VC & PE CANADIAN MARKET OVERVIEW // H1 2017 · PDF file500 Startups Canada Mars Innovation Amorchem Venture Fund McRock Capital Arctern Ventures New Brunswick Innovation Foundation

VC & PE CANADIAN MARKET OVERVIEW

// H1 2017

VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // H1 2017 | 2

CONTENTS

PARTICIPATING DATA CONTRIBUTORS ............................................................................... 3

FOREWORD ...................................................................................................................................... 4

VENTURE CAPITAL CANADIAN MARKET OVERVIEW .................................................... 5 VENTURE CAPITAL HIGHLIGHTS ................................................................................................................................ 6

VENTURE CAPITAL HEAT MAP ..................................................................................................................................... 7 QUARTER-OVER-QUARTER VC INVESTMENT ACTIVITY ......................................................................... 8 VC ACTIVITY BY DEAL SIZE ............................................................................................................................................. 9 TOP DISCLOSED CANADIAN VC DEALS ............................................................................................................... 10 TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES .................................................................... 11 VC SECTOR BREAKDOWN ............................................................................................................................................. 12 VC STAGE BREAKDOWN ................................................................................................................................................. 13 VC EXITS ....................................................................................................................................................................................... 14 TOP DISCLOSED VC EXITS .............................................................................................................................................. 15MOST ACTIVE VC FIRMS // FUNDS ........................................................................................................................ 16

PRIVATE EQUITY CANADIAN MARKET OVERVIEW ...................................................... 17 PRIVATE EQUITY HIGHLIGHTS .................................................................................................................................... 18

PRIVATE EQUITY HEAT MAP // BUYOUT & ADD-ON DEALS ONLY ............................................... 19

PRIVATE EQUITY HEAT MAP // ALL PE DEALS ............................................................................................. 20 QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY ....................................................................... 21 TOP DISCLOSED CANADIAN PE DEALS............................................................................................................... 22 PE ACTIVITY BY DEAL SIZE ............................................................................................................................................ 23 TOP CANADIAN CITIES // ADMINISTRATIVE CENTRES .......................................................................... 24 PE SECTOR BREAKDOWN .............................................................................................................................................. 25 PE EXITS ....................................................................................................................................................................................... 26 TOP CANADIAN PE EXITS ............................................................................................................................................... 27MOST ACTIVE PE INVESTORS .................................................................................................................................... 28

CVCA METHODOLOGY ............................................................................................................. 29 VENTURE CAPITAL .............................................................................................................................................................. 29 PRIVATE EQUITY ............................................................................................................................................................. 30, 31

AUTHORS, ABOUT CVCA AND CONTACT INFO ............................................................. 32


CVCA thanks the following firms who participated in itsQ2 2017 survey.

PARTICIPATING DATA CONTRIBUTORS

500 Startups Canada Mars Innovation

Amorchem Venture Fund McRock Capital

Arctern Ventures New Brunswick Innovation Foundation

AVAC Ltd. Northhumberland CFDC

Avrio Ventures Management Corp OMERS Ventures

Azure Capital Partners Pangaea Ventures

Brightspark Ventures Pelorus Venture Capital Ltd.

Build Ventures Plaza Ventures

Chrysalix Venture Capital Quark Venture

CTI Life Sciences Real Ventures

Cycle Capital Management Relay Ventures

Difference Capital Roadmap Capital

Espresso Capital ScaleUP Ventures

Eventi Capital Partners Summerhill Ventures Partners

Evok Innovations Tactex Asset Management Inc.

Ferst Capital Tandem Expansion

Fight Against Cancer Innovation Trust TandemLaunch

Freycinet Ventures Top Renergy

Georgian Partners Trellis Capital

Green Century Investment TVM Life Science Management Inc.

GreenSoil Investments Vancouver Founders Fund

iGan Partners Vanedge Capital Partners

Impression Ventures VentureLink Funds

Information Venture Partners Versant Ventures

Innovacorp Wellington Financial

iNovia Capital White Star Capital

Investeco Capital Corp Whitecap Venture Partners

MaRS Catalyst Fund Yaletown

MaRS IAF

PARTICIPATING VENTURE CAPITAL FIRMS

32 Degrees Capital Parallel 49 Equity

AIP Private Capital Pender West Capital Partners

Altas Partners LP Persistence Capital Partners

Arc Financial PFM Capital Inc

ATB Capital Pillarfour Capital

Birch Hill Equity Partners PRIVEQ Capital Funds

Brookfield Asset Management Regimen Equity Partners

Carpedia Capital Roynat Capital Inc.

Clairvest Group Inc. Seacliff Group

First West Capital Seafort Capital

Fulcrum Capital Partners Searchlight Capital Partners

GrowthWorks Atlantic Venture Fund Ltd. Stratgem Innovative Capital Partners

Growthworks Working Opportunity Fund (EVCC) Ltd. Swander Pace Capital

Hawthorne Capital Inc. Tera Capital Corporation

Highland West Capital TorQuest Partners

InstarAGF Asset Management Tricor Pacific Founders Capital

Ironbridge Equity Partners TriWest Capital

Lex Capital Management VERTU Capital

m2s Capital Vistara Capital Partners

Mink Capital Waterton Global Resource Management Inc.

Mosaic Capital Corporation Westcap Mgt. Ltd

Novacap Management Inc. XPND Capital

OMERS Private Equity Inc.

PARTICIPATING PRIVATE EQUITY FIRMS

Alberta Teachers’ Retirement Fund (ATRF)

BDC Capital Inc

Caisse de dépôt et placement du Québec (CDPQ)

Capital Régional et Coopératif Desjardins

Dancap Private Equity Inc

Fondaction CSN

Fonds de solidarité FTQ

Fonds de solidarité FTQ (Regional)

Investissement Quebec

Kensington Capital Partners Limited

Northleaf Capital Partners

Ontario Teachers’ Pension Plan (OTPP)

Teralys Capital

PARTICIPATING LIMITED PARTNERS

If you would like to have your firm included in future reports, please contact either [email protected] or [email protected]


FOREWORD

Strong VC Investment Pace Continues with Revival in Exits After Long Hiatus; Huge Quarter for PE and a Breakout Year for Exits

VENTURE CAPITALVenture capital investment in Canada saw a huge year in 2016; particularly in the first half, when $1.7B was invested across 275 deals. VC activity in H1 2017 indicates the ecosystem is on pace to see another remarkable year for VC investment. Starting off strong in Q1 2017 with $713M invested, Q2 saw 28% spike in activity with $913M invested over 131 deals. With $1.6B invested over 260 deals in the first half of 2017, VC investment and activity in Canada is indicating numbers will meet or exceed last year’s extraordinary performance.

Of note, the VC market in Canada has seen a healthy reappearance of exits in the first two quarters of 2017 with 21 exits totaling $900M compared to 32 exits totaling $584M last year. So far, the largest exit in 2017 was the $393M acquisition of Montreal-based Luxury Retreats International by Airbnb. There were two VC-backed IPOs signalling a rebound of the IPO market through the first half of the year: Real Matters Inc. (TSE: REAL) and Zymeworks Inc. (TSE/NYSE: ZYME).

Accounting for a huge 68% of all VC deals in H1 2017, the information and communications technology (ICT) sector saw the biggest share of total VC dollars with $1.1B invested across 158 deals. Life science companies received the second highest VC investment in the first half of 2017 with $344M over 52 deals (21% of total invested), while cleantech placed third with $84M over 18 deals (5% total invested).

Ontario-based companies received $620M in VC dollars invested in H1, 38% of total VC investment. Quebec received roughly a third at $544M, while British Columbia investment accounted for a quarter of all dollars invested at $410M.

PRIVATE EQUITYCanadian private equity has seen a major bounce-back in the first half of 2017, with $13.9B invested across 277 deals—already surpassing the $13.8B invested in all of 2016. A staggering $8.9B was invested over 170 deals in the second quarter of 2017, which is 79% higher than the $5B invested in Q1, and an astounding 164% greater than Q2 2016. In fact, Q2 2017 investment is the highest quarter since Q3 2015 when $11.4B was invested.

In H1 2017, PE saw 80 exits, exceeding the number of exits in each of the last four years. There were 61 exits in 2016, 66 in 2015, 66 in 2014 and 75 in 2013. The 80 exits in H1 2017 includes the $2.2B exit from Montreal-based Garda World Securities, sold to Rhone Capital by Apax Partners, and two IPOs: the $445M dual listing of the iconic Canada Goose (TSE/NYSE: GOOS) as well as the $100M debut of STEP Energy Services Ltd. (TSE: STEP).

The oil, gas and power sector – once a thriving sector for PE investment – has seen a consistent quarter-over-quarter slowdown, capturing only a stark 9% of all PE deals in the first half of 2017—a 19% drop from 2013. Conversely, Canada is seeing a steadily increasing pick-up in PE investment in both the industrial and manufacturing sector and the information and communications technology sector (ICT). In fact, more than 23% of all PE deals in H1 2017 were in the industrial and manufacturing sector, compared to only a 14% share in 2013. Additionally, ICT companies captured 17% of PE deals in H1, compared to a 10% share in 2013.

VC investment sees $1.6B invested over 260 deals with 21 exits totaling $900M in the first half of 2017. PE investment sees $13.9B invested over 277 deals with 80 exits in H1 2017; already exceeding the number of exits in each of the last four years


VENTURE CAPITAL CANADIAN MARKET OVERVIEW

// H1 2017


VENTURE CAPITAL HIGHLIGHTS // H1 2017

Strong pace of VC investment continues with $913M invested in 131 deals in Q2 2017—a solid 28% increase in dollars invested compared to both the previous quarter ($713M) as well as the same quarter last year ($712M)

This brings the total invested in the first half of 2017 to $1.6B over 260 deals which is almost equal to the $1.7B over 275 deals during the same time last year

The average deal size in Q2 spiked to $7.0M, up 26% from the previous quarter ($5.5M). This is also a high-water mark compared to the average deal sizes in 2013 ($5.2M), 2014 ($4.7M), 2015 ($4.2M) and 2016 ($6.0M)

The top 10 VC deals accounted for $540M or 59% of total dollars disbursed in Q2—just slightly higher than the 56% share of total dollars disbursed in both Q1 2017 ($410M out of $713M) and Q2 2016 ($400M out of $712M)

Montreal-based Element AI raised a record series A round of $141M from a syndicate of investors that included CVCA members Real Ventures and BDC Capital

Mega deals ($50M+ deal size) included 8 deals totaling $582M or 36% of total dollars invested in the first half of

2017. Comparatively, mega deals accounted for 31% of total dollars invested in 2016, and only 15% in 2015, 16% in 2014 and 23% in 2013.

$620M or 38% of dollars invested this year were in Ontario-based companies with another third ($544M) going to Quebec-based companies and a quarter ($410M) to BC-based companies

ICT companies grabbed the lion’s share (68%) of total dollars invested in the first half of 2017 ($1.1B over 158 deals); this compares to a 61% share in 2016, 58% in 2015, 64% in 2014 and 56% in 2013

The market for exits has seen a healthy return in 2017; so far there have been 21 exits totaling $900M compared to 32 exits totaling $584M last year

The largest exit was the $393M acquisition of Montreal-based Luxury Retreats International by Airbnb; investors included CVCA members iNovia Capital and Teralys Capital

After a long hiatus, there were 2 VC-backed IPOs: Real Matters Inc. on TSX and Zymeworks Inc. on both the TSX/NYSE

Key Findings:


6842

24

113 15

$544m

$620MOntario

$410MBC $9M

Alberta

$5MManitoba

Québec

Nova Scotia$23M

New Brunswick

Newfoundland& Labrador

$8M

$1M

$6MSaskatchewan

1

87

$1.6btotal260 dealstotal #

VENTURE CAPITAL HEAT MAP // H1 2017


QUARTER-OVER-QUARTER VC INVESTMENT ACTIVITY // 2013-H1 2017

TOTAL:365 DEALS

$1.9B

TOTAL:436 DEALS

$2.0B

TOTAL:545 DEALS

$2.3B

TOTAL:535 DEALS

$3.2B

TOTAL:260 DEALS

$1.6B

$ Millions Invested

# Deals

2013 2014 2015 2016 2017

0

20

40

60

80

100

120

140

160

180

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1000

Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

$41

4

$33

9

$6

01

$54

0

$35

8

$41

4

$6

54

$6

13

$41

9

$6

65

$6

21

$58

5

$9

56

$71

2

85

81

10297

110

93

111

122 133

140 142

130

128

147

Q3

$6

83

Q4

$8

41

Q1

$71

3

Q2

$9

13

127133 131129


Mega-deals dominated by the

($141M) deal in quebec-based

element ai inc.

VC ACTIVITY BY DEAL SIZE // H1 2017

$1

Total Deals $ Millions

< $100K

$100 - $500K

$500K - $1M

$1M - $5M

$5M - $20M

$20M - $50M

$50M +

16

44

30

80

50

9

8

$11

$20

$194

$513

$304

$582


TOP DISCLOSED CANADIAN VC DEALS // H1 2017

COMPANY PROVINCE DISCLOSED VC FIRM(S) SECTOR STAGE $ MIL.

ELEMENT AI INC. QUÉBECBDC CAPITAL INC., DATA COLLECTIVE, FMR LLC (FIDELITY), HANWHA INVESTMENT CORP, INTEL CAPITAL, MICROSOFT VENTURES, NATIONAL BANK OF CANADA, NVIDIA CORPORATION, REAL VENTURES

ICT EARLY STAGE VC $141

REPARE THERAPEUTICS INC. QUÉBECVERSANT VENTURE MANAGEMENT, LLC, MPM CAPITAL, BDC CAPITAL INC., CELGENE EUROPEAN INVESTMENT CO. LLC, FONDS DE SOLIDARITÉ FTQ, FONDS RÉGIONAUX DE SOLIDARITÉ FTQ

LIFE SCIENCES EARLY STAGE VC $91

VISION CRITICAL COMMUNICATIONS INC. BC GEORGIAN PARTNERS INC., W CAPITAL PARTNERS ICT SECONDARY VC $76

VISIER INC. BC ADAMS STREET PARTNERS, LLC, FOUNDATION CAPITAL, SORENSON CAPITAL PARTNERS, SUMMIT PARTNERS ICT LATER STAGE VC $61

FRESHBOOKS ONTARIO ACCOMPLICE, LLC, GEORGIAN PARTNERS INC., OAK INVESTMENT PARTNERS ICT EARLY STAGE VC $57

AURINIA PHARMACEUTICALS INC. BC ILJIN LIFE SCIENCE CO. LTD., LUMIRA CAPITAL INVESTMENT MANAGEMENT INC. LIFE SCIENCES PIPE $53*

BREATHER PRODUCTS INC. QUÉBEC MENLO VENTURES, RRE VENTURES, SLOW VENTURES, VALAR VENTURES MANAGEMENT LLC ICT LATER STAGE VC $53

WEALTHSIMPLE FINANCIAL INC. ONTARIO POWER FINANCIAL CORPORATION ICT EARLY STAGE VC $50

D-WAVE SYSTEMS INC. BC PUBLIC SECTOR PENSION INVESTMENT BOARD ICT VENTURE DEBT VC $41

INOCUCOR TECHNOLOGIES INC. QUÉBEC CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS, CLOSED LOOP CAPITAL, CYCLE CAPITAL MANAGEMENT (CCM), TPG CAPITAL LP AGRIBUSINESS EARLY STAGE VC $39

* RESTATED FROM Q1 TO REFLECT ONLY THE VC PARTICIPATION IN THE PIPENOTE: THERE WERE 2 H1 DEALS THAT WERE EXCLUDED FROM THIS LIST BECAUSE THEY WERE UNDISCLOSED


TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES // H1 2017 #1 toronto

$415M 74 DEALSTotal Deals $ Millions

1. Toronto

2. Montréal

3. Vancouver

4. Kitchener, Waterloo, Cambridge

5. Ottawa

6. Fredericton

7. Saskatoon

8. Halifax

9. Estrie

10. Laval

74

42

35

12

11

11

7

6

6

4

$415

$356

$323

$49

$64

$5

$6

$15

$17

$111

96

7

425

3

10 8


VC SECTOR BREAKDOWN // 2013-H1 2017

0

40

80

120

160

200

240

280

320

400

360

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2016201520142013 2016201520142013 2016201520142013 201520142013

$1,

941

H12017

$20

8

$14

H12017

$58

$18

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2016 H12017

234

274

328 331

158

113106

53

78

$48

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$72

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$73

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$34

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$39

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$1,

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5240 47 44

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$8

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$13

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47

$27

$42

ICT CleanTechLife Sciences AgriBusiness

$ Millions Invested

# Deals


0

30

60

90

120

150

180

210

240

300

270

$0

$160

$320

$480

$640

$800

$960

$1,120

$1,280

$1,440

$1,600

2016201520142013 2016201520142013 2016201520142013

$8

5

$13

5

$15

9

$21

4

H1 2017$

657

$1,

139

$8

24

$1,

06

8

$1,

210

$8

93

$1,

558

H1 2017

$9

55

$1,

411

H1 2017

108

138

180177

142

178

219

262

106112 117

135

94

66

$49

7

73

$9

1

VC STAGE BREAKDOWN // 2013-H1 2017

Seed Early Stage Later Stage

$ Millions Invested

# Deals


VC EXITS* // 2013-H1 2017

M&A IPO** RTO

* INCLUDES TRANSACTIONS WITH UNDISCLOSED VALUES;

** IPO VALUATION

$0

$160

$320

$480

$640

$800

$960

$1,120

$1,280

$1,440

$1,600

0

5

10

15

20

25

30

35

40

50

45

2016201520142013 2016201520142013 2016201520142013

$6

65

$50

3

$1,

392

$58

4

H1 2017

$6

56

$11

7

$19

$6

6

H1 2017

2629

42

31

46

4

0 11

20 0

$24

4

H1 2017

19

2

$34

6

$12

9

$53

7

$ Millions Invested

# Deals


TOP DISCLOSED VC EXITS // H1 2017

VC INVESTORS COMPANY SECTOR EXIT TRANSACTION ACQUIRED BY $ MIL.

INOVIA CAPITAL, TERALYS CAPITAL, CLARIDGE, INTERMEDIA PARTNERS, GROUPE DYNAMITE

LUXURY RETREATS INTERNATIONAL INC. ICT M&A AIRBNB $393

KENSINGTON CAPITAL, WHITECAP VENTURE PARTNERS, RADAR CAPITAL, WELLINGTON FINANCIAL REAL MATTERS INC. ICT IPO NA $157

FONDS DE SOLIDARITÉ FTQ, RHO CANADA VENTURES, SUMMIT PARTNERS, SKYPOINT CAPITAL CORPORATION ACCEDIAN NETWORKS INC. ICT M&A BRIDGE GROWTH

PARTNERS $133

BDC CAPITAL, LUMIRA CAPITAL, CTI CAPITAL ZYMEWORKS INC. LIFE SCIENCES IPO NA $87

KENSINGTON CAPITAL, NORTHLEAF CAPITAL, RECAPHEALTH VENTURES, DIFFERENCE CAPITAL, OMERS VENTURES, TELUS VENTURES, WELLINGTON FINANCIAL

VISION CRITICAL COMMUNICATIONS INC. ICT SECONDARY SALE GEORGIAN PARTNERS,

W CAPITAL $76


MOST ACTIVE VC FIRMS // FUNDS // H1 2017

MOST ACTIVE PRIVATE INDEPENDENT FIRMS # DEALS $ MIL.*

ESPRESSO CAPITAL PARTNERS 31 $19

500 STARTUPS 26 $11

REAL VENTURES 21 $312

INOVIA CAPITAL INC. 8 $110

CYCLE CAPITAL MANAGEMENT (CCM) 8 $98

RELAY VENTURES 7 $57

IGAN PARTNERS INC. 7 $22

MOST ACTIVE PENSION, RETAIL, CORPORATE & OTHER PUBLIC FUNDS # DEALS $ MIL.*

CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS 21 $81

FONDS DE SOLIDARITÉ FTQ 9 $216

OMERS VENTURES MANAGEMENT INC. 6 $151

SCALEUP VENTURES 3 $15

FONDACTION CSN 3 $1

MOST ACTIVE GOVERNMENT FUNDS # DEALS $ MIL.*

BDC CAPITAL 17 $30

NEW BRUNSWICK INNOVATION FOUNDATION (NBIF) 14 $7

MARS IAF 10 $21

BDC HEALTHCARE FUND 5 $188

BDC IT VENTURE FUND 5 $90

BDC INDUSTRIAL, CLEAN AND ENERGY TECHNOLOGY (ICE) VENTURE FUND 4 $61

Total Deals $ Millions*

Espresso Capital Partners

500 Startups

Real Ventures


BDC Capital

BDC Sector Funds**

New Brunswick Innovation Foundation (NBIF)

MaRS IAF


iNovia Capital Inc.

Cycle Capital Management (CCM)

$1931 $1126

$31221 $8121

$3017 $34014

$714 $2110

$2169 $1108

$988

* TOTAL DEAL VALUES - INCLUDES ALL PARTICIPATING INVESTORS

** BDC HEALTHCARE FUND - 5 DEALS TOTALING $188M*; BDC IT VENTURE FUND - 5 DEALS TOTALING $90M*; BDC ICE FUND - 4 DEALS TOTALING $61M*


PRIVATE EQUITY CANADIAN MARKET OVERVIEW

// H1 2017


PRIVATE EQUITY HIGHLIGHTS // H1 2017

A staggering $8.9B was invested across 170 PE deals in Q2, 79% higher than the $5.0B in the previous quarter and 164% more than in the same quarter last year ($3.4B)

Q2 2017 was a peak quarter for PE investment with the most dollars invested since Q3 2015, which saw $11.4B disbursed

This brings the total YTD PE investment to $13.9B over 277 deals, already surpassing the $13.8B in 2016

Two $1B+ mega deals accounted for 50% of dollars invested: the $4.8B privatization of Toronto-based DH Corporation and the $2.2B acquisition of Montreal-based Garda World Security Corp.

Activity in the $25-$100M small-market segment is on pace for a record year—31 YTD deals compared to 48 in 2016 and 56 in 2015

Similarly, in the $100-$500M mid-market segment, there have been 15 YTD deals, already exceeding the 14 in 2016 and on pace to reach the 31 deal-mark in 2015

One quarter of all PE deals in H1 2017 (42) were disbursed to Montreal-based companies, with 15% (27) going to Calgary-

based companies and Montérégie-based companies receiving a 13% share (23)

More than a fifth (23%) of PE deals this year have been closed in the industrial & manufacturing sector with ICT companies receiving the second largest share (17%). Both these sectors have been receiving a steadily increasing share of PE deal flow since 2013 when industrial & manufacturing captured only a 14% share and ICT a 10% share. Inversely, the oil and gas sector deal flow share has dropped from 19% in 2013 to a mere 9% in H1 2017

There have been 80 YTD exits in the first half of 2017, already exceeding the number of exits in each of the last four years

This includes the $2.2B exit from Montreal-based Garda World Securities, sold to Rhone Capital by Apax Partners

Two IPOs included the $445M dual listing of the iconic Canada Goose on TSX/NYSE and the $100M TSX-debut of STEP Energy Services Ltd.

Key Findings:


251911

5 2

$813m$3m

$584m

$2.6b

na

$2.9bOntario

BCAlberta

Saskatchewan

Québec

Nova Scotia

26

$723MManitoba

3Prince Edward

Island

na1

$7.6btotal

92 dealstotal #

PRIVATE EQUITY HEAT MAP // BUYOUT & ADD-ON DEALS ONLY // H1 2017


1563421

12 3

$1.4b$1.3b

$4.2b$6.3b

Ontario

BCAlberta

Saskatchewan

Québec

NANova Scotia

46$9m

$723MManitoba

4Prince Edward

Island1

NA

$13.9btotal277 dealstotal #

PRIVATE EQUITY HEAT MAP // ALL PE DEALS // H1 2017


QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY // 2013-H1 2017

TOTAL:269 DEALS

$11.3B

TOTAL:335 DEALS

$42.2B

TOTAL:425 DEALS

$22.9B

TOTAL:539 DEALS

$13.8B

TOTAL:277 DEALS

$13.9B

2013 2014 2015 2016 2017

Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

$0

$5,000

$10,000

$15,000

$20,000

$25,000

0

20

40

60

80

100

$30,000

120

140

160

180

200

$2,

530

$2,

933

$1,

846

$3,

96

3

$6

,277

$5,

250

$7,

80

4

$22

,852

$7,

053

$1,

86

9

$11

,36

7

$2,

60

0

$3,

221

$3,

372

57

81

48

83

64

81

88

102

91

104

117

113

123

147

131

138

$3,

038

Q3

$4,

142

Q4

$4,

976

Q1 Q2

107

170

$8

,915

$ Millions Invested

# Deals


TOP DISCLOSED CANADIAN PE DEALS // H1 2017

COMPANY PROVINCE FIRMS INVOLVED IN TRANSACTION SECTOR $ MIL.

DH CORPORATION (D+H) ONTARIO VISTA EQUITY PARTNERS BUSINESS PRODUCTS & SERVICES $4,800

GARDA WORLD SECURITY CORP. QUÉBEC APAX PARTNERS LLP, RHÔNE GROUP LLC OTHERS $2,200

ARCTIC GLACIER HOLDINGS INC. MANITOBA H.I.G. CAPITAL, LLC, THE CARLYLE GROUP CONSUMER & RETAIL $723

OLD PSG WIND-DOWN LTD. BC ANTARAS CAPITAL, L.P., FAIRFAX FINANCIAL HOLDINGS LIMITED CONSUMER & RETAIL $575

LUNDIN GOLD INC. BC BLACKSTONE GROUP L.P., ORION RESOURCE PARTNERS (USA) LP MINING & RESOURCES $572

XPLORNET COMMUNICATIONS INC. ONTARIO SEARCHLIGHT CAPITAL PARTNERS, LLC ICT $405

VESTA ENERGY CORP ALBERTA JOG CAPITAL CORP., RIVERSTONE HOLDINGS LLC OIL & GAS, POWER $305

HALOGEN SOFTWARE INC. ONTARIO SABA SOFTWARE, VECTOR CAPITAL CORP. ICT $293

CANADIAN SOLAR ONTARIO SOLAR PROJECT - SAULT STE. MARIE ONTARIO CANADIAN SOLAR INC., FENGATE CAPITAL MANAGEMENT LTD. CLEANTECH $262

NORTHERN BLIZZARD RESOURCES INC. ALBERTA NGP ENERGY CAPITAL MANAGEMENT, LLC, RIVERSTONE HOLDINGS LLC, WATEROUS ENERGY FUND, WEF OIL & GAS, POWER $244


0

40

80

120

160

200

240

280

320

400

360

$0

$1,600

$3,200

$4,800

$6,400

$8,000

$9,600

$11,200

$12,800

$14,400

$16,000 $

631

2016201520142013 2016201520142013 2016201520142013 201520142013

$8

50

$9

02

$1,

265

H12017

$4,

858

$6

,09

3

$6

,320

$3,

212

H12017

$2,

88

8

$3,

106 $

4,79

7 $6

,60

1

$97

5

2016

$1,

870

H12017

2016201520142013 2016201520142013

$3,

405

$10

,910

$4,

782

$4,

034

$2,

200

H12017

$3,

300

$4,

80

0

H12017

$14

,927

86

117

183

360

3155 56

48 23 27 3114

110 7 4 3 7 3 3 2 1 0 11

$1,

403

$2,

80

4

$2,

788

$2,

157

H12017

$1,

427

$70

6

157

31 153

PE ACTIVITY BY DEAL SIZE // H1 2017

TOTAL:903 DEALS

$4.4B

TOTAL:221 DEALS

$10.6B

TOTAL:110 DEALS

$23.4B

TOTAL:17 DEALS

$25.3B

TOTAL:25 DEALS

$17.4B

TOTAL:4 DEALS$23.0B

< $25M $25M-$100M $100M-$500M $1B-$2.5B$500M-$1B $2.5B+

$ Millions Invested

# Deals


TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES // H1 2017 #1 montréal

$2.9B 42 DEALS

4

2 106

31

5

7

Total Deals $ Millions

1. Montréal

2. Calgary

3. Montérégie

4. Toronto

5. Nord-du-Québec / Abitibi-Témis

6. Vancouver

7. Saguenay-Lac-St-Jean/Côte-Nord

8. Bas-Saint-Laurent

9. Québec

10. Saskatoon

42

27

23

22

18

12

10

8

8

7

$2,934

$1,399

$267

$5,104

$202

$1,263

$12

$33

$68

$7

98


62

46

29

28

26

24

15

13

9

9

9

5

2

# Deals $ Millions

Industrial & Manufacturing

ICT

Mining & Resources

Consumer & Retail

Agri-Forestry

Oil & Gas, Power

Business Products & Services

Life Sciences

Others

CleanTech

Automotive & Transportation

Financial

Real Estate

$382

$1,084

$959

$1,438

$965

$1,148

$5,061

$123

$2,230

$26

$433

$32

$9

industrial & manufacturing

PE SECTOR BREAKDOWN // H1 2017

most active sector

62 deals


PE EXITS* // 2013-H1 2017 $ Millions Invested

# Deals

2016201520142013 2016201520142013 2016201520142013

$2,

932

$8

,243

$2,

88

8

$30

6

H1 2017

$54

5

$6

57

$1,

173

$3,

842

$2,

155

NA

H1 2017

3

$10

,851

$11

,437

$11

,537

$6

,476

$4,

334

H1 2017

0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

0

10

20

30

40

50

60

70

80

5

61 2

51

4542

49

77

21

16

18

11 NA

IPO** M&A Secondary

* INCLUDES TRANSACTIONS WITH UNDISCLOSED VALUES;

** IPO VALUATION


TOP CANADIAN PE EXITS // H1 2017

SELLER COMPANY BUYER $ MIL.

APAX PARTNERS LLC GARDA WORLD SECURITY CORP. RHONE CAPITAL $2,200

H.I.G. CAPITAL, LLC ARCTIC GLACIER HOLDINGS INC. CARLYLE PARTNERS LP $723

BAIN CAPITAL CANADA GOOSE, INC. NA - IPO ON TSX & NYSE $445

EDGESTONE CAPITAL PARTNERS, BREGAL CAPITAL, PINE BROOK PARTNERS, SOROS STRATEGIC PARTNERS AURIGEN CAPITAL LIMITED PARTNERRE $375

RIVERSTONE HOLDINGS AND NGP ENERGY CAPITAL MANAGEMENT NORTHERN BLIZZARD RESOURCES INC. WATEROUS ENERGY FUND (WEF) $244

ARC FINANCIAL CORP. UGR BLAIR CREEK LTD. PAINTED PONY PETROLEUM LTD. $224

SWANDER PACE KICKING HORSE COFFEE LAVAZZA $172

ARC FINANCIAL CORP. STEP ENERGY SERVICES LTD. NA - IPO ON TSX $100

SASKWORKS VENTURE FUND SPUR RESOURCES TAMARACK VALLEY ENERGY LTD. $57

Apax Partners LLCbought by

RHONE CAPITAL $2,200m#1


MOST ACTIVE PE INVESTORS // H1 2017

* TOTAL DEAL VALUES – INCLUDES ALL PARTICIPATING INVESTORS

most active PE FIRM

66 DEALSFonds de solidarité FTQ

66

49

18

14

11

9

7

4

4

4

4

# Deals $ Millions*



Fondaction CSN

Investissement Québec

Caisse de dépôt et placement du Québec

PFM Capital Inc.

BDC Capital Inc.

Lex Capital Management Inc.

ARC Financial Corp.

Clairvest Group Inc

XPND Capital

$437 $937

$533

$305

$240

$294

$61

$90

$314

$294

$12

$12


CVCA METHODOLOGY // VENTURE CAPITAL

VC DEVELOPMENT STAGES

SEED STAGE COMPANY HAS A CONCEPT OR PRODUCT UNDER DEVELOPMENT, BUT IS PROBABLY NOT FULLY OPERATIONAL.

EARLY STAGE COMPANY HAS A PRODUCT OR SERVICE IN TESTING OR PILOT PRODUCTION. IN SOME CASES, THE PRODUCT MAY BE COMMERCIALLY AVAILABLE.

LATER STAGE PRODUCT OR SERVICE IN PRODUCTION AND COMMERCIALLY AVAILABLE. COMPANY IS GENERATING ON-GOING REVENUE, BUT NOT NECESSARILY, PROFITABLE.

VC SECTORS

ICT COMPUTER HARDWARE AND SOFTWARE AND SERVICES, INTERNET SOFTWARE OR SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE AND TELECOM TECHNOLOGIES AND SERVICES

LIFE SCIENCES BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES

CLEANTECH ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES

AGRIBUSINESS TRADITIONAL AND ADVANCED AGRICULTURAL TECHNOLOGIES AND SERVICES

Venture Capital Data:

Verified completed equity or quasi-equity venture capital deals only (non-equity or project-based government funding, pharmaceutical development deals, senior debt, venture capital-backed acquisitions, and angel financing are not included)


CVCA METHODOLOGY // PRIVATE EQUITY

Private Equity Data:

Dataset includes only completed private equity deals (announced but yet to be completed deals are not included)

PE DEAL TYPE

BUYOUT INVESTMENT FOR THE CONTROL OF A PORTFOLIO COMPANY, INCLUDING PLATFORM CREATION, SECONDARY BUYOUT

GROWTH SIGNIFICANT MINORITY INVESTMENT INTO A PORTFOLIO COMPANY, THROUGH NEW CAPITAL INFUSION AND RECAPITALIZATION

ADD-ON CORPORATE ACQUISITIONS BY MAJORITY CONTROLLED PE BACKED PORTFOLIO COMPANIES

DEBT DEBT INVESTMENT INTO PORTFOLIO COMPANIES

INFRASTRUCTURE INVESTMENTS INTO DEVELOPMENT AND MANAGEMENT OF INFRASTRUCTURE ASSETS BUT PE DOES NOT OWN THE UNDERLYING ASSETS

continued

PE SECTORS

AGRI-FORESTRY AGRICULTURE, FOODS AND FORESTRY

AUTOMOTIVE & TRANSPORTATION TRANSPORTATION, LOGISTICS AND RELATED SERVICES

BUSINESS PRODUCTS & SERVICES BUSINESS PRODUCTS AND SERVICES

CLEANTECH ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES


CVCA METHODOLOGY // PRIVATE EQUITY continued

PE SECTORS

CONSUMER & RETAIL CONSUMER PRODUCTS AND SERVICES, BRICK AND MORTAR RETAIL

FINANCIAL FINANCIAL SERVICES

ICT COMPUTER HARDWARE/SOFTWARE & SERVICES, INTERNET SOFTWARE & SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE & TELECOM AND SERVICES

INDUSTRIAL & MANUFACTURING EQUIPMENT AND MATERIAL MANUFACTURING

LIFE SCIENCES BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES

MINING & RESOURCES NON OIL AND GAS NATURAL RESOURCES

OIL & GAS, POWER OIL & GAS, POWER AND UTILITIES

REAL ESTATE PROPERTY DEVELOPMENT AND MANAGEMENT


CVCA ABOUT & CONTACT

AuthorsDarrell oversees all data related to Canadian private capital investments, exit and fundraising activities for the CVCA. Darrell has held senior positions at several global organizations including the Toronto Stock Exchange, Institutional Limited Partners Association, Thomson Reuters, Glaxosmithkline and the Interac Association. In between these, he also started his own successful management consulting company. He has worked in New York, London and Shanghai, but Toronto remains his favourite working city. He brings to the CVCA a passion for telling compelling stories with data. Darrell is currently on the board of a non-profit social housing in Peel, a member of Volunteer Toronto as well as an active volunteer with Woodgreen Community Services. He holds a BA in Philosophy/History from the University of Western Ontario and an MBA from the Rotman School of Management.

[email protected] | 416-487-0519 ext. 208

Carolyn oversees all of the CVCA’s communications and marketing efforts, which includes managing the Association’s brand, coordinating media outreach programs, and managing the development of all online content and social media engagements. Carolyn also brings with her a background in journalism, and is keen on positioning the CVCA as the industry thought leader for all things private capital through informative and engaging content. Carolyn has a BA in Popular Culture and Communications from Brock University, a diploma in Journalism from Niagara College Canada, and an interdisciplinary Master of Arts degree in Communication Studies from Brock University.


David executes research on venture capital and private equity deals within Canada. David is responsible for monitoring industry activity and maintaining the CVCA’s Infobase by entering data, including investments, exits, deals and fundraising activities on a daily basis. David holds a BA in Philosophy and Psy-chology from the University of Toronto.


DARRELL PINTOResearch Director

DAVID KORNACKIResearch Analyst

CAROLYN GOARDSenior Manager, Communications

About CVCAThe Canadian Venture Capital and Private Equity Association is the voice of Canada’s venture capital and private equity industry. We are focused on improving the private capital ecosystem by broadening indus-try awareness and providing market research, networking, and professional development opportunities.

We also advocate on behalf of the industry to ensure sound public policy that encourages a favourable investment environment. The CVCA works alongside its members, who represent the vast majority of pri-vate capital firms in Canada, to improve the industry and drive innovation and growth.

For more information, visit cvca.ca

@CVCACanada /CVCACanada

CVCA - Canadian Venture Capital and Private Equity Association

372 Bay St., Suite 1201 Toronto, ON M5H 2W9

To obtain estimates for additional custom InfoBase data reports please contact [email protected]

Documents

VC & PE CANADIAN MARKET OVERVIEW // H1 2017 · PDF file500 Startups Canada Mars Innovation Amorchem Venture Fund McRock Capital Arctern Ventures New Brunswick Innovation Foundation