UPFRONT
ALTERNATIVE INVESTMENT UPDATE
Canadian VC nearing a five-year streak Money continued to flow into Ontario and the tech sector in the first half of the year
28% improvement over the previous quarter. The top 10 disclosed deals in the first half of the year accounted for $624 million, or 38% of the total. Through June, the industry saw seven mega deals (those exceeding $50 million each), which were led by a $90 million financing round for Torontobased food-ordering app Ritual. Among the provinces, Ontario was the runaway leader in deals and dollars, raising $907 million over 116 deals in the first half of the year. Quebec was second with 94 deals
“Canada is enjoying the best venture capital investment climate in well over a decade”
The second quarter of 2018 brought 166 deals and nearly $1 billion in investment into Canada’s venture capital space, according to the Canadian Venture Capital Association [CVCA]. That pushed VC investment for the first half of the year to $1.7 billion, which was 7% higher than 2017’s half-year total. “Innovation in Canada is enjoying the best venture capital investment climate in well over a decade,” said CVCA CEO Mike
NEWS BRIEFS
Woollatt. “We’re consistently observing an increase in size and volume of deals at all stages, plus a welcome resurgence in exits. We’re bracing for 2018 to be another record year.” In its VC & PE Canadian Market Overview for the first half of 2018, the CVCA noted that Canadian VC has been on an upward trajectory since 2014. Average deal size in the second quarter of this year was $6 million, a
Coinsquare eyes European expansion
Coinsquare, the premier Canadian trading platform for Bitcoin, Ethereum and other cryptocurrencies, has announced plans to expand into the European market. The firm’s first international push under the Coinsquare brand, which will provide customers across Europe with access to its entire suite of coins, is set for the fourth quarter of this year. “Entering a massive market like the EU is an exciting step closer to Coinsquare’s vision of becoming a global 21st-century financial institution,” said CEO Cole Diamond.
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worth $319 million, followed by BC (42 deals/$276 million). In terms of the most popular sectors, information and communications technology retained its top status with just over $1 billion amassed in 189 deals – nearly two-thirds of all VC dollars invested in the period. Life science companies and cleantech were a distant second and third. The first half of the year also saw a marked increase toward later-stage companies, which received 41% of investments, or $901 million. Early-stage companies, on the other hand, got just 37% of the pie. And, the CVCA reported, “the market for exits continued the rebound from last year with 16 exits.”
EdgeHill Partners launches liquid-alt mutual funds
EdgeHill Partners has launched the first family of prospectusoffered ‘liquid alt’ alternative mutual funds in Canada under the EHP Funds brand. The six new long/short funds offer alternatives to traditional long-only mutual funds and provide exposure to different geographies, asset classes and investment objectives. “Our funds are designed to limit volatility and downside versus traditional funds,” said EHP Funds’ Jason Mann. “These funds can help diversify portfolios and improve investment outcomes, regardless of market direction.”
www.wealthprofessional.ca
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21/09/2018 8:13:43 AM