Venture Investments Increasing


    Canadian venture capital and private equity funds (buyout) disclosed $2.56 billion of new investments and $1.48 billion of new capital for the first quarter of 2013, says data from the CVCA ‒ Canadian Venture Capital and Private Equity Association and Thomson Reuters. Venture capital highlights include an increase in both the number of investments and proportion of ‘new’ investments and a significant increase in total capital invested. Private equity (buyout) highlights show resource extraction captured one-third of deals and the majority of capital deployed, although there was a noticeable decline in international activity by Canadian funds. Venture capital investment activity in Canada increased 55 per cent versus the same period in 2012 to $460 million in the first quarter of 2013. The number of deals also grew 17 per cent with 137 Canadian companies receiving new investment capital. With total disclosed investments $2.1 billion for the first quarter, the level of investment activity for private equity and buyouts was in line with amounts reported in the same quarter last year. The key change for the period was a 47 per cent decline in the number of deals, which was reflective of a handful of major transactions during the period.