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The real impact of venture capital on Canadian companies

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  • 1. THE REAL IMPACT OF VENTURE CAPITAL ON CANADIAN COMPANIES $2.0B IN 2013 31% MORE THAN THE YEAR BEFORE AND AT ITS HIGHEST LEVEL SINCE 2007 IN VENTURE CAPITAL (VC) WAS INVESTED IN CANADIAN COMPANIES WHERE THE DEALS FLOW Over half of VC was invested in Information and Communication Technologies The least of VC dollars were invested in Life Sciences 13% 54% 8% Alberta 24% Investments in Alternative and Clean Technologies more than tripled (from $90 M in 2012 to $324 M) 2% 1% British Columbia Atlantic ManitobaSaskatchewan 35% 30% Ontario Quebec VC BACKED COMPANIES OUTPERFORM, OUTCOMPETE AND OUTLAST VS VC BACKED FIRMS › STRONGER REVENUE ‹ NON BACKED FIRMS 137% NON BACKED FIRMS VC BACKED FIRMS ALMOST 2.5X 56% THE SALES GROWTH YEAR 1 YEAR 2 YEAR 3 GREATER EMPLOYEE GROWTH NON BACKED FIRMS VC BACKED FIRMS YEAR 4 YEAR 5 51% 42% 34% 7% 4% -4% YEAR 1 YEAR 3 YEAR 5 GREATER HIGH VALUE EMPLOYMENT NON BACKED FIRMS VC BACKED FIRMS AVERAGE WAGES GROWTH IN AVERAGE WAGES $66,000 $43,000 29% 19% MORE INVESTMENT IN R&D $2M NON BACKED FIRMS VC BACKED FIRMS MORE THAN 3X SPENT ON R&D $629,000 HIGHER LONG TERM SURVIVAL RATES NON BACKED FIRMS VC BACKED FIRMS 76% 98% 91% 94% 80% 61% YEAR 1 YEAR 3 YEAR 5 INCREASED ACCESS TO CAPITAL FOREIGN INVESTMENT CAPITAL MORE THAN DOUBLED OVER LAST YEAR (FROM $384M TO $828M) ONTARIO, QUEBEC AND BC RANKED AMONG THE TOP 10 REGIONS FOR VC IN NORTH AMERICA THE AVERAGE FINANCING ROUND INCREASED BY NEARLY 50% SINCE 2009 (FROM $3.3M TO $4.9M) HIGH–GROWTH AND SUCCESSFUL EXITS AHEAD HOOTSUITE RAISED $171M — THE LARGEST DEAL RECORDED IN THE CANADIAN MARKET CANADIAN-BACKED EXITS WERE UP 19% OVER LAST YEAR 2013 DOLLARS INVESTED IN BRITISH COLUMBIA MORE THAN DOUBLED (FROM $198M TO $478M) THE VENTURE CAPITAL ACTION PLAN IS EXPECTED TO ATTRACT UP TO $1B IN NEW PRIVATE SECTOR INVESTMENTS In Canada, a vibrant VC ecosystem is strongly correlated with the success of early-stage companies. Our best‑in‑class companies profoundly impact the local economy and are being recognized more and more by global investors for their innovation and high-growth potential. www.cvca.ca @CVCACanada Driving Innovation and Growth www.bdc.ca/vc @BDC_VC