Yaletown Partners shares newfound opportunity to enhance tech growth in Canada by closing investment gaps

July 06
12:05 2016

Yaletown Partners has released a detailed study on Canada’s financing activity, revealing significant gaps in capital available for the country’s technology companies. Access to capital, talent and markets are the three key drivers of Canada’s innovation ecosystem. The report shows that gaps in Canada’s capital supply cause Canadian companies to scale more slowly, take longer to exit, and achieve smaller outcomes than U.S. technology peers.

“We took a comprehensive look at technology financing in Canada, looking not just at stage of financing or size, but at the impact of capital flow over time,” said Eric Bukovinsky, Principal, Yaletown Partners. “We found that the capital supply in Canada is both insufficient and inadequately distributed beyond early stage. Canada’s biggest opportunity to realize greater value from our technology sector lies in closing this growth capital gap, currently at a billion dollars and growing.”

The report reflects Yaletown’s first-hand investment experience as one of Canada’s most active private technology investors, presently raising a new $135 million fund. Capital for seed and early-stage companies is quite available in Canada, however once companies reach the next stage of growth, there is a capital supply gap for $5 to $25 million financings to accelerate growth. Yaletown’s investments in emerging-growth companies have demonstrated the ability to accelerate growth, shorten exit timeframes and earn strategic premiums by providing adequate access to capital.

Read the full Press Release

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