Q-News Private Equity

November 2010

Private Equity - October 2010

Posted in Private Equity

October was yet another sad reminder of the state of the Canadian VC industry.  Only three Canadian companies received funding and all of the capital came from government sponsored sources as opposed to private sector funds.  A Toronto company received capital from the federally-backed Business Development Bank of Canada while two companies, one in Nova Scotia and the other in Quebec, received capital from provincial funds focused exclusively on those respective provinces.  Out of all the Canadian companies reporting receiving capital this October, the Ontario-based business was the only one that can be classified as a technology investment.  The only investments made by private Canadian VC funds involved three California-based technology companies, all of which had already raised VC money through previous rounds of financing.

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October 2010

Private Equity - September 2010

Posted in Private Equity

There were nine transactions reported this September. Seven of the announcements disclosed the amount of capital raised, which totalled to $65.4 million. That is a slight improvement of over the eight deals totaling $44.9 million in August of this year and close to the 10 announcements and $50.1 million in new capital reported in September of 2009. Three of the companies raising money this September are in the tech space and all three are headquartered in Ontario. The fourth Ontario transaction involved a pharmaceutical company. There were also three announcements out of Quebec and one deal in Manitoba and BC respectively. These non-Ontario announcements included a biotech firm, a food manufacturer, a forest products business, a company specializing in licensed apparel, and a West Coast developer of LED systems. Four of the nine announced deals included participation from foreign investors, matching the number of deals in the US involving Canadian investors.

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September 2010

Private Equity - August 2010

Posted in Private Equity

After a strong July in which we saw 12 financings and a reported figure of $78 million in new capital invested in private Canadian companies, in August we only came across eight financings, which brought in a total of $44.9 million in new funds. This equates to more deals but less capital than the six transactions and $90.4 million in funding reported in August of 2009. Most of the activity this August took place in the provinces of Ontario and Quebec, with four and three financings respectively. The only other announcement came out of Nova Scotia. Five of the financed businesses can be classified as technology companies, three in Ontario and two in Quebec. The other financings reported last month involved a clean tech company, a biopharmaceutical developer, and a furniture manufacturer. Only two of the financings reported by private Canadian companies involved participation from a foreign investor. At the same time, we saw three deals in which a Canadian fund invested in a US company.

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August 2010

Private Equity - July 2010

Posted in Private Equity

There were 12 private Canadian company financings announced in July.  Ten of the press releases reported the actual amount of money being put into the companies – adding up to $438 million in new capital.  However, we feel that it would be inappropriate to compare these totals to the figures that we have reported in previous newsletters due to the fact that $360 million of the $438 million figure came from two large transactions that do not fall under the categories that we have traditionally focused on in our newsletter. 

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June 2010

Private Equity - June 2010

Posted in Private Equity

There were four private financings reported in June, bringing in $37.2 million in new capital. For the sake of comparison, in June 2009 we reported six deals and $7.9 million in new capital – the dollar figure that month was deceptively low due to the fact that two of the transactions reported did not give any details as to the amount of money actually raised. Looking at the last two years’ figures, it would be easy to say that June is merely a sluggish month in terms of financing. However, if we go back a little bit further - to June 2008 - we can see that there were 16 financings and $143.4 million in new capital reported that month. None of the financings reported this June involved an Ontario company while both Montreal and Vancouver reported two transactions each. The two Vancouver companies are both in the biotech space and accounted for $28.2 million of the $37.2 million in total funding – with a significant portion coming from foreign investors. For a second time in the last 12 months, there were more Canadian players investing in US-based companies than vice versa – we saw the same thing happen this past November. Four of the nine US investments made by Canadian parties were in technology companies while another two were in the biotech space.

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May 2010

Private Equity - May 2010

Posted in Private Equity

There were 14 financings reported in May with the total amount of capital raised by the 12 companies that disclosed the details of their transactions being $84.7 million.  That is a substantial improvement over the six deals and $20.6 reported in May 2009, or the five deals and $52.5 million reported this past April.  Most of the activity took place in Ontario and BC, with five announcements from each province Alberta and Quebec following up with two transactions each.  Seven of the companies being financed are in the technology sector while five cleantech companies and two life sciences startups accounted for the remaining investments.  There were only two transactions in which US investors participated; one of these was in the technology sector while the other involved a water company.  There were four foreign companies that received capital from Canadian investors – all of which are technology-focused. 

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May 2010

Private Equity - April 2010

Posted in Private Equity

There were only five private Canadian companies that reported raising money this April. Those five transactions added up to $52.5 million in new capital, with the largest deal coming in a $22.5 million. This month’s totals are almost on par with the $50.2 million that was raised through seven transactions in April of 2009. This April’s figures also represent the lowest totals this year – both in terms of the number of transactions and the amount of capital raised. Four of the deals involved technology companies, with the fifth being a biopharmaceutical company. Most of the activity took place in Toronto and Montreal, with two transactions each, while one announcement came out of Calgary. In what looks like a positive sign, three of the transactions involved investments from US funds. Other activity this month included

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April 2010

Private Equity - March 2010

Posted in Private Equity

There were 12 financings announced in March totaling $65.9 million in growth capital, although the inclusion of Adenyo’s $26.9 million raise skews the numbers somewhat since the company stated that the funds had been raised in July 2009.  The figures represent an increase from the eight transactions reported in March of 2009.  However, the total capital raised was still lower than the $77.7 million that was injected into the sector last March.  Ontario was the most active province with five new financings, while Quebec, British Columbia, and Alberta came in tied for second with two transactions per province.  The only other deal came out of Nova Scotia.  Technology companies accounted for

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March 2010

Private Equity - February 2010

Posted in Private Equity

There were nine reported financings in February. Of these, six companies disclosed the amount of capital that was raised, totaling $88.7 million. The totals are more or less on par with last month’s numbers and noticeably stronger than the figures from February of 2009 – at this time last year, we saw only six financings and $23.4 million in new capital. A large portion of the activity this month took place in Ontario and Quebec, in which there were four and two announcements respectively. The Ontario financings involved three technology companies and an online news portal. The remaining five deals involved two technology companies, a cleantech company, a private sample sale site, and an unidentified fund management company. Even though the small number of transactions makes it hard for us to come to any definitive conclusions, thus far it looks as though

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January 2010

Private Equity - December 2009 / January 2010

Posted in Private Equity

Following November’s weak numbers (which represented the ugliest month we’ve seen since we started tracking financing data in 2002), we were glad to see slightly better results for December.  In total, there were seven transactions reported (with six including details of the actual amount of capital raised), totaling $98.6 million.  Although the total amount of capital raised was considerably higher than in December 2008 (12 transactions reported for $35.8 million), $75 million or over just three quarters came from one transaction – DAVE Wireless.  Ontario was the only province with two transactions while other announcements came out of Quebec, Alberta, Nova Scotia, New Brunswick, and British Columbia. 

 

There were eight financings announced in January 2010 for a total of $75.7 million in new capital.  The totals were practically on par with the eight deals and $76.3 million in capital raised in January of 2009.     

 

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