Investment activity in Canada’s venture capital (VC) market in 2018 largely matched 2017's results in dollar terms, according to a report by the Canadian Venture Capital and Private Equity Association (CVCA). A total of $3.7 billion was invested in technology companies as of December 31, down a moderate 2 percent from 2017. The year-end total was strengthened by fourth-quarter activity, which saw nearly $1.3 billion invested in 165 financings, up 16 percent from the same time in 2017. Q4 2018 was one of two quarters last year when VC deployments rose above the $1 billion mark. IT sectors accounted for more than two-thirds of total VC invested in Canada in 2018, followed by life sciences sectors, which took a 17 percent share.
5 min read · 13 March 2019
Market Maker Agriculture, a Canadian agribusiness private equity firm, has acquired a majority interest in Arkansas Valley Seed (AVS), a Denver, Colorado-based seed supplier operating in the Western United States. No financial terms were disclosed for the deal, which was announced by SDR Ventures, the sell-side advisor to AVS. Market Maker President Greg Skotnicki said the acquisition will support the company's growth and allow the principals to plan their succession. AVS CEO Richard Avila and owner Orlin Reinbold will retain minority stakes. AVS is Ottawa-based Market Maker's third agribusiness investment to date.
3 min read · 12 March 2019
ZayZoon, a Calgary-based provider of employee financial payroll solutions, has secured $15 million in financing. The round was backed by a group of investors, including Prairie Merchant Corp and Bluesky Equities Ltd. Launched in 2014 by CEO Darcy Tuer and President Tate Hackert, ZayZoon partners with payroll businesses and employers to give employees a financial wellness platform, including access to early wages on-demand. The early wages service is currently available to more than 2 million employees across North America, the company reports. ZayZoon said it will use the round's proceeds to further develop its platform.
3 min read · 12 March 2019
Mastercard (NYSE: MA) has agreed to acquire Ethoca, a Toronto-based provider of technology solutions that address digital commerce fraud. Terms weren't released for the deal, which is expected to close in Q2 2019. Founded in 2005 by CEO Andre Edelbrock, Ethoca supports more than 5,400 merchants and 4,000 card issuers worldwide in identifying and resolving fraudulent transactions. Mastercard said the acquisition will add to its cyber strategy and help increase protection in the digital space. Ethoca is backed by Spectrum Equity, Pivot Investment Partners and Difference Capital Financial. Spectrum, a U.S. growth equity firm, led a US$45 million minority investment in the company in 2015.
3 min read · 12 March 2019
Cribcut, a Halifax-based mobile hair styling service, has raised $800,000 in the second tranche of a pre-seed financing, bringing the round to $1.06 million. The investors included Ramen Ventures, Innovacorp, Valhalla Angels, Georgian Angel Network, Broken Glass Angels and fellows and associates with Creative Destruction Lab. Founded in 2017, Cribcut provides a software-enabled marketplace that connects mobile hair stylists with their customers. It currently serves four Canadian provinces and 27 U.S. states. Led by CEO David Howe, Cribcut will use the funds raised to expand its presence across North America and grow its teams in Halifax and Toronto.
3 min read · 12 March 2019
Mofang Gongyu, a Shanghai, China-based institutional rental apartment operator, has raised US$150 million in a Series D financing. The round was led by Canadian pension fund manager Caisse de dépôt et placement du Québec. Founded in 2009, Mofang operates long-term rental housing for urban professionals in major Chinese cities, such as Beijing, Shanghai, Guangzhou and Shenzhen. It will use the funds raised to augment the company's market presence, extend operational capabilities, enhance its IT system and loyalty program, and pursue acquisitions. Mofang previously raised rounds backed by AVIC Trust and Warburg Pincus.
3 min read · 12 March 2019
Walter Craft Caesar, a Vancouver-based producer of a healthy Caesar cocktail mix brand, has raised a Series A financing. The round, the value of which was not disclosed, was led by District Ventures Capital, a Canadian consumer venture capital firm. Founded in 2013 by CEO Aaron Harowitz and Zack Silverman, Walter's all-natural products are sold in more than 2,500 retail locations and featured in restaurants and bars across Canada. Arlene Dickinson, founder and general partner of District Ventures, said her firm will work with Walter to take the company "to the next level."
3 min read · 12 March 2019
Azelis SA has acquired Chemroy Canada Holdings Inc, a Brampton, Ontario-based specialty chemicals, plastics and food ingredients distributor. No financial terms were disclosed. Founded in 1967, Chemroy offers warehousing across Canada and has additional offices in Laval, Québec and Vancouver. Azelis, a Belgian distributor of specialty chemicals and food ingredients, said the acquisition strengthens its presence in key segments of the Canadian market. Last year, Swedish private equity firm EQT and Canada's Public Sector Pension Investment Board (PSP Investments) acquired Azelis from Apax Partners.
2 min read · 11 March 2019
Maksteel has acquired LexWest Steel, a Los Angeles-based full-line distributor of flat-rolled steel products in the United States. No financial terms were disclosed for the deal, which will see LexWest rebranded as Maksteel USA. Based in Mississauga, Ontario, Maksteel is a steel service centre and processor. It was acquired last year by Union Partners, a U.S. metals and logistics private equity firm, from Welded Tube of Canada Group of Companies. Union Partners said the acquisition of LexWest expands Maksteel's geographic footprint and processing capabilities. It increases the company's North American facilities to nine.
2 min read · 11 March 2019
Ardenton Capital Corp has invested in Budget Trading Ltd and Budget Greeting Cards Ltd (BGC), together a U.K. designer and seller of greetings cards, gift wrap, stationery and celebratory products. Terms weren't released for the deal, which was led by Ardenton U.K. Director Michael Bradbury. Founded in 1984, BGC operates from Manchester, England and Dublin, Ireland and sells its products to small businesses. Ardenton, a Canadian private equity firm, said it will support the company's geographic expansion and development of an e-commerce platform. BGC is Ardenton's fourth U.K. deal. It follows last November's investment in Shaftec Automotive Components Ltd.
3 min read · 11 March 2019
