We recently interviewed with Techcrunch on Canada’s booming startup market alongside the red hot global VC investment landscape. Canada is in a venture explosion today, leading to results that are “unprecedented” for the country.
In the first half of 2021, Canadian startups raised $6.3 billion across 414 deals, per CB Insights data. Both numbers compare favorably to Canada’s 2020 results, when 617 deals led to $2.9 billion in total capital raised by Canadian startups. Canada has already bested its previous record in venture dollars invested ($4.3 billion, 2019), and is on pace to beat its all-time deal count as well (720, 2018).
Venture capital is flowing into the cities in Canada you know best, along with some smaller markets that non-Canadians may be less familiar with. Toronto, Vancouver, and Montreal are leading the way in terms of capital raised in the country. Calgary, the Prairies and the Maritimes on the country’s East Coast are also picking up a lot of momentum, especially after the massive $2.75 billion Verafin exit to Nasdaq last year.
For early-stage Canadian startups that are going after global markets in hype industries, they are getting high valuations (i.e., >40x sales). For smaller markets or very Canadian-focused companies, multiples are closer to 10x-15x sales but we are still seeing crazy multiples all over the market.
As Ruffolo points out, this puts Canada in an enviable position: “The Canadian market is one such beneficiary as the quality of the opportunities is also viewed very favorably by U.S. capital sources. Not only is the engineering talent in Canada viewed as extremely strong, but proximity, language and culture play a role as well.”
To read the full article, click this link.
Original Techcrunch ‘The Exchange’ article was written by Alex Wilhelm and Anna Heim: https://techcrunch.com/2021/07/22/canadas-startup-market-booms-alongside-hot-global-vc-investment/