VC Conditions Challenging
Canadian firms hoping for investment from venture capital (VC) are likely to find conditions more challenging as the year heads to a close, says CPE Analytics. Its data for the third quarter of 2022 shows a tighter pot of funds and VC firms that are financing less, continuing the trend seen in the first half of 2022. Canadian VC disbursements totaled $950 million in the quarter, down 21 per cent from the second quarter and a 71 per cent decrease from the first. Comparing the first nine months of the year, 2022’s $5.86 billion total is 46 per cent below that of 2021 ($10.9 billion). Investors from south of the border accounted for 53 per cent of total disbursements, adding $3.1 billion in the third quarter. Canadians accounted for 30 per cent of the total disbursements in the quarter, similar to the previous quarter, with $1.8 billion invested.