2020 YEAR IN REVIEW CANADIAN VENTURE CAPITAL MARKET OVERVIEW

2020 YEAR IN REVIEWCANADIANVENTURE CAPITALMARKET OVERVIEW

VC Investment in 2020 closes at $4.4B – Second Highest on Record

Contents

ABOUT CVCAOUR VISIONA thriving Canadian economy driven by private capital

OUR MISSION CVCA’s mission is to help our members fuel the economy of the future by growing the businesses of today. We do this by supporting and connecting a vibrant private capital industry with advocacy, research, and education.

CVCA is also the nation’s ultimate resource for data on Canadian private capital investments.

ABOUT CVCA ............................................................................................................................................................. 1

MESSAGE FROM THE CEO .................................................................................................................................3

2020 HIGHLIGHTS ................................................................................................................................................. 4

SPOTLIGHT ON VENTURE CAPITAL IN ATLANTIC CANADA ...........................................................3

PRIVATE CAPITAL FUELS CANADA’S COVID-19 RECOVERY .......................................................... 5

VENTURE CAPITAL HEAT MAP ........................................................................................................................7

VENTURE CAPITAL INVESTMENT ACTIVITY ...................................................................................12-13

ACTIVITY QUARTER OVER QUARTER ...............................................................................................12

ACTIVITY BY DEAL SIZE ........................................................................................................................... 13

EMPLOYEES SUPPORTED ................................................................................................................................ 14

BY VC INVESTMENT ..................................................................................................................................12

BY CITY ............................................................................................................................................................ 13

TOP 10 DISCLOSED CANADIAN VC DEALS ............................................................................................ 18

TOP 10 CANADIAN CITIES/ADMINISTRATIVE CENTRES ................................................................ 19

VC SECTOR BREAKDOWN ...............................................................................................................................20

VC STAGE BREAKDOWN .................................................................................................................................. 21

VENTURE DEBT HEAT MAP ............................................................................................................................22

VC EXITS ....................................................................................................................................................................24

TOP DISCLOSED VC EXITS ..............................................................................................................................25

MOST ACTIVE VC FIRMS & FUNDS ............................................................................................................26

FOREIGN VCS IN CANADA ...............................................................................................................................28

VC MEMBER LANDSCAPE ...............................................................................................................................30

TOP 25 VENTURE-BACKED COMPANIES BY TOTAL FUNDS RAISED .....................................24

PARTICIPATING DATA CONTRIBUTORS ...................................................................................................26

CVCA METHODOLOGY ......................................................................................................................................28

MESSAGE FROM THE CEO2020 was a remarkable year for Canadian venture capital, particularly in the second half where the market demonstrated real resiliency. The long-term health of the Canadian innovation ecosystem, including venture investment, is critical as we continue to navigate the impacts from the COVID-19 pandemic. It is imperative that we continue to grow the capital available to Canadian entrepreneurs, as venture capital plays a vital role in Canada’s economic recovery and future growth.

KIM FURLONG CEO CANADIAN VENTURE CAPITAL & PRIVATE EQUITY ASSOCIATION

2020 HIGHLIGHTS

2020 saw the second-highest level of VC investment on record.

Second only to 2019, Canadian VC invested $4.4B across 509 deals in 2020.

The momentum of VC-backed exits is on track relative to previous years.

There were 38 exits in 2020 totalling $1B.

The largest exit in 2020 was also the largest exit on record.

Vancouver-based biotech company Abcellera listed on NASDAQ with a market cap of $6.7B.

Late-stage investment (Series C+) reached the highest level on record.

Dollars invested increased by 48% from the previous year and 53% compared to 5-year average (2015-19).

Seed-stage investments saw the highest average deal size on record at $2M.

A 41% increase from 2019 levels and more than doubling the amount from 5 years ago.

A number of mid-cap Canadian biotech and pharmaceutical companies also went public on the NASDAQ.

This includes Montréal-based cancer-drug developer Repare Therapeutics and Hamilton-based Fusion Pharmaceuticals.

A total of 26,277 jobs were supported by VC investment as of Q4 2020.

This includes 15,695 jobs in the ICT sector.

2020 HIGHLIGHTS | 5

SPOTLIGHT ON VENTURE CAPITAL IN ATLANTIC CANADAby ENTREVESTOR

A GROWING COMMUNITYThe Entrevestor Databank, which tracks high-growth companies in Atlantic Canada, comprised 720 companies at the end of 2020. It grew by 3% during the pandemic, down from the customary 15% annual growth of the last seven years.

THREE IN THE FAST 50Three Atlantic Canadian companies made the 2020 Deloitte Tech Fast 50, the most ever: Fredericton- and Washington-based Introhive at #19 (having been #10 in 2019); Kraken Robotics of St. John’s at #36; and Halifax’s Proposify at #45.

COMPANIES MOVINGTO ATLANTIC CANADAAtlantic Canada’s success in suppressing COVID-19 has accelerated the migration of companies to the region. At least a dozen startups made the move recently, such as IndieBio alumni Reazent of India and Kraken Sense of Mississauga.

EXITSThe biggest news of 2020 was Nasdaq’s US$2.75B acquisition of St. John’s-based fintech company Verafin. Other notable exits included Halifax companies Kinduct (bought by mCube) and SalesRight (bought by FastSpring).

FUNDINGThe CVCA says East Coast startups raised $90 million in 34 VC deals in 2020, the weakest showing in three years. The average deal was $2.6 million as companies attracted growth-stage funding despite the pandemic.

SPOTLIGHT ON ATLANTIC CANADA | 76

ABOUT ENTREVESTOR

Atlantic Canada’s startup news was dominated in 2020 by the sale of St. John’s-based Verafin, which produces anti-fraud and anti-money-laundering software, to Nasdaq for US$2.75 billion.

Atlantic Canada has finally found its unicorn, and the result will be a stronger IT community in the region, especially in St. John’s.

The marriage of Nasdaq and Verafin will produce a leader in “Anti FinCrime”, as they call it, bringing Verafin’s best-in-class software into a stock exchange with relationships with the world’s biggest financial institutions. The partners said the “Anti FinCrime” sector is now worth US$12.5 billion and is expected to grow at a 17% annual pace through 2024.

Exits were a big glittery story on the East Coast in 2020, though it could be argued an equally important story was the resilience shown in coping with the pandemic. Overall growth slowed, but the community avoided the flood of bankruptcies that observers feared in early March.

The preliminary figures in the Entrevestor Databank list a total of 720 companies for 2020, up 3% from 697 the previous year. That’s the slowest growth rate we’ve reported in seven years of collecting this data, and compares with a record-high growth rate of 27% in 2019. We have recorded about 80 new companies in 2020, roughly half the number of 2019.

The CVCA data shows a decrease in venture capital funding to $90 million in 34 deals in Atlantic Canada, but the funding was bound to fall after Verafin booked a $515 million funding round in 2019. There were some notable VC deals last year. Cloud security company Sonrai Security closed a US$20 million round led by Menlo Ventures of Silicon Valley. The round also drew the backing of returning investors Polaris Partners and Ten Eleven Ventures.

Halifax’s CarbonCure Technologies in September closed a funding round led by Amazon and Breakthrough Ventures. The amount raised wasn’t released but the size of the investors suggests a raise of eight figures. CarbonCure is also front and centre in Big Tech’s mission to remove carbon dioxide from the atmosphere, and is one of the leading companies receiving offsets from giants like Stripe and Microsoft.

Although we haven’t yet tabulated 2020 employment at Atlantic Canadian startups, Patrick Hankinson at Concrete Ventures estimates job levels by analysing LinkedIn data. He said that the startup community in Atlantic Canada produced a net 654 new jobs in 2020, bringing the total to 10,337 jobs – an increase of almost 7%. Of the companies that he’s tracking, 40% added staff, 29% had no change and 31% shed employees.

Similarly, we haven’t calculated revenue data yet, but several companies have told us their sales soared in the past year. In April, Squiggle Park CEO Julia Rivard said her EdTech company’s monthly revenues rose 400% in March. Other companies have told us of strong revenue growth last year -- 95% by Fredericton’s Beauceron Security and 254% by New Brunswick’s Mesh/Diversity (as of October).

Among the other exits, Halifax-based sportstech company Kinduct was sold to mCube, a Silicon Valley company that produces the world’s smallest sensors, for an undisclosed price. Kinduct had previously closed a Series A round led by Intel Capital. Halifax-based SalesRight, which helps B2B Software-as-a-Service companies simplify their pricing, was acquired by Santa Barbara, Calif.-based FastSpring for an undisclosed price. It was the first exit for early-stage investors Concrete Ventures of Halifax and Island Capital Partners of Charlottetown.

Entrevestor was founded in 2011 by writers Peter and Carol Moreira as a portal to unite and inform the startup community in Atlantic Canada. It posts daily news on Atlantic Canadian startups on its website, www.entrevestor.com, and it provides the benchmark data for the East Coast startup community.

CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW

CANADIAN VENTURE CAPITAL MARKET OVERVIEW | Q4 2020

THANKS TO THE SUPPORT OF CVCA MEMBER INVESTORS:

BCF VENTURES • BDC CAPITAL • CLEARSPRING CAPITAL PARTNERS CONEXUS VENTURE CAPITAL • INFORMATION VENTURE PARTNERS INC. LUMIRA VENTURES • MARS INVESTMENT ACCELERATOR FUND • MCROCK CAPITAL NOVACAP MANAGEMENT INC. • RELENTLESS VENTURE FUND • RIPPLE VENTURES TELUS VENTURES • XPV WATER PARTNERS

PRIVATE CAPITALFUELS CANADA’S COVID-19 RECOVERYCVCA Member Portfolio Companies

PRIVATE CAPITAL FUELS CANADA’S COVID-19 RECOVERY | 9


TESTING & TREATMENTS

SAFETY EQUIPMENT

STAYING SAFE AT HOME

E-HEALTH

WORK FROM HOME

8

212131

6951

$1b$2BOntario

$893MBritish

Columbia $455MAlberta

Québec

Nova Scotia$65M

New Brunswick$10M$37M

Manitoba

Newfoundlandand Labrador

$9M

14 13

57

6

1

Prince EdwardIsland

$6M

$15MSaskatchewan

2020VENTURE CAPITALHEAT MAP

TOP SECTORS PER PROVINCE

The top three provinces with the highest level of VC investment activity are Ontario, Quebec, and BC. Ontario received the highest percentage of dollars invested as well as deal volume, with $1.9B or 44% of total dollars invested in 2020. Toronto accounted for $1.2B and 164 of those deals. Quebec came in second with 23% of all dollars invested, and BC received 20% of total dollars invested. These 3 provinces account for nearly 90% of the total dollars invested in 2020. An honorable mention goes to the province of Alberta, which saw the highest level of VC investment on record in 2020.

ICT (Information, Communications & Technology) and Life Sciences sectors received over 80% of all the investments made in 2020, with ICT deals accounting for more than half of the investment in the year with $2.4B over 284 deals. The Life Sciences sector received 26% of total investments with $1.1B over 89 deals.


BRITISH COLUMBIA

BY NUMBER OF DEALS

ALBERTA SASKATCHEWAN MANITOBA ONTARIO QUÉBEC NEW BRUNSWICK NOVA SCOTIA PRINCE EDWARD ISLAND

NEWFOUNDLAND AND LABRADOR

ICT 40

LIFE SCIENCES12

AGRIBUSINESS1

ICT 28

LIFE SCIENCES8

AGRIBUSINESS3

ICT 6

AGRIBUSINESS1

ICT 123

LIFE SCIENCES35

AGRIBUSINESS9

ICT 5

ICT 61

LIFE SCIENCES30

CLEANTECH13

ICT 12

ICT 1

ICT 5

LIFE SCIENCES4

CLEANTECH3

ICT 3

CLEANTECH1

$4.4 BILLION

509 DEALStotal invested into

10

VENTURE CAPITALINVESTMENT ACTIVITY

VENTURE CAPITALINVESTMENT ACTIVITY

ACTIVITY QUARTER-OVER-QUARTER

2020 saw the second-highest level of annual VC investment based on our existing records, with $4.4B across 509 deals, second only to 2019, an outlier year marked by megadeals. In Q4 of 2020, VC investments in Canada came in at just under $1B across 126 deals (including 4 megadeals), which was 1.5x lower than the same quarter in 2019 ($1.5B invested in Q4 2019). Overall, total dollars invested in 2020 was higher than the five-year average ($3.8B and 517 deals in 2015-2019) with lower number of deals.

$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

0

20

40

60

80

100

120

140

160

180

200

Q2Q1

$940

$703

Q3

$717

Q4

$839

$916

$1,6

95

Q2Q1

$592

$864

Q3

$1,11

4

Q4

$1,0

55

Q1

$629

Q2 Q3

$1,0

70

$710

Q4

$1,2

68

Q1 Q1 Q2

$897

Q2

$1,3

50

Q3

$2,4

14

Q4

$1,5

06

125 127

139

$847

Q3

117

$985

Q4

126

145

124

134

104

120 118111

128

143

108

129

116

151

130

163

TOTAL:

528 DEALS$3.2B

TOTAL:

453 DEALS$3.6B

TOTAL:

508 DEALS$3.7B

TOTAL:

560 DEALS$6.2B

TOTAL:

509 DEALS$4.4B

2016 2017 2018 2019 2020

12 | VENTURE CAPITAL INVESTMENT ACTIVITY QUARTER-OVER-QUARTER

$ Millions Invested # Deals

ACTIVITY BY DEAL SIZE

Over 60% of the deals in 2020 were less than $5M, with most of these deals ranging between $1M-$5M. There were 17 megadeals ($50M+) accounting for 38% of total dollars invested in the year. As a result of the greater number of megadeals ($50M+) in Q4 compared to the previous quarter, the average deal size in Q4 2020 was $7.8M.

VENTURE CAPITAL INVESTMENT ACTIVITY BY DEAL SIZE | 13

Total Deals $ Millions

< $100K

$100K - $500K

$500K - $1M

$1M - $5M

$5M - $20M

$20M - $50M

$50M +

20

49

55

160

130

37

21

$1

$11

$36

$372

$1,238

$1,079

$1,705

37% OF deal flow was above $5m


11,2474,876

4,592 2,54278

369329

877146

19

EMPLOYEES SUPPORTED BY YTD VC INVESTMENT

ICT

Sector # of Employees Supportedin 2020*

Life Sciences

Cleantech

Agribusiness

15,695

3,714

961

310

14 | EMPLOYEES SUPPORTED BY YTD VC INVESTMENT

Seed

DealType

# of Employees Supportedin 2020*

Early Stage

Later Stage

Growth

2,510

8,222

8,632

1,523

25,942 EMPLOYEES SUPPORTED

SOURCE:

*Employment numbers represent only those VC-backed companies that received VC funding in 2020.

EMPLOYEES SUPPORTED BY CITY | 15

EMPLOYEES SUPPORTEDBY CITYA total of 26,277 people were employed by VC-backed companies as of Q4 2020. These employment numbers represent only those positions in VC-backed companies that received VC funding as of Q4 2020 YTD.

Ontario has the greatest number of venture-backed jobs across all the provinces, including 6,847 jobs in Toronto, followed by Quebec has 4,347 including 3,665 in Montréal.

TOP 2 CITIES BY EMPLOYEE COUNT IN VC-BACKED COMPANIES

8,203Toronto

4,004Montréal

City Total Employees Supported by VC ICT Life Sciences CleanTech Agribusiness

Toronto 8,203 4,163 1,496 462 52

Montréal 4,004 1,940 699 196 32

Vancouver 3,781 2,502 471

Calgary 2,123 1,739 99 16

Kitchener 1,441 1,097 123 19

Ottawa 646 409 14

Winnipeg 492 492

Edmonton 408 307 59 26


TOP 10DISCLOSEDCANADIAN VC DEALSCOMPANY NAME PROVINCE DISCLOSED VC FIRM(S) SECTOR STAGE $ MIL

ABCELLERA BRITISH COLUMBIA

PRESIGHT CAPITAL, ORBIMED ADVISORS, DCVC BIO, VIKING GLOBAL INVESTORS, FOUNDERS FUND

LIFE SCIENCES

LATER STAGE $144

CHINOOK THERAPEUTICS

BRITISH COLUMBIA

ECOR1 CAPITAL, LLC, ORBIMED PRIVATE INVESTMENTS VII, LP, ROCK SPRINGS CAPITAL MANAGEMENT, AVIDITY PARTNERS, VERSANT VENTURE MANAGEMENT, LLC, APPLE TREE PARTNERS II - ANNEX, L.P., SAMSARA BIOCAPITAL, SURVEYOR CAPITAL, NORTHLEAF CAPITAL PARTNERS, SPHERA GLOBAL HEALTHCARE FUND, ALLY BRIDGE GROUP, MONASHEE INVESTMENT MANAGEMENT

LIFE SCIENCES PRE-IPO $140

MIOVISION ONTARIO TELUS VENTURES, MCROCK CAPITAL PARTNERS ICT LATER STAGE $120

WEALTHSIMPLE FINANCIAL CORP. ONTARIO TCV, GREYLOCK PARTNERS, MERITECH CAPITAL, ALLIANZ

X, TWO SIGMA VENTURES ICT LATER STAGE $114

APPLYBOARD ONTARIO PLUG AND PLAY LLC, ARTIMAN VENTURES, BDC CAPITAL, ANTHOS MANAGEMENT, LLC, FMR LLC, DRIVE CAPITAL ICT LATER

STAGE $100

HOPPER QUÉBECINOVIA CAPITAL, WESTCAP, BDC CAPITAL, INVESSTISMENT QUEBEC, CAISSE DE DEPOT ET PLACEMENT DU QUEBEC, OMERS VENTURES

ICT LATER STAGE $98

VENTUS THERAPEUTICS QUÉBEC GV MANAGEMENT COMPANY, L.L.C., VERSANT VENTURES LIFE

SCIENCESEARLY STAGE $85

JOBBER ALBERTA VERSION ONE VENTURES, OMERS VENTURES, TECH PIONEERS FUND ICT LATER

STAGE $76

TOP HAT ONTARIO

UNION SQUARE VENTURES, GEORGIAN PARTNERS INC., LEADERS FUND INC., INOVIA CAPITAL INC., EMERGENCE CAPITAL PARTNERS, BMO BANK OF MONTRÉAL INNOVATION BANKING GROUP

ICT LATER STAGE $73

SYMEND ALBERTAMISTRAL VENTURE PARTNERS INC., IGNITION PARTNERS, BMO CAPITAL PARTNERS, TELUS VENTURES, SILICON VALLEY BANK, INOVIA CAPITAL, BDC CAPITAL

ICT LATER STAGE $73

16 | TOP 10 DISCLOSED CANADIAN VC DEALS

TOP 10CANADIAN CITIES/ADMINISTRATIVE CENTRES

Total Deals $ Millions

1. Toronto

2. Montréal

3. Vancouver

4. Calgary

5. Kitchener, Waterloo, Cambridge

6. Edmonton

7. Ottawa

8. Halifax

9. Laval

10. St. John’s, NL

164

102

55

33

26

17

15

9

8

6

$1,273

$856

$767

$353

$460

$100

$157

$4

$31

$9

1

8

5

4

6

29

7

103

#1 TORONTO$1.3B164 DEALS

TOP 10 CANADIAN CITIES/ADMINISTRATIVE CENTRES | 17


VC SECTORBREAKDOWN

ICT companies received more than 55% of total VC dollars invested in 2020 ($2.4B over 284 deals), a 40% decrease from the previous year’s $4.0B. Meanwhile, Life Science companies received 26% of dollars invested ($1.1B over 89 deals), a 10% increase from the previous year. Cleantech and Agribusiness companies both saw a decrease in deal flow and dollars invested compared to the previous year.

0

40

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160

200

240

280

320

400

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$300

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$1,200

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$1,800

$2,100

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$2,

259

2017 2018 2018 201820182016 20172016 201720162016

$1,9

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2017 2019 201920192019 2020 2020 20202020

322

269

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316

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22 19$80


ICT LIFE SCIENCES CLEANTECH AGRIBUSINESS

18 | VC SECTOR BREAKDOWN

VC STAGEBREAKDOWN2020 saw the highest average deal size on record for seed-stage investments at $2M, representing a 41% increase from 2019 levels and more than doubling average deal size from 5 years ago. On the other hand, early stage (Series A and B) investments dropped 33% from 2019. Until 2020, early stage investments saw a steady upward trend in average deal size since 2013. With 2020’s level dropping below 2017 levels, it signifies a potential decrease in Series A and B valuations in Canada.


SEED EARLY STAGE LATER STAGE GROWTH EQUITY

VC STAGE BREAKDOWN | 19

$0

$250

$500$750

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

$3,000

20172016 20172016

$212

$1,5

94

$1,9

53

$1,3

53

20182018

262

232

192

85

241

79

85

$1,4

22

59$236

2019 2020

$310

$251

2019 2020 20172016 2018 2019 2020 2019 2020

$1,5

64

$1,3

68

$2,0

27

$147

$1,5

45

98

263

178

154 153

177194

2510 0

30

60

90120

150

180

210

240

300

270

330

360

$2,7

42

$1,7

25

$304

$1,6

67


VENTURE DEBT*HEAT MAP

* VC Debt deals are not included in the overall Canadian VC activity

2020 saw a total $378M in venture debt invested across 64 deals, more than doubling the amount invested with around half the deal count compared the previous year ($182M across 129 deals in 2019), demonstrating a 4x increase in the average venture debt deal size over the last two years.

$80M

$245mOntario

$47MBritish

Columbia $2MAlberta NA

SaskatchewanNA

Nova Scotia

Québec

$2MNew

Brunswick

4

2

1

$2MManitoba

1

124

11

20

$378 MILLION

64 DEALStotal invested into

VENTURE DEBT HEAT MAP | 21


20

VCEXITS

The momentum of VC-backed exits is on track relative to previous years, with a total of 38 exits in 2020, which is only slightly below the 5-year average of 40 exits. 2020 also saw the highest number of IPOs as well as the level of investment, with 4 IPOs totaling $9.2B for the year.

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

0

5

10

15

20

25

30

35

40

50

45

20172016 20172016

$584 $1

,065

20182018

$1,0

33

$1,4

29

2019 2020 2019 2020

32

0 03

33

3936

34

31

$702

$2,15

0

$1,6

00

$9,2

34

M&A* IPO/RTO**

22 | VC EXITS


TOPDISCLOSED VC EXITS


Among the top exits in 2020, a number of other mid-cap Canadian companies in the biotech and pharmaceutical sectors went public in 2020, all on the Nasdaq. The trend points to Canadian companies bypassing the Canadian market and listing directly in US exchanges, and highlights the need for participation from large banks and investment firms to finance and support growing Canadian deals.

TOP DISCLOSED VC EXITS | 23

SELLERS COMPANY BUYER CLOSE DATE $ MIL

DCVC BIO, VIKING GLOBAL INVESTORS, PRESIGHT CAPITAL, STRATEGIC CORPORATE INVESTORS, ANGEL INVESTORS

ABCELLERA IPO ON NASDAQ 2020-12-07 $6,753

FONDS DE SOLIDARITÉ FTQ, VERSANT VENTURES, COWEN HEALTHCARE INVESTMENTS, ORBIMED, REDMILE, BVF PARTNERS, LOGOS CAPITAL, MPM CAPITAL, AMPLITUDE VENTURES

REPARE THERAPEUTICS IPO ON NASDAQ 2020-06-19 $1,522

FACIT, GENESYS CAPITAL MANAGEMENT INC. VARIAN MEDICAL SYSTEMS, ORBIMED, PERCEPTIVE ADVISORS, PIVOTAL BIOVENTURE PARTNERS, ROCK SPRINGS CAPITAL, ADAMS STREET PARTNERS, HEALTHCAP, JJDC, SEROBA LIFE SCIENCES, TPG BIOTECH

FUSION PHARMACEUTICALS IPO ON NASDAQ 2020-06-22 $959

INOVIA CAPITAL NORTH INC. GOOGLE 2020-06-30 $180

SAMSUNG VENTURE INVESTMENT CORPORATION MOBEEWAVE APPLE 2020-08-04 $134

VISTARA CAPITAL PARTNERS, KAYNE CAPITAL PARTNERS, TIME WARNER INVESTMENTS, MARS INVESTMENT ACCELERATOR FUND

YOU.I TV WARNERMEDIA 2020-12-21 $128

FIRST ASCENT VENTURES RUBIKLOUD KINAXIS 2020-06-30 $78

* There were 20 undisclosed VC Exits totaling $21 million in 2020

MOST ACTIVEVC FIRMS & FUNDS

# Rounds

BDC Capital

Real Ventures

Desjardins Capital

MaRS Investment Accelerator Fund

Round13 Capital

Investissement Quebec

Inovia Capital

Panache Ventures

Export Development Canada

New Brunswick Innovation Foundation

111302626212018171515

Size of Total Rounds* ($M)

$910 $119 $167 $61 $144 $314 $704 $134 $110 $7

MOST ACTIVE PRIVATE INDEPENDENT FIRMS # ROUNDS SIZE OF TOTAL ROUNDS*(CDN$ MIL)

REAL VENTURES 30 $119

ROUND13 CAPITAL 21 $144

INOVIA CAPITAL 18 $704

PANACHE VENTURES 17 $134

BLUESKY EQUITY LTD. 13 $30

CYCLE CAPITAL 10 $70

ACCELERATE FUND 10 $15

BRIGHTSPARK VENTURES 9 $40

RELAY VENTURES 9 $36

MISTRAL VENTURE PARTNERS 8 $191

24 | MOST ACTIVE FIRMS & FUNDS


MOST ACTIVE GOVERNMENT FUNDS # ROUNDS SIZE OF TOTAL ROUNDS*(CDN$ MIL)

BDC CAPITAL 111 $910

MARS INVESTMENT ACCELERATOR FUND 26 $61

INVESTISSEMENT QUEBEC 20 $314

BDC INDUSTRIAL, CLEAN AND ENERGY TECHNOLOGY VENTURE FUND 15 $163

EXPORT DEVELOPMENT CANADA 15 $110

NEW BRUNSWICK INNOVATION FOUNDATION 15 $7

BDC IT VENTURE FUND 12 $379

INNOVACORP 8 $8

MOST ACTIVE PENSION, RETAIL, CORPORATE & OTHER PUBLIC FUNDS # ROUNDS SIZE OF TOTAL ROUNDS*

(CDN$ MIL)

DESJARDINS CAPITAL 26 $167

FONDS DE SOLIDARITÉ FTQ 10 $231

TELUS VENTURES 7 $245

FONDS INNOVEXPORT 6 $63

PFM CAPITAL 6 $16

CAISSE DE DEPOT ET PLACEMENT DU QUEBEC 5 $260

OMERS VENTURES 5 $218

CONEXUS VENTURE CAPITAL 5 $35

GREENSOIL INVESTMENTS 4 $43

NATIONAL BANK OF CANADA 3 $6

MOST ACTIVE FIRMS IN VC DEBT DEALS # ROUNDS SIZE OF TOTAL ROUNDS*(CDN$ MIL)

CIBC INNOVATION BANKING 17 $146

VENBRIDGE LTD. 13 $3

ESPRESSO CAPITAL 8 $16

DESJARDINS CAPITAL 7 $14

FONDS DE SOLIDARITÉ FTQ 4 $37

TIMIA CAPITAL 3 $7

MOST ACTIVE FIRMS & FUNDS | 25

FOREIGN VCsin canada

26 FOREIGN VCs IN CANADA | 27


Investor State Number of Deals

Size of Total Rounds

($M)HIKE VENTURES CA 5 $11

AZURE CAPITAL PARTNERS CA 4 $14

PLUG & PLAY VENTURES CA 3 $133

Y COMBINATOR CA 3 $26

VERSANT VENTURES CA 2 $224

Investor State Number of Deals


($M)ORBIMED ADVISORS NY 3 $368

WHITE STAR CAPITAL INC. NY 3 $87

ROCK SPRINGS CAPITAL MANAGEMENT MD 2 $224

DRIVE CAPITAL OH 2 $123

UNITED STATESWEST

EAST

Investor Number of Deals


($M)GLOBAL FOUNDERS CAPITAL 2 $9

EUROPE



($M)ALTAIR CAPITAL 2 $45

MIDDLE EAST



($M)VERTEX VENTURES 2 $44

ASIA

CVCA MEMBERSBY AUM


PRARIES

ONTARIO

BRITISH COLUMBIA

QUEBECInvestor AUM

FONDS DE SOLIDARITÉ FTQ $1B AND ABOVE

BDC CAPITAL $1B AND ABOVE

CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC $1B AND ABOVE

INOVIA CAPITAL INC. $1B AND ABOVE

CYCLE CAPITAL MANAGEMENT $501M TO $1B

REAL VENTURES $251M TO $500M

CTI LIFE SCIENCES $101M TO $250M

Investor AUM

WESTCAP MGT. LTD. $501M TO $1B

CONEXUS VENTURE CAPITAL $26M TO $100M

RED LEAF CAPITAL 0 TO $25M Investor AUM

RELAY VENTURES $501M TO $1B

ROUND 13 CAPITAL $501M TO $1B

LUMIRA VENTURES $251M TO $500M

PORTAG3 VENTURES $251M TO $500M

RADICAL VENTURES $251M TO $500M

ATLANTICInvestor AUM

ISLAND CAPITAL PARTNERS 0 TO $25M

Investor AUM

PANGAEA VENTURES $101M TO $250M

VERSION ONE VENTURES $101M TO $250M

YALETOWN PARTNERS INC. $101M TO $250M

CVCA MEMBERS BY AUM | 2928

If your firm would like to be included in this list for the 2021 VC report, please email [email protected]

mailto:research%40cvca.ca?subject=

TOP 25venture-backed companies by total funds raisedThese are CVCA’s Top 25 venture-backed companies by the amount of funds raised as of Q4 2020. Collectively, these 25 companies have raised $6.2B in total funding and support 9,539 jobs in Canada. These companies are on track to become Canada’s next Unicorns (valuation of $1B+) following the footsteps of Shopify, Kik, and Lightspeed POS.

30

Rank Company Founded Total Funding*

Number of Employees Industry Headquarters

1 VERAFIN 2003 $515M 548 FINTECHST. JOHN'S, NEWFOUNDLAND AND LABRADOR

2 ENERKEM 2007 $464M 237 CLEANTECH MONTRÉAL, QUÉBEC

3 CLIO 2011 $352M 552 LEGAL TECH BURNABY, BRITISH COLUMBIA

4 ELEMENTAI 2008 $341M 90 AI MONTRÉAL, QUÉBEC

5 HOPPER 2014 $325M 376 TRAVEL MONTRÉAL, QUEBEC

6 LIGHTSPEED POS 2005 $324M 1260 FINTECH MONTRÉAL, QUÉBEC

7 COVEO 2005 $282M 614 AI QUÉBEC CITY, QUÉBEC

8 1PASSWORD 2014 $265M 310 ICT TORONTO, ONTARIO

9 TOUCHBISTRO 2011 $256M 442 FINTECH TORONTO, ONTARIO

10 APPLYBOARD 2015 $242M 667 EDTECH KITCHENER, ONTARIO

11 HOOTSUITE 2008 $238M 1477 ICT VANCOUVER, BRITISH COLUMBIA

12 MILESTONE PHARMACEUTICALS 2003 $227M 37 BIOTECH &

PHARMA MONTRÉAL, QUÉBEC

13 WEALTHSIMPLE 2014 $227M 561 FINTECH TORONTO, ONTARIO

14 CHINOOK THERAPEUTICS 2013 $226M 101 BIOTECH VANCOUVER, BRITISH

COLUMBIA

15 CLEARBANC 2015 $226M 273 FINTECH TORONTO, ONTARIO

16 FUSION PHARMACEUTICALS 2017 $225M 63 BIOTECH &

PHARMA HAMILTON, ONTARIO

17 REPARE THERAPEUTICS 2016 $200M 95 BIOTECH &


18 DALCOR PHARMACEUTICALS 2015 $195M 12 BIOTECH &


19 ECOBEE 2007 $172M 480 IOT TORONTO, ONTARIO

20 ALAYA CARE 2014 $172M 371 HEALTH TECH MONTRÉAL, QUÉBEC

21 REAL MATTERS 2004 $158M 47 REAL ESTATE TECH

MARKHAM, ONTARIO

22 VENA SOLUTIONS 2011 $148M 443 FINTECH TORONTO, ONTARIO

23 BREATHER 2012 $147M 68 REAL ESTATE TECH

MONTRÉAL, QUÉBEC

24 MIOVISION TECHNOLOGIES

2005 $147M 243 AI KITCHENER, ONTARIO

25 LEDDARTECH 2007 $144M 172 AUTONOMOUS VEHICLES

QUEBEC CITY, QUÉBEC

TOP 25 VENTURE-BACKED COMPANIES BY TOTAL FUNDS RAISED | 31


*Total funding amount based on disclosed investments

32

PARTICIPATINGDATA CONTRIBUTORSCVCA thanks the following firms who participated in its Q4 2020 survey.

VENTURE CAPITAL FIRMS7 Gate Ventures

AmorChem Fund

Amplify Capital

Amplitude Ventures

Anges Quebec

Anges Quebec Capital

AVAC Ltd.

Aventrock Ventures

Azure Capital Partners

BCF Ventures

Brightspark Ventures

CIBC Innovation Banking

CIC Capital Ventures

Clanton Capital Inc.

Conexus Venture Capital

CTI Life Sciences

Cycle Capital Management

Disruption Ventures

EnerTech Capital

Espresso Capital Ltd.

Evok Innovations

Fastbreak Ventures

Ferst Capital

FACIT

First Ascent Ventures

Fonds Innovexport

Framework Ventures

Freycinet Ventures

Georgian Partners

Good News Ventures

Hike Ventures

Information Venture Partners

Innovacorp

inovia Capital

Island Capital Partners

Klass Capital

Luge Capital

Lumira Ventures

MaRS IAF

McRock Capital

Mistral VP

NAventures

New Brunswick Innovation Foundation

Panache Ventures

Pangaea Ventures

Plank Ventures

Portag3 Ventures

Quark Venture

Real Ventures

Relay Ventures

Renewal Funds

Rhino Ventures

Ripple Ventures

Roadmap Capital

Round 13 Capital

ScaleUP Ventures

Tactico Inc.

Tandem Expansion

TandemLaunch

TELUS Ventures

Top Renergy

Trellis Capital

V3-Ventures

Valhalla Angels

Vanedge Capital Partners

Version One Ventures

White Star Capital

PARTICIPATING DATA CONTRIBUTORS | 33

If you would like to have your firm included in future reports, please click here.

PRIVATE EQUITY & LSVCC FIRMS

LIMITED PARTNERS

AIP Private Capital

ARC Financial

Ardenton Capital Corporation

ATB Capital

BDC Growth Equity

BDC Growth & Transition Capital

Birch Hill Equity Partners

BMO Capital Partners

Bond Capital

CAI Capital Partners

Canadian Business Growth Fund

Capital Financière Agricole

Crédit Mutuel Equity

Clearspring Capital Partners

First West Capital

Founders Group of Food Companies Inc.

Fulcrum Capital Partners

Highland West Capital

InstarAGF Asset Management

Ironbridge Equity Partners

Kayne Capital

Killick Capital Inc.

Lex Capital Management

m2s Capital

Mink Capital

MKB & Co

Mosaic Capital Corporation

Novacap Management Inc.

PenderFund Capital Management

Persistence Capital Partners

PFM Capital Inc

PRIVEQ Capital Funds

Regimen Equity Partners

Seafort Capital

Searchlight Capital Partners

TIMIA Capital Corp

Tricor Pacific Capital Ltd.

TriWest Capital Partners

Westcap Mgt. Ltd

Western Investment Company of Canada Limited

XPND Capital

Alberta Enterprise Corporation

Alberta Teachers’ Retirement Fund (ATRF)

BDC Venture Capital

Bluesky Equities

Desjardins Capital

Fondaction

Fonds de solidarité FTQ

Fonds de solidarité FTQ (Regional)

HarbourVest Partners (Canada) Ltd

Investissement Quebec

Kensington Capital Partners Ltd.

Northleaf Capital Partners

Ontario Capital Growth Corporation

Ontario Teachers’ Pension Plan (OTPP)

Teralys Capital

http://bit.ly/CVCA_Data_Contribution

CVCA METHODOLOGY:VENTURE CAPITALVENTURE CAPITAL DATA:Verified completed equity, quasi-equity venture capital and venture debt deals only (non-equity or project-based government funding, pharmaceutical development deals, venture capital-backed acquisitions, and angel financing are not included). All figures are in CAD unless otherwise specified.

34 | CVCA METHODOLOGY: VENTURE CAPITAL

VC DEVELOPMENT STAGES

VENTURE DEBT SHORT-TO-MEDIUM TERM, NON-DILUTIVE DEBT INSTRUMENT WITH NO EQUITY RIDER.

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.

GROWTHSIGNIFICANT MINORITY INVESTMENT TO DRIVE GROWTH AND SCALE WHICH CAN BE COMBINED WITH A SECONDARY TRANSACTION TO FACILITATE LIQUIDITY FOR EXISTING VC INVESTORS

VC SECTORS

ICTCOMPUTER 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.

CLEANTECHENERGY 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

AUTHORSChristiane WherryVICE PRESIDENT, RESEARCH

[email protected]

JON JACKSONHEAD OF COMMUNICATIONS

[email protected]

David kornackiMANAGER, RESEARCH & PRODUCT

[email protected]

IZADELLA STA. ROMANAMARKETING & BRAND COORDINATOR

[email protected]

cvca.ca

2020 YEAR IN REVIEW CANADIAN VENTURE CAPITAL MARKET OVERVIEW

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