Canadian venture capital surged in first half of 2015

TORONTO—Venture capital was up significantly in terms of both deal activity and value through the first half of 2015, according to a July 29 report Canadian Venture Capital & Private Equity Association (CVCA).

The Toronto-based organization says the first six months of 2015 saw 244 venture capital deals, an increase of 21 per cent over the same period last year. The deals were worth about $939 million, a 23 per cent rise over that period.

Meanwhile, private equity saw a similar number of completed deals year-over-year—145 deals in 2015 versus 147 deals in 2014—however the amounts invested dropped significantly with deal value down from $11.4 billion in the first half of 2014 to $7.8 billion so far in 2015.

The surge in venture capital activity came in the second quarter of 2015, the amount invested was up 53 per cent from the first quarter.

Life Sciences played a significant role, attracting $211 million. That was more than double the amount invested in the first quarter at $92 million.

Regionally, there were also massive spikes of VC activity in Q2. In British Columbia, deal activity grew by 123 percent quarter over quarter, and disbursement levels soared by almost 150 per cent. In Quebec, disbursements nearly tripled due to a surge in life sciences investments with two big deals driving growth (Clementia Pharmaceuticals, $73.9 million and Milestone Pharma, $20.9 million).