Latest news with #CVCA
CTV News
6 days ago
- Business
- CTV News
Canadian venture capital deals tumble as investors wait out uncertainty: expert
Canadian venture capitalists have been less active when it comes to dealmaking this year, according to one expert who says economic uncertainty has kept many investors from expanding their portfolios. 'It's uncertain, and it's no surprise that Canadian investors are experiencing it,' David Kornacki, director of data and product at the Canadian Venture Capital & Private Equity Association (CVCA), told BNN Bloomberg in an interview on Thursday. 'There's uncertainty just in overall macroeconomic trends but also, we're seeing a pullback; Canadian venture capital is a risky investment.' Kornacki said that in 2025, investors have been less willing to take on that risk, adding that there's been a noticeable drop in funding for startups in the early stages of capital raising. 'In the pre-seed, seed and Series A stages, there is a pullback, which does drop down investment counts across the board,' he said. Much like during the COVID-19 pandemic period, investors this year have been more likely to shore up their existing portfolios rather than attempting to expand them given the uncertainty that's spread to virtually all markets and sectors due to ongoing global trade conflicts, said Kornacki. 'That's what we're seeing as well, we're seeing investors make sure that their current portfolio is reducing burn, that they're remaining capital efficient and that they have capital on hand to make sure that their portfolio can ride out this next phase of uncertainty,' he said. 'So definitely we're seeing a reduced number of deals and dollars invested, specifically on the large scale. Mega deals were down; we only had about eight mega deals, what we define as $50 million-plus. We're definitely seeing investors being more cautious.' Despite the across-the-board slowdown in venture capital deals this year, life sciences is one sector that seems to be bucking the trend, Kornacki noted. 'We saw this, again, during the times of COVID-19, which made more sense given that was a health crisis, and we saw more investment into healthcare, but we're seeing that again this year,' he said. 'It seems health and life sciences is a resilient sector that doesn't ebb and flow as much as other sectors, specifically when it comes to impact on the supply chain and macroeconomic trends.' Another positive development within Canada's venture capital space is the broadening of deals across regions outside of the country's three largest provinces, Kornacki explained. 'Back when I first joined the CVCA about eight years ago, we saw investment across basically three provinces,' he said. 'Now we're seeing investment across the board, across the country in the Prairies as well and in the East Coast and the Maritimes. It's exciting to see that investment is more cross-Canada versus the Ontario, Quebec and B.C. markets.'
Yahoo
13-08-2025
- Business
- Yahoo
Canadian venture capital deals tumble to pandemic-era lows
Canadian venture capital deals have tumbled to levels not seen since the COVID-19 pandemic, according to a new report by the Canadian Venture Capital and Private Equity Association (CVCA). Investors poured $2.9 billion into 254 Canadian VC deals in the first six months of 2025, marking a 26 per cent decline in dollars invested and a 22 per cent fall in deal count compared to the same period last year, the report released on Wednesday said. It was the lowest first-half total since 2020. A sharp pullback in early-stage funding was a key factor in the decline. The information and communications technology (ICT) sector, which includes e-commerce, telecommunications, software and hardware startups, attracted the most VC investment in the first half of 2025, raising $1.39 billion across 115 deals. The life sciences industry was in second place, raising $894 million across 58 deals, followed by cleantech, which received $191 million from 54 deals in the same period. VC deployment slowed down across all sectors in the first half compared to the same period last year, with funding for the ICT and cleantech sectors reaching only 30 per cent and 17 per cent, respectively, of their total levels a year ago. Investors in the United States have long been key players in Canada's venture capital and startup ecosystem. In the first six months of 2025, however, their participation in Canadian VC deals dropped by three per cent compared to last year and by eight per cent compared to the all-time high reached in 2021. 'Global trade tensions and similar market slowdowns in the U.S.' fueled the slump, said David Kornacki, director of data and product at the CVCA. Nevertheless, U.S. investors continued to dominate Canada's largest deals, participating in half of all mega-deals — those valued at $50 million and above. The most active foreign VCs in Canada in 2025 so far have been American, including the likes of Y Combinator LLC, Tidemark Management Co. LP and TCMI Inc., better known as Technology Crossover Ventures. Investor exit activity remained subdued in the first half of 2025. There were zero initial public offerings, marking two years since the last IPO of a VC-backed portfolio company in Canada. 'Ongoing market uncertainty and valuation challenges continue to delay public market entries,' said the CVCA report. Mergers and acquisitions accounted for 74 per cent of exit activity, or $171 million across 14 exits, in the first half of 2025, but that's way below the numbers in the past two years. M&A transactions hit $4.38 billion across 35 deals in 2024 and $8.03 billion across 36 deals in 2023. Low interest rates and valuation challenges stoked a growing pivot toward venture debt — loans provided by bank and non-bank lenders tailored for early-stage startups — as a 'strong alternative source of capital,' the CVCA said. In the first half, $628 million was invested across 36 venture debt deals, a 288 per cent surge from the same period a year ago. On a quarterly basis, the total amount invested declined to $267 million in the second quarter from $361 million in the first quarter. Canadian private equity investments skyrocketed in the first half, with $30.8 billion invested across 322 deals, surpassing 2024's full-year total of $27.5 billion and marking a 258 per cent jump in total dollars invested compared to the first half last year. U.S. investors own Canada's future and that needs to change Small deals dominate Canadian private equity this year Mid-market activity continued to dominate, with 86 per cent of deals in the first half of the year valued at less than $25 million. Five mega-deals, including three that were valued above $2.5 billion, drove overall investment to record highs. • Email: ylau@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Calgary Herald
13-08-2025
- Business
- Calgary Herald
Canadian venture capital deals tumble to pandemic-era lows
Article content Canadian venture capital deals have tumbled to levels not seen since the COVID-19 pandemic, according to a new report by the Canadian Venture Capital and Private Equity Association (CVCA). Article content Investors poured $2.9 billion into 254 Canadian VC deals in the first six months of 2025, marking a 26 per cent decline in dollars invested and a 22 per cent fall in deal count compared to the same period last year, the report released on Wednesday said. It was the lowest first-half total since 2020. A sharp pullback in early-stage funding was a key factor in the decline. Article content Article content Article content The information and communications technology (ICT) sector, which includes e-commerce, telecommunications, software and hardware startups, attracted the most VC investment in the first half of 2025, raising $1.39 billion across 115 deals. Article content Article content VC deployment slowed down across all sectors in the first half compared to the same period last year, with funding for the ICT and cleantech sectors reaching only 30 per cent and 17 per cent, respectively, of their total levels a year ago. Article content Investors in the United States have long been key players in Canada's venture capital and startup ecosystem. In the first six months of 2025, however, their participation in Canadian VC deals dropped by three per cent compared to last year and by eight per cent compared to the all-time high reached in 2021. Article content Article content ' Global trade tensions and similar market slowdowns in the U.S.' fueled the slump, said David Kornacki, director of data and product at the CVCA. Article content Article content Nevertheless, U.S. investors continued to dominate Canada's largest deals, participating in half of all mega-deals — those valued at $50 million and above. The most active foreign VCs in Canada in 2025 so far have been American, including the likes of Y Combinator LLC, Tidemark Management Co. LP and TCMI Inc., better known as Technology Crossover Ventures. Article content Investor exit activity remained subdued in the first half of 2025. There were zero initial public offerings, marking two years since the last IPO of a VC-backed portfolio company in Canada.
Yahoo
15-06-2025
- Sport
- Yahoo
University vs Wapakoneta baseball: Preview capsule for Division III state semifinal
University vs. Wapakoneta What: Division III state semifinal When: 1 p.m., June 13 Where: Canal Park, 300 S Main St., Akron Records: University 26-6, Wapakoneta 22-5 University's path: Defeated Glenville, 20-2, def. Harvey, 10-0, def. Twinsburg, 4-0, def. Padua, 8-5, def. CVCA, 2-0 Advertisement Wapakoneta's path: Defeated Celina, 1-0, def. Norwalk, 4-0, def. Columbiana, 3-0, def. Akron SVSM, 8-4, def. Toledo St. Francis de Sales, 6-5 On Deck: The winner will play the winner of Licking Valley and Badin for the D-III state championship at 1 p.m., June 14 at Canal Park. Related Articles * \u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009University baseball finishes as Division III state runner-up\u0009\u0009\u0009\u0009\u0009\u0009\u0009 * \u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009PHOTOS: University vs. Licking Valley baseball, June 14, 2025\u0009\u0009\u0009\u0009\u0009\u0009\u0009 Advertisement * \u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009Lake Catholic vs. Unioto baseball: Cougars' four-run sixth propels them to 5-3 Division IV state semifinal win\u0009\u0009\u0009\u0009\u0009\u0009\u0009 * \u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009PHOTOS: Lake Catholic-Unioto baseball, June 13, 2025\u0009\u0009\u0009\u0009\u0009\u0009\u0009 * \u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009\u0009University vs. Wapakoneta baseball: Aaron Moss, timely hitting send US to Division III state title game, 4-0\u0009\u0009\u0009\u0009\u0009\u0009\u0009 For the Record: Outside of a five-run inning against Padua, University's pitching has been lights-out. Three shutouts by Aaron Moss, Slater Scholaf and Crew Bellan lead the way. But the Preppers aren't a one-trick team, as displayed in the regional round. University has power from players including Tucker Greer and Deacon Nelson to take anything left over the middle of the plate deep. Or the Preppers can play small ball with Jack Nelson and James Bucci bringing in runs on line drives against CVCA. But it all hinges on the pitching and experience of the team's seniors, like Moss and Greer, who have played varsity since their freshman campaigns. Two more wins and the seniors bring home their first baseball state championship in school history. … Wapakoneta had a close call in its regional semifinal, holding off a three-run seventh inning by Toledo St. Francis de Sales. It has three strong pitchers in Grant Jolley, Drew Bailey and Daron Houser. Wapakoneta also brings strong bats with Bailey having a triple and two runs against Akron SVSM, plus four more driving in runs against the Irish. Against St. Francis de Sales, Jarrett Mullen hit a home run in the fourth that put the game out of reach. Wapakoneta has state runner-up finishes in 2012 and 2018 and is also seeking its first state championship. Hercik's pick: University
Globe and Mail
31-05-2025
- Business
- Globe and Mail
FCC to invest $2-billion in agri-food startups
Ottawa has loaned money to Canadian farmers for nearly a century. Now Crown agency Farm Credit Canada is looking to use some of its vast resources to back innovative startups that serve the agri-food business. FCC said Friday it would invest $2-billion through to 2030 to advance agtech innovation in the country's agri-food industry. It will invest through an array of vehicles that includes funds, direct investments and other investment structures, providing equity, convertible equity and mezzanine loans to companies ranging from pre-seed startups to later-stage enterprises that serve the sector. 'There is an opportunity to increase the adoption and access to innovation of the primary producers,' said FCC executive vice-president Darren Baccus, who will oversee the program. 'There is a need in this industry for meaningful capital. Canada is so uniquely positioned to be able to do this.' Despite Canada's status as a global breadbasket, the sector attracts little risk capital. Total venture capital invested in Canadian agribusinesses totalled just $881-million over the past four years combined, according to the Canadian Venture Capital and Private Equity Association (CVCA). That is less than 4 per cent of what Canada's information and communication technology sector raised over the same period. 'It's always surprising, the lack of money that goes into agribusiness venture capital given the predominance we have in food production,' said CVCA president Kim Furlong. 'The market need is there, food security is a real thing and the technologies are there.' Canada's crop of agtech companies is modest. One of the biggest names, Farmer's Edge Inc., went public in 2021 and its stock crashed after it reported mounting losses. Majority owner Fairfax Financial Holdings Ltd. took the company private at 35 cents a share in 2024. This tech is helping Canadian farmers grow smarter, not harder Agtech startups are challenged by high capital expenditures and long timelines, said Marcus Mitchell, chief executive officer of Shire Capital Management. 'There's definitely a funding gap and I see this as an effort to de-risk deals in the sector so more conventional capital allocators have a reason to engage,' he said. Sean O'Connor, CEO of 4AG Robotics Inc., a B.C. company that is developing mushroom-picking robots, added that varying crops, soil and weather conditions in different markets make it 'challenging to find agtech that has the ability to scale in a similar way everywhere in the world.' FCC was established in 1959 to replace the Canadian Farm Loan Board as a lender to farmers. It has dabbled in venture capital on the side for years, but VC accounted for just $246-million of its $53.5-billion in total assets in its fiscal year ended March 31, 2024. Mr. Baccus said FCC's increased shift into VC came after Justine Hendricks joined as CEO in 2023 and began speaking with industry stakeholders. 'We started to hear from industry: You can do more.' he said. 'They said, 'We value what you bring to industry, that your core business is primary production, but there are opportunities for you to provide more capital solutions to this industry.'' How vertical farming can help Canada create a self-reliant food chain in an era of tariffs and climate change FCC responded by establishing a new arm called FCC Capital in 2024, and it has made nine direct investment deals that total $170-million, investing in three new funds and establishing a new business accelerator. Mr. Baccus said FCC will not lead deals but look to 'crowd in' private sector investors into domestic agtech companies. 'I think government investment for the time being is essential as we create these success stories and technologies that will help more folks say yes,' said Dana McCauley, CEO of the Canadian Food Innovation Network. FCC joins Crown agencies Business Development Bank of Canada and Export Development Canada in expanding support recently for domestic startups. Prime Minister Mark Carney has pledged to commit $1-billion in new money to a venture capital funding program begun by Stephen Harper's Conservative government.
