Ritter Group Excited As Canada's Investment Grows 10% in 2010
While most dollars continued to flow to IT sectors, which accounted for 42% of the total invested last year, it was deal activity in clean technology and life sciences that spurred overall market growth.
- (1888PressRelease) May 12, 2011 - Venture capital (VC) market activity in Canada edged upwards in 2010, with deals and dollars invested rising compared to 2009. The data reveal that Canadian VC deal-making increased moderately in 2010, with $1.1 billion invested in total, up 10% from the year before. The number of companies financed, totaling 354 last year, also grew a moderate 5% over this period.
Growth in Canadian market activity last year was located chiefly in Ontario, British Columbia and Alberta. In particular, Ontario bounced back from a disappointing 2009, with $424 million invested in 2010, up 43%. Québec-based VC activity, which saw growth the year before, instead fell 9% in 2010.
While most dollars continued to flow to IT sectors, which accounted for 42% of the total invested last year, it was deal activity in clean technology and life sciences that spurred overall market growth. Life sciences companies captured 38% more VC than in 2009, and clean-tech companies racked up their largest share on record: 17% of all disbursements.
While high-growth, entrepreneurial firms in Canada raised a modestly greater amount of risk capital in 2010 than in 2009, demand continues to outstrip supply. We can only truly move forward when innovative companies are being financed at the same levels as global competitors.
The data show that both domestic and foreign VC funds were more active in Canada in 2010. Canadian funds invested $811 million, up 11% from 2009, while foreign investors brought $331 million to deals, up 6%. However, VC deal sizes averaged only $3.2 million last year, which is almost unchanged from 2009.
Like deal-making, exits from VC fund portfolio investments underwent a rebound in 2010. Acquisitions of Canadian-based companies and other exits totaled 31 last year, up 24% from the year before. However, there was only one initial public offering of a VC-backed company in 2010, which is unchanged from both 2009 and 2008.
Canadian VC fundraising was especially weak last year. New commitments to VC funds totaled $819 million, down 24% from 2009, and the lowest per-annum level reached in the Canadian market in 16 years. A key factor in the year-over-year drop was a relative shortage of major new VC partnership closings.
About Ritter Group:
Ritter Group is a premier provider of seed and early stage venture capital for innovative companies. Ritter Group works tirelessly to be the best across a global market and global technology areas including Biotechnology, Clean-tech, Information technology, Telecommunications, Diagnostic technology and Medical technology. Ritter Group provides unparalleled help and trusted advice across key aspects of company building including strategy, recruiting and business development.
Press Contact:
Barbara Gould, Ritter Group Media Coordinator, press ( @ ) rittergroup dot com
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