Q1 2018 which accounted for a 34% share of the total investment this quarter. Toronto-based ecobee Incoporated closed a $100M series C from an investor syndicate that included participation from Relay Ventures; Toronto-based WealthSimple Financial Incorporated raised $67M in a new round of financing from Montreal-based Power Financial Corporation; and, Vancouver-based Hootsuite Media closed a $65M financing from CIBC Innovation Banking.

“The Canadian venture capital ecosystem continues to capitalize on Canada’s strategic advantage in a number of areas, resulting in very competitive returns in many sectors,” said Mike Woollatt, CEO, CVCA. “In order for this trend to continue, we will be working hard with government and other stakeholders to ensure Canadian regulation and taxes are competitive to help foster an ongoing competitive edge.”

The exit environment for venture capital in Canada continued to rebound from last year with 11 undisclosed exits in the first quarter of the year.

Information and communication technology (ICT) companies captured the majority of Q1 2018 investment with 61% of total dollars invested ($423M over 87 deals) with cleantech companies receiving a 19% share ($132M over 16 deals).

PRIVATE EQUITYCanadian private equity investment activity experienced a slower quarter in Q1 2018 with $6.5B invested over 137 deals. $5B of that total was from the buyout of Husky Injection Molding Systems Limited with participation from CVCA member OMERS Private Equity Incorporated. This deal aside, there is a significant cooling in activity in the first quarter of 2018, with no deals between $500M-$1B and only 4 deals between $100M-$500M.

61% of all deals in the first quarter of the year were in the small end of the market segment (deals less than $25M) which was equal to last year’s share. Only a 7% share of deals were closed in the small-to-mid market ($25M-$100M), compared to the 11% share in 2017.

21% of private equity deals in Q1 2018 were closed in the industrial and manufacturing sector, with 15% in the information and communications technology (ICT) sector.

“With valuations continuing to climb, the larger buyout side of Canada’s private equity activity is experiencing a slowdown,” said Mike Woollatt, CEO, CVCA. “While there is still a lot of activity on the growth equity side, many buyout firms appear focused on selling versus buying in the Canadian market.”

The pace of private equity exits also slowed, with only 24 exits in the first quarter of the year (totalling $8.7B) compared to 2017 with 152 exits (totalling $10.8B).

$690M in venture capital invested over 139 deals in Q1 and 6% higher than Q1 2017; $5B buyout of Husky Injection Molding Systems Ltd. accounted for three-quarters of total PE investment in Q1 2018

https://www.ecobee.com/

http://relayventures.com/

https://www.wealthsimple.com/en-ca/


https://www.powerfinancial.com/en/

https://hootsuite.com/

https://www.cibc.com/en/commercial-corporate/business-solutions/financing/innovation-banking.html

http://www.husky.co/EN-US/


https://omersprivatemarkets.com/


VENTURE CAPITALCANADIAN MARKET

OVERVIEW // Q1 2018


VENTURE CAPITAL HIGHLIGHTS // Q1 2018

$690M was invested in 139 deals in the first quarter, 6% more than the $649M invested in the same quarter last year. Coming on the heels of two back-to-back $1B+ quarters, this is a healthy signal that 2018 will continue to build on last year’s momentum.

The average deal size was $5M, a 5% increase compared to Q1 2017. Compared to the average deal size in the 5-year period between 2013-2017 ($5.3M), this represents a 6% drop.

The top 10 deals amounted to $370M or a 54% share of total dollars invested. This is a significant jump from last year, where the top 10 deals accounted for only 30% share of total investment.

There were three $50M+ mega-deals this quarter which captured a 34% share of total investment:

Toronto-based ecobee Inc. closed a $100M series C round from an investor syndicate that included Relay Ventures.

Toronto-based WealthSimple Financial Inc. raised a $67M new round of financing from Montreal-based Power Financial Corporation.

Vancouver-based Hootsuite Media closed a $65M financing from CIBC Innovation Banking.

Deals between $1M-$5M captured 16% of total dollars invested, representing a 7% increase from its share last year.

Ontario-based companies received 55% of investment ($379M), up from their 38% share last year; BC-based companies received 19% ($131M) followed closely by Quebec-based companies with an 18% ($125M) share.

Toronto-based companies received almost half ($337M over 45 deals) of total dollars disbursed, with Vancouver-based companies receiving 18% ($127M over 18 deals) and Montreal-based companies a 12% share ($83M over 18 deals).

ICT companies grabbed the lion’s share (61%) of total dollars invested in Q1 2018 ($423M over 87 deals) with cleantech companies receiving a 19% share ($132M over 16 deals).

The market for exits continued the rebound from last year with 11 undisclosed exits.

Key Findings:

https://www.ecobee.com/

http://relayventures.com/


https://www.powerfinancial.com/en/

https://hootsuite.com/

https://www.cibc.com/en/commercial-corporate/business-solutions/financing/innovation-banking.html


3520

5 4

59$125m

$379MOntario

$131MBC

$14MAlberta

Québec

Nova Scotia$38M

New Brunswick

Newfoundland& Labrador

$2M

$1M

$1MSaskatchewan

77Prince Edward

Island

$1M1

1

$690mtotal139 dealstotal #

VENTURE CAPITAL HEAT MAP // Q1 2018


0

20

40

60

80

100

120

140

160

180

200

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1000

220

240

$1,100

$1,200

Q2 Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

$35

8

$41

4

$6

91

$6

13

$41

9

$6

65

$6

21

$58

5

$9

60

$71

3

110

93

113 122

134

140 142

130

127

147

Q3

$6

82

Q4

$8

41

Q1

$6

49

$8

98

Q3

$1,

188

Q4

$1,

073

Q1

$6

90

125134

137

150155 158

139

TOTAL:438 DEALS

$2.1B

TOTAL:546 DEALS

$2.3B

TOTAL:533 DEALS

$3.2B

TOTAL:600 DEALS

$3.8B

TOTAL:139 DEALS

$690M

$ Millions Invested

# Deals

2014 20162015 2017 2018

QUARTER-OVER-QUARTERVC INVESTMENT ACTIVITY


Total Deals $ Millions

< $100K

$100 - $500K

$500K - $1M

$1M - $5M

$5M - $20M

$20M - $50M

$50M +

6

28

17

45

21

4

3

$0.4

$7

$11

$107

$245

$88

$232

VC ACTIVITY BY DEAL SIZE // Q1 2018

$5m-$20mdeals between

capture one-third share


TOP DISCLOSED CANADIAN VC DEALS // Q1 2018

COMPANY NAME PROVINCE DISCLOSED VC FIRM(S) SECTOR STAGE $ MIL

ECOBEE, INC. ONTARIO AMAZON.COM NV INVESTMENT HOLDING LLC, ENERGY IMPACT PARTNERS, RELAY VENTURES, THOMVEST VENTURES, INC. CLEANTECH LATER STAGE VC $100

WEALTHSIMPLE FINANCIAL INC. ONTARIO POWER FINANCIAL CORPORATION ICT LATER STAGE VC $65

DROP LOYALTY INC. ONTARIOFF ASSET MANAGEMENT LLC, NEW ENTERPRISE ASSOCIATES (NEA), PLAZA VENTURES, PORTAG3 VENTURES, SIERRA VENTURES, SILICON VALLEY BANK, WHITE STAR CAPITAL INC.

ICT EARLY STAGE VC $26

D-WAVE SYSTEMS INC. BC PUBLIC SECTOR PENSION INVESTMENT BOARD (PSP) ICT LATER STAGE VC $20

PLATTERZ ONTARIO ALEPH, GLOBALIVE CAPITAL ICT LATER STAGE VC $18

MNUBO INC. QUÉBEC FONDS DE SOLIDARITÉ FTQ, INVESTISSEMENT QUÉBEC, MCROCK CAPITAL CORPORATION, MUNICH RE / HSB VENTURES, WHITE STAR CAPITAL INC. ICT EARLY STAGE VC $17

* THERE WAS 1 UNDISCLOSED DEAL NOT INCLUDED IN THIS LIST


TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES // Q1 2018 #1 toronto

$337M 45 DEALS $337

$83

$127

$37

$20

$27

$9

$4

$1

$1


1. Toronto

2. Montréal

3. Vancouver

4. Halifax

5. Québec

6. Kitchener, Waterloo, Cambridge

7. Ottawa

8. Estrie

9. St. John’s (NF)

10. Saguenay-Lac-St-Jean/Côte-Nord

45

18

18

5

5

5

4

4

4

3

1

8 710

625

7

39

4


0

40

80

120

160

200

240

280

320

400

360

440

520

480

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

2016 2017 2017 2017 201720152014 201620152014 201620152014 20152014

$1,

948

$20

8

$18

5

2016 Q12018

Q12018

Q12018

Q12018

276

329

331

379

113

104

78

$48

8 $72

1

$73

3

$70

1

$1,

342

$1,

335

106

19 47 44 35 1614

2027 25 4

$17

7

$13

8

47

$27

$42

$2,

463

$13

2

$27

$40

9

$9

8

$42

3

87

$6

8

VC SECTOR BREAKDOWN // 2014-Q1 2018

ICT CleanTechLife Sciences AgriBusiness

$ Millions Invested

# Deals


VC STAGE BREAKDOWN // 2014-Q1 2018

0

30

60

90

120

150

180

210

240

300

270

330

360

$0

$175

$350

$525

$700

$875

$1,050

$1,225

$1,400

$1,575

$1,750

$1,925

$2,100

201620152014 201620152014 201620152014

$13

6

$15

9

$21

4

$8

60

$1,

06

8

$1,

210

$8

93

$1,

570

$1,

99

4

$1,

403

201720172017

139

180 178179

220

260

235

56

117135

93

153

43

$1,

573

204

$22

7

Q12018

$54

Q12018

$27

8

Q12018

$35

7

38

Seed Early Stage Later Stage

$ Millions Invested

# Deals


VC EXITS* // 2014-Q1 2018

M&A IPO**

* INCLUDES TRANSACTIONS WITH UNDISCLOSED VALUES

** MARKET CAP AT TIME OF IPO

$ Millions Invested

# Deals

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

0

5

10

15

20

25

30

35

40

50

45

201620152014 201620152014

$50

3

$1,

392

$58

4

$1,

00

820172017

$75

Q12018

Q12018

29

41

30

6

40 0

32

11

3

$9

19

$2,

150

$2,

338


TOP VC EXITS* // Q1 2018

There were

undisclosedexits in q1 201811


MOST ACTIVE VC FIRMS // FUNDS // Q1 2018

MOST ACTIVE PRIVATE INDEPENDENT FIRMS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

REAL VENTURES 13 $60

CYCLE CAPITAL MANAGEMENT/ECOFUEL 6 $38

PLAZA VENTURES 5 $36

SCALEUP VENTURES 5 $8

KILLICK CAPITAL INC. 4 $1

PELORUS VENTURE CAPITAL LTD. 4 $1

INOVIA CAPITAL INC. 3 $17

IGAN PARTNERS INC. 3 $13

GOLDEN VENTURE PARTNERS 3 $7

MOST ACTIVE VC DEBT FIRMS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

ESPRESSO CAPITAL LTD. 12 $12

CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS (CRCD) 3 $2

TIMIA CAPITAL CORP. 2 $1

MOST ACTIVE PENSION, RETAIL, CORPORATE & OTHER PUBLIC FUNDS # ROUNDS

SIZE OF TOTAL ROUNDS*

(CDN$ MIL)

CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS (CRCD) 12 $23

FONDS DE SOLIDARITÉ FTQ 6 $37

MOST ACTIVE GOVERNMENT FUNDS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

NEW BRUNSWICK INNOVATION FOUNDATION (NBIF) 7 $3

INNOVACORP 6 $24

BDC CAPITAL 6 $16

MARS IAF 5 $5

INVESTISSEMENT QUÉBEC 3 $39

ATLANTIC CANADA OPPORTUNITIES AGENCY (ACOA) 3 $5

ANGES QUÉBEC CAPITAL 3 $9* TOTAL DEAL VALUES - INCLUDES ALL PARTICIPATING INVESTORS

# Rounds

Real Ventures

Capital Régional et Coopératif Desjardins (CRCD)

New Brunswick Innovation Foundation (NBIF)

Cycle Capital Management/Ecofuel


Innovacorp

BDC Capital

Plaza Ventures

ScaleUp Ventures

MaRS IAF

13

12

7

6

6

6

6

5

5

5

Size of Total Rounds* (Cdn$ mil)

$60

$23

$3

$38

$37

$24

$16

$36

$8

$5


PRIVATE EQUITYCANADIAN MARKET

OVERVIEW // Q1 2018


$6.8B was invested over 137 PE deals in Q1 2018, although three quarters of that amount was a single mega-deal—the $5B secondary buyout of Husky Injection Molding Systems Ltd.

Excluding that single-mega deal, the first quarter was relatively bleak with no deals between $500M-$1B and only 4 deals between $100M-$500M.

Propelled by the $5B Husky deal, the amount invested in secondary buyouts has already exceeded the total in each of the last five years.

Deal activity in the small end of the market segment (deals less than $25M) garnered 61% of all deals, equal to last year’s share. Deals between $25M-$100M only captured a 7% share of deals, down from the 11% last year.

20% (27 deals totalling $594M) of all PE deals went to Montreal-based companies, with Toronto-based companies receiving a 12% share (17 deals totalling $5.3B).

A little over a fifth (21%) of PE deals this year have been closed in the industrial and manufacturing sector with ICT companies receiving the second largest share (15%).

The pace of PE exits slowed with only 24 exits (totalling $8.7B) compared to last year with 152 exits (totalling $10.8B):

Pinnacle Renewable Energy Inc. (TSX: PL) was the lone IPO, going public on TSX with a market cap of $370M.

PRIVATE EQUITY HIGHLIGHTS // Q1 2018

Key Findings:


https://pinnaclepellet.com/


546

1 2

$24M$0M

$50M

$403m

$0M

$5.2bOntario

BCAlberta

Saskatchewan

Québec

Nova Scotia

16

$0MManitoba

NewBrunswick

$0M

1 1

$5.7btotal

36 dealstotal #

PRIVATE EQUITY HEAT MAP // BUYOUT & ADD-ON DEALS ONLY // Q1 2018


4 2

11

801312

$54m$17m

$173m

$1.1b

$0M

$5.4bOntario

BCAlberta

Saskatchewan

Québec

Nova Scotia

24

$0MManitoba $0M

NewBrunswick

$6.8btotal 137 dealstotal #

PRIVATE EQUITY HEAT MAP // ALL PE DEALS // Q1 2018


Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

0

20

40

60

80

100

120

140

160

180

200

$6

,277

$5,

250

$7,

80

4

$22

,851

$7,

053

$1,

86

9

$11

,36

7

$2,

60

0

$3,

221

$3,

370

64

81

88

101

91

104

117

113

124

145

134

139

$3,

06

8

Q3

$4,

179

Q4

$5,

315

Q1 Q2 Q3 Q4

113

179

165 153

137

$8

,819

$7,

554

$4,

69

2

Q1

$6

,76

8

QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY

TOTAL:334 DEALS

$42.2B

TOTAL:425 DEALS

$22.9B

TOTAL:542 DEALS

$13.8B

TOTAL:610 DEALS

$26.4B

TOTAL:137 DEALS

$6.8B

$ Millions Invested

# Deals

2014 20162015 2017 2018


TOP DISCLOSED CANADIAN PE DEALS // Q1 2018

COMPANY NAME PROVINCE FIRMS INVOLVED IN TRANSACTION SECTOR $ MIL.

HUSKY INJECTION MOLDING SYSTEMS LTD ONTARIO BERKSHIRE PARTNERS LLC, OMERS PRIVATE EQUITY INC., PLATINUM EQUITY LLC INDUSTRIAL &

MANUFACTURING $4,964

NAPEC INC. QUÉBEC FONDS DE SOLIDARITÉ FTQ, OAKTREE CAPITAL GROUP LLC INDUSTRIAL & MANUFACTURING $320

POINTCLICKCARE CORP. ONTARIO DRAGONEER INVESTMENT GROUP LIFE SCIENCES $187

eSTRUXTURE QUÉBEC FENGATE CAPITAL MANAGEMENT LTD. ICT $180

RÉSIDENCES POUR AÎNÉS IMMO 1ERE INC. QUÉBEC CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS (CRCD) REAL ESTATE $122

CBI HEALTH GROUP ONTARIO OMERS PRIVATE EQUITY INC., PENFUND INC. LIFE SCIENCES $70

* THERE WERE 3 UNDISCLOSED DEALS OVER $50M THAT WERE NOT INCLUDED IN THIS LIST


0

40

80

120

160

200

240

280

320

400

360

$0

$1,600

$3,200

$4,800

$6,400

$8,000

$9,600

$11,200

$12,800

$14,400

$16,000

201620152014 201620152014 201620152014 20152014

$8

49

$9

02

$1,

290

$6

,09

3

$6

,321

$3,

212

$5,

86

1

$3,

106 $

4,79

7 $6

,60

1

2016

$7,

630

201620152014 201620152014

$10

,910

$4,

782

$4,

034

$3,

250

$3,

300

$4,

80

0

201720172017201720172017

$14

,927

116

183

362

55 56 49 27 3114 10 7 1144

7 3 3 22 1 0 1 1

$2,

80

4

$2,

788

$2,

197

$3,

246

$1,

593

Q12018

370

8466

10

28

< $25M $25M-$100M $100M-$500M $1B-$2.5B$500M-$1B $2.5B+

Q12018

$50

4

Q12018

$8

09

Q12018

Q12018

Q12018

$4,

96

4

$49

1

PE ACTIVITY BY DEAL SIZE // Q1 2018

TOTAL:1062 DEALS

$5.1B

TOTAL:236 DEALS

$11.5B

TOTAL:104 DEALS

$22.3B

TOTAL:15 DEALS

$23B

TOTAL:32 DEALS

$22.1B

TOTAL:5 DEALS

$28B

$ Millions Invested

# Deals



1. Montreal

2. Toronto

3. Calgary

4. Montérégie

5. Saguenay-Lac-St-Jean/Côte-Nord

6. Bas-Saint-Laurent

7. Vancouver

8. Chaudière-Appalaches

9. Centre-du-Québec

10. Nord-du-Québec / Abitibi-Témis

27

17

10

9

7

7

6

5

4

4

$594

$5,269

$46

$21

$22

$41

$113

$21

$383

$4

TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES // Q1 2018 #1 montréal

$594M 27 DEALS

2

3

8

6

10

41

75

9


29

21

17

16

13

10

7

6

6

5

3

3

1

# Deals $ Millions

Industrial & Manufacturing

ICT

Life Sciences

Consumer & Retail

Business Products & Services

Agri-Forestry

Oil & Gas, Power

Automotive & Transportation

CleanTech

Mining & Resources

Financial

Real Estate

Others

$5,395

$309

$402

$66

$101

$39

$112

$103

$30

$4

$60

$146

$0

PE SECTOR BREAKDOWN // Q1 2018

industrial & manufacturing

most active sector

29 deals


PE EXITS* // 2014-Q1 2018 $ Millions Invested

# Deals

* INCLUDES TRANSACTIONS WITH UNDISCLOSED VALUES

** MARKET CAP AT TIME OF IPO

201620152014 201620152014 201620152014

$8

,055

$2,

553

$1,

711

$4,

238

201720172017

$37

0

Q12018

$11

,679

$12

,812

$6

,943

$2,

790

0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

5 61 1

6

50 50

56

134

1210

6

11

IPO/RTO** M&A Secondary Buyout

Q12018

Q12018

$5,

212

19

$3,

162

4

$2,

015

$2,

241

$3,

793

$1,

714


TOP 10 DISCLOSED CANADIAN PE EXITS // Q1 2018

SELLER COMPANY NAME BUYER $ MIL.

BERKSHIRE PARTNERS LLC, OMERS PRIVATE EQUITY INC. HUSKY INJECTION MOLDING SYSTEMS LTD PLATINUM EQUITY LLC $4,964

PERMIRA, FONDS DE SOLIDARITÉ, CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) ATRIUM INNOVATIONS INC. NESTLÉ S.A. $2,973

ONCAP PINNACLE RENEWABLE ENERGY INC. NA - IPO ON TSX $370

NA POINTCLICKCARE CORP. DRAGONEER INVESTMENT GROUP $187

Husky Injection Molding Systems Ltd

bought by Platinum Equity, LLC $4,964m#1

* THERE WERE 3 UNDISCLOSED $50M+ EXITS


37

24

7

7

4

4

# Deals $ Millions*


Capital Régional et Coopératif Desjardins (CRCD)

Caisse de dépôt et placement du Québec (CDPQ)

Fondaction CSN

Investissement Québec

PFM Capital Inc.

$717

$208

$140

$44

$40

$27

MOST ACTIVE PE INVESTORS // Q1 2018

* TOTAL DEAL VALUES – INCLUDES ALL PARTICIPATING INVESTORS

most active PE FIRM

37 DEALSFonds de solidarité FTQ


CVCA METHODOLOGY // VENTURE CAPITAL

VC DEVELOPMENT STAGES

SEED STAGE COMPANY HAS A CONCEPT OR PRODUCT UNDER DEVELOPMENT, BUT IS PROBABLY NOT FULLY OPERATIONAL.

EARLY STAGE COMPANY HAS A PRODUCT OR SERVICE IN TESTING OR PILOT PRODUCTION. IN SOME CASES, THE PRODUCT MAY BE COMMERCIALLY AVAILABLE.

LATER STAGE PRODUCT OR SERVICE IN PRODUCTION AND COMMERCIALLY AVAILABLE. COMPANY IS GENERATING ON-GOING REVENUE, BUT NOT NECESSARILY, PROFITABLE.

VC SECTORS

ICT COMPUTER HARDWARE AND SOFTWARE AND SERVICES, INTERNET SOFTWARE OR SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE AND TELECOM TECHNOLOGIES AND SERVICES

LIFE SCIENCES BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES

CLEANTECH ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES

AGRIBUSINESS TRADITIONAL AND ADVANCED AGRICULTURAL TECHNOLOGIES AND SERVICES

Venture Capital Data:

Verified completed equity or quasi-equity venture capital deals only (non-equity or project-based government funding, pharmaceutical development deals, senior debt, venture capital-backed acquisitions, and angel financing are not included)


CVCA METHODOLOGY // PRIVATE EQUITY

Private Equity Data:

Dataset includes only completed private equity deals (announced but yet to be completed deals are not included)

PE DEAL TYPE

BUYOUT INVESTMENT FOR THE CONTROL OF A PORTFOLIO COMPANY, INCLUDING PLATFORM CREATION, SECONDARY BUYOUT

GROWTH SIGNIFICANT MINORITY INVESTMENT INTO A PORTFOLIO COMPANY, THROUGH NEW CAPITAL INFUSION AND RECAPITALIZATION

ADD-ON CORPORATE ACQUISITIONS BY MAJORITY CONTROLLED PE BACKED PORTFOLIO COMPANIES

DEBT DEBT INVESTMENT INTO PORTFOLIO COMPANIES

INFRASTRUCTURE INVESTMENTS INTO DEVELOPMENT AND MANAGEMENT OF INFRASTRUCTURE ASSETS BUT PE DOES NOT OWN THE UNDERLYING ASSETS

continued

PE SECTORS

AGRI-FORESTRY AGRICULTURE, FOODS AND FORESTRY

AUTOMOTIVE & TRANSPORTATION TRANSPORTATION, LOGISTICS AND RELATED SERVICES

BUSINESS PRODUCTS & SERVICES BUSINESS PRODUCTS AND SERVICES

CLEANTECH ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES


CVCA METHODOLOGY // PRIVATE EQUITY continued

PE SECTORS

CONSUMER & RETAIL CONSUMER PRODUCTS AND SERVICES, BRICK AND MORTAR RETAIL

FINANCIAL FINANCIAL SERVICES

ICT COMPUTER HARDWARE/SOFTWARE & SERVICES, INTERNET SOFTWARE & SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE & TELECOM AND SERVICES

INDUSTRIAL & MANUFACTURING EQUIPMENT AND MATERIAL MANUFACTURING

LIFE SCIENCES BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES

MINING & RESOURCES NON OIL AND GAS NATURAL RESOURCES

OIL & GAS, POWER OIL & GAS, POWER AND UTILITIES

REAL ESTATE PROPERTY DEVELOPMENT AND MANAGEMENT


CVCA ABOUT & CONTACT

AuthorsDarrell oversees all data related to Canadian private capital investments, exit and fundraising activities for the CVCA. Darrell has held senior positions at several global organizations including the Toronto Stock Exchange, Institutional Limited Partners Association, Thomson Reuters, Glaxosmithkline and the Interac Association. In between these, he also started his own successful management consulting company. He has worked in New York, London and Shanghai, but Toronto remains his favourite working city. He brings to the CVCA a passion for telling compelling stories with data. Darrell is currently on the board of a non-profit social housing in Peel, a member of Volunteer Toronto as well as an active volunteer with Woodgreen Community Services. He holds a BA in Philosophy/History from the University of Western Ontario and an MBA from the Rotman School of Management.

[email protected] | 416-487-0519 ext. 208

Carolyn oversees all of the CVCA’s communications and marketing efforts, which includes managing the Association’s brand, coordinating media outreach programs, and managing the development of all online content and social media engagements. Carolyn also brings with her a background in journalism, and is keen on positioning the CVCA as the industry thought leader for all things private capital through informative and engaging content. Carolyn has a BA in Popular Culture and Communications from Brock University, a diploma in Journalism from Niagara College Canada, and an interdisciplinary Master of Arts degree in Communication Studies from Brock University.


David executes research on venture capital and private equity deals within Canada. David is responsible for monitoring industry activity and maintaining the CVCA’s Infobase by entering data, including investments, exits, deals and fundraising activities on a daily basis. David holds a BA in Philosophy and Psy-chology from the University of Toronto.


DARRELL PINTOResearch Director

DAVID KORNACKIResearch Analyst

CAROLYN GOARDSenior Manager, Communications

About CVCAThe Canadian Venture Capital and Private Equity Association is the voice of Canada’s venture capital and private equity industry. We are focused on improving the private capital ecosystem by broadening indus-try awareness and providing market research, networking, and professional development opportunities.

We also advocate on behalf of the industry to ensure sound public policy that encourages a favourable investment environment. The CVCA works alongside its members, who represent the vast majority of pri-vate capital firms in Canada, to improve the industry and drive innovation and growth.

For more information, visit cvca.ca

@CVCACanada /CVCACanada

CVCA - Canadian Venture Capital and Private Equity Association

372 Bay St., Suite 1201 Toronto, ON M5H 2W9

To obtain estimates for additional custom InfoBase data reports please contact [email protected]

vc & pe canadian market overview // q1 2018 · venture capital & private equity canadian...

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