Funding from VCs up in 2017 – PwC/CB Insights report

Veronica Silva
February 6, 2018

Canadian venture capital investment, measured in US$, reached an all time high last year, according to the latest report by PwC Canada and CB Insights. Artificial intelligence and fintech firms were the most attractive for VC investors, who poured up to US$2.7 billion into 333 deals in 2017, up 7% from 2016. Average VC funding to Canada-based firms surged 31% to $10.9 million in 2017 from $8.3 million in 2016, according to the PwC-CB Insights Q4 MoneyTree report. However, the number of deals declined 12%. Though the last quarter of 2017 showed softer investment, it was the second-largest quarter in terms of funding. Across 76 deals in Q4/17, a total of $757 million had been disbursed. This is a decline of 14% from the same period in 2016. Deal activity in the last quarter of 2017 also decreased 22% from the 98 deals recorded in the same period of 2016. In terms of financing the sectors, funding of the Internet declined as related deal activity suffered a drop of 20.5% to 132 deals in 2017 from 166 in 2016. Investments in Canadian AI firms reached $252 million in 2017 across 31 deals. Funding was up 460%, largely due to a $100 million mega-round of funding in the second quarter. Funding for fintech inched up to $456 million in 2017 from $450 million in 2016. Deals declined to 37 firms from 43 in 2016. Canadian mobile companies saw a robust growth of 66% in funding to reach $434 million despite the year showing eight less deals. Healthcare firms capped 2017 with funding down by 24% but forging an additional six deals. Across regions, Montreal got $800 million for 63 deals, increasing 64% from 2016. Toronto registered dual declines with funding decreasing 22% and deals down by 11. Funding in Vancouver increased 4% but deals were down by 10.

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