VC-backed deals rebound, hit new heights

VC-backed deals rebound, hit new heights

VC-backed deals rebound, hit new heights The flow of funds into venture capital-backed firms has overturned its two quarter-decline during the third quarter of the year.

PwC Canada and CB Insights’ MoneyTree report revealed that more than US$858 million worth of funding was injected by investors into Canadian start-up companies in 81 separate deals. The number of deals was up by 21% while the overall deal value expanded by 110% from the previous quarter.

More so, the report showed a whopping 404% increase in quarterly funding to start-ups in the mobile space, hitting US$131 million. Canadian healthcare firms also saw improvements in funding and deal activity. Meanwhile, firms involved in the internet space reflected a 149% increase in funding even with the flat growth in the number of deals.

PwC Canada national technology sector leader Chris Dulny said with this momentum, Canada can look forward to a robust close to the year.

"We're happy to see an increase in investments in Canadian technology companies this past quarter. Canada is truly a global technology force and a place where companies can turn their vision into reality as support from investors continues to flow," Dulny said.

For the past three quarters, Canadian AI companies have received US$191 million in 22 deals. Fintech deals are also on looking solid, amassing US$200 million across 27 deals in the same period.

CB Insights CEO and co-founder Anand Sanwal said the AI and fintech sectors are responsible for the VC industry's good comeback from a lacklustre quarter.

"In addition, there was strength at the early and later stages of Q3, which buoyed funding and which is also a good sign for the Canadian venture ecosystem."

In terms of geography, Toronto saw deal activity go up, recording US$279 million investment across 32 deals.  Vancouver and Montréal both saw flat funding totals relative to the previous quarter.

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