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August 2010 
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Canadian VC Activity Hits 14-year Low, Reuters |
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Claire Spencer, November 2009 |
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(11 November 2009)
Activity in Canada’s venture capital market has hit a 14-year low in Q3 2009, with investment falling by 51 percent to $191m compared to the same period a year ago, according to data published by the Canadian Venture Capital and Private Equity Association (CVCA) and Thomson Reuters.
This suggests that investors are still unable or unwilling to invest – indeed, venture capitalists invested only $682m in the first nine months of the year, compared with $1.1bn in the same period in 2008. This means that total venture capital investment is likely to come in at below $1bn for the whole year – something which has not occurred since 1995.
The data also shows that the province of Ontario has been hardest hit, falling to $24m compared with $179m a year earlier.
Canadian venture capital activity is also down abroad, with funds investing only $38m in the third quarter, compared with $151m a year earlier, says the report.
Further, it is unclear as to when things will improve.
“There is increasing frustration in finding co-investment partners to fully capitalise companies to be successful and compete globally,” noted Greg Smith, president of the CVCA, speaking to Reuters.
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