CVCA H1 Quarterly Exclusive: PE & VC Review

CVCA H1 Quarterly Exclusive: PE & VC Review
September 28
11:56 2017

These articles have been a part of a new series, CVCA Quarterly Exclusive, written and published by the Canadian Venture Capital and Private Equity Association. The series provides an analysis of the CVCA’s most recently published VC & PE Canadian Market Overview through expert commentary and perspectives.

H1 2017: Canadian Venture Capital

CVCA H1 2017 Quarterly Exclusive: Behind the Robust Return of VC Exits

2016 was undoubtedly a huge year for venture capital investment activity in Canada. While 2017 numbers are indeed on pace to match 2016 numbers, one element driving the VC ecosystem so far, this year that’s particularly worthy of discussion is the healthy reappearance of exits Canada’s VC market has witnessed in the first two quarters of 2017. In fact, in the first half of 2017, Canada’s seen 21 exits totaling $900M, compared to 32 exits totaling $584 in all of 2016, which was also a record low year for IPOs in Canada.

In part one of the series, the CVCA chats with VC investors behind the Real Matters Inc. and Zymeworks Inc. IPOs and other industry thought leaders to dig deeper into Canada’s current VC exit environment, and what this means for our ecosystem going forward.

CVCA H1 2017 Quarterly Exclusive: Top VC Deal Profile – Repare Therapeutics Inc.

When healthcare VC investment firm Versant Ventures went looking for its next major biotech investment, it wanted a company that was doing more than just addressing symptoms of a disease, but preparing for all out war against it.

The Repare Therapeutics financing was the second-largest VC deal in the first half of 2017, according to CVCA InfoBase, behind the CAD $141M Series A investment in Quebec-based Element AI.

In Part two of the Quarterly Exclusive series, we chat with Versant Ventures and dive into the deal with Repare Therapeutics Inc.

CVCA H1 2017 Quarterly Exclusive: Active VC Investor Profile – Espresso Capital Ltd.

When Espresso Capital opened its doors in 2009, on the heels of the global financial crisis, its main business was providing tax credit financing at a time when traditional lending options had dried up.

Espresso has invested nearly $200M in loans to date to more than 200 companies and has about 50 companies it its current portfolio, many of which are repeat customers.

In Part three of the series, we chat with Espresso Capital and dig into the deals that pushed the firm to the most active VC firm in H1 2017.

CVCA H1 2017 Quarterly Exclusive: Top VC Deal Profile – Element AI

One of the biggest, if not THE biggest story of H1 2017 on the VC side, was the historic $141M Series A investment in Montreal-based Element AI.

BDC Capital co-invested in the Series A with Real Ventures. The co-investment was one of nine players in the syndicate, led by California-based Data Collective and including an investment from another CVCA member, National Bank Financial.

In four of the Quarterly Exclusive series, we chat with Karl Reckziegel, Vice President Funds and Co-investments, BDC Capital, who to helped paint the picture of why interest in Element was at fever pitch levels.

H1 2017: Canadian Private Equity

CVCA H1 2017 Quarterly Exclusive: Rebound Year for PE Exits

The recently released H1 2017 VC & PE Canadian Market Overview noted a conspicuous spike in private equity exits. With a whopping 80 exits seen in the first half of this year alone, Canada has seen its biggest year for PE exits since 2013.

According to the CVCA’s Research Director, Darrell Pinto, the rebound in Canadian exits is derivative of a global phenomenon that this asset class has been experiencing, namely increasing institutional allocations to private equity via mega-buyout funds (funds raising more than $5 billion).

We chat with PE thought leaders about Canada’s current PE exit environment, and what this means for our ecosystem going forward.

CVCA H1 2017 Quarterly Exclusive: PE Market Bounces Back

Compared to VC activity in Canada, PE activity has more-or-less remained flat in the last few years.

CVCA Research Director, Darrell Pinto, recently appeared on Bloomberg TV Canada’s Bloomberg Markets, and provided some insight about shifting trends in traditional PE spaces.

The second part of our new Quarterly Exclusive series, we analyze Canada’s current PE sector environment and include some forward-looking statements.

CVCA H1 2017 Quarterly Exclusive: Active PE Investor Profile – Fondaction CSN

When CoPower launched in 2013, it was with a recognition that many viable clean energy projects struggled to find financing. Investors were interested in the low-carbon economy, but struggled to find places to put their money to try to help move it forward.

CoPower was one of a handful of “green” investments Fondaction CSN funded in H1 2017, making it one of the top three most active private equity investors in the period. Fondaction made 18 deals in the first six months of the year, valued at a total of $305M.

In three of our Quarterly Exclusive series, the CVCA explores some of the “green” investments Fondaction participated in the first half of 2017.

CVCA H1 2017 Quarterly Exclusive: Behind Québec’s Booming Agri-Forestry Industry

Record private investment in the province’s agri-forestry sector were highlighted in the CVCA & Réseau Capital’s H1 2017 Québec Market Overview with investment in the 6-month period higher than each of the previous years since 2013.

There were 12 deals in the agri-forestry sector in Québec with a total value of $859M, the largest sector share during this period and more than twice the amount compared to the second place industrial and manufacturing sector; which only capured $319M (49 deals).

In part four of our series, the CVCA explores the two deals in H1 2017 that pushed the agri-forestry sector ahead of the pack.

To read more about venture capital and private equity activity in the first half of 2017, read the full CVCA H1 2017 VC & PE Canadian Market Overview here and the Quebec Market Overview here.

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