Q-News

November 2009

Private Equity - October 2009

Posted in Private Equity

There were 14 financings reported this October.  13 of the announcements divulged the actual size of the investments – which added up $102.4 million in new capital.  The numbers were strong when compared to the ten deals and $50.1 million announced this September or the nine deals and $53.1 million announced in October 2008.  Nonetheless, the figures were still below the 15 deals and $123.0 million announced in October 2007, prior to the problems that beset the financial markets in 2008.  Most of the funding this month went to Ontario-based deals which accounted for eight of the transactions, including four of the five largest financings.  The rest of the announcements came from Quebec and British Columbia, which saw four and two transactions respectively.  Eleven of the raises involved high-tech companies with the other three financings going to a drug developer and two manufacturers.

 

Both of the transactions where Canadian players invested in the United States involved a Canadian-based debt provider injecting capital into a web-based platform.   The two US companies developing these platforms are headquartered in California and Massachusetts.

 

 

 

 

Financings of Canadian Companies:

 

Peraso Technologies, a Markham-based semiconductor firm, raised $10 million Series A round from Celtic House Venture Partners, iNovia Capital, and Venture Link Funds.

 

Fresco Microchip, a Toronto-based manufacturer of fabless semiconductors used in television sets and other consumer devices, raised $10 million in a round led by Toronto’s Celtic House Venture Partners.  The other investor participating in the round was Ventures West.  The company had previously raised $14.7 million in July of 2005 and $14 million in January of 2008 from the same two investors. 

 

The Solidarity Fund QFL made a $15 million in Smardt Chiller Group, a Montreal-based producer and marketer of air-cooled and water-cooled chillers for commercial and industrial establishments.

 

BTI Systems, an Ottawa telecommunications company, raised $1,563,600 through the issue of debentures.

 

NGRAIN Corporation, a Vancouver-based developer and marketer of 3D technology, received $3.7 million from private investors.  The company had previously raised $13.8 million from Genuity Capital Partners in April of 2007.

 

StatusNet, a Montreal-based company that has developed an open source microblogging tool, raised $875,000 from iNovia Capital and Montreal StartUp.

 

Toronto’s Chango, a search-focused advertising network (server), secured $750,000 from iNovia Capital and Extreme Venture Partners.

 

Heart Force Medical, a Vancouver-based developer of non-invasive devices that assess cardiac performance, raised $4.4 million from angel investors.

 

 

U.S. Activity in Canada:

 

California-based Bridgescale Partners made an $11 million Series A round investment in Toronto’s BlueCat Networks.  The company had developed IP Address Management (IPAM) platforms, as well as Domain Name System (DNS) and Dynamic Host Configuration Protocol (DHCP) solutions.

 

California’s FTV Capital, along with RBC Venture Partners and Edgestone Capital Partners, took part in a $35 million third round financing by Varicent Software, a Toronto-based provider of sales performance and compensation management software.  The company had previously already raised $15 million through its first two rounds, which were led by Edgestone and RBC Venture Partners respectively.

 

Two Chicago-based funds, BlueCross BlueShield Ventures Partners LP and Sandbox Industries, made a $5 million investment in Myca Health, an internet-based health care platform provider operating out of Quebec City.

 

Vimac Milestone Medical Fund of Massachusetts teamed up with iNovia Capital to co-lead an investment in Mimetogen Pharmaceuticals, a Montreal-based biotech company focused on developing drugs aimed at treating various eye problems.  The details of the deal were not disclosed.

 

Turnstone Capital Management LLC (CT) and strategic investor Nypro (MA) participated in a $4.7 million Series A raise by Morgan Solar, a Toronto-based company developing next-generation photovoltaic concentrators.  The other investor involved in this round was Iberdrola Group (Spain).

 

 

Canadian Investments South of the Border:

 

Toronto’s MMV Financial made a $4 million loan to Clickability, a San Francisco’s based firm that develops on-demand web-content management.

 

MMV Financial also provided $4 million in venture debt to Massachusetts’ Axeda Corporation, a provider of web-based asset management.  The new debt piece was part of a larger financing that included $5 million in Series B equity from a group of investors led by JMI Equity.

 

 

Fund News

 

BDC Venture Capital Investments, a Montreal-based venture capital firm that specializes in the funding of small and medium-sized Canadian firms in every stage of their development cycle, has received $50 million from the Federal Economic Development Agency for Southern Ontario.  Of the amount provided, $35 million will go to direct investments in early-stage firms while the other $15 million will be invested indirectly through Ontario-focused venture capital funds.

 

Rogers Communication has established a new venture arm and named it Rogers Ventures.  The fund will invest in early stage companies with emerging technologies.

 

 

IPO’S:

 

Dollarama, a Montreal-based discount retailer, raised $300 million through an initial public offering on the TSX.  The company is backed by Boston-based Bain Capital.

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