Canadian technology boom spuns venture capital investing

UCW News Team  |  February 25, 2016

Canada is witnessing a spike in venture capital investing. This type of investment hit a ten-year high in 2015 thanks to the boom in the technology industry.

The Canadian Venture Capital & Private Equity Association (CVCA) revealed that funding for entrepreneurs made up 536 deals, which attracted a total of $2.25 billion in 2015. This is the best result for start-ups in Canada since before the global financial meltdown in 2008. CVCA believes this trend will continue throughout 2016 as Canadian venture investors are looking for new deals after raising another $2 billion in 2015.

Venture capitalists are interested in traditionally strong sectors, such as life sciences, clean technology, agribusinesses, and information and communication technology. In fact, information and communication technology was the biggest beneficiary, with 325 deals amounting to $1.37 billion. The two biggest deals last year were Lightspeed POS Inc., a point-of-sale software firm in Montreal, which managed to attract $79 million, and Blockstream Corp., a cryptocurrency start-up that raised $73 million.

“The world needs to pay attention to Canada,” said CVCA President Mike Woollatt. “If you’re not paying attention, you’re missing out.”

With the fall in global oil prices, Canada is witnessing a growth in life sciences companies. The sector saw 110 deals worth $647 million in 2015. This is quite different from the 54 deals equalling $272 million that the sector noted two years ago. The biggest deal in the life sciences industry was the $74 billion deal for Montreal-based Clementia Pharmaceuticals Inc. It attracted venture capital firms Janus Capital and New Enterprise Associates.

The CVCA survey found that 57 per cent of venture capital investors are attracted by the slumping loonie. If Canadian technology start-ups earn in US dollars and incur expenses in Canadian dollars, they could earn a premium of 20 to 30 per cent.

This is good news for business students because it will herald more exciting opportunities where they can use their business knowledge to excel in their career. Start-ups typically offer exciting employment opportunities, and Canada now offers plenty of them.

This is the perfect time for students to opt for a business program at UCW. An MBA from UCW arms business graduates with the business expertise needed to succeed in their workplace. The courses cover business ethics, system analysis, leadership, management, and critical thinking. The degree provides students a perfect blend of practical knowledge, real-world cases studies, and theoretical knowledge through classroom hours so that they are equipped to become effective leaders.

Share on Facebook Share on LinkedIn +1