Private Equity
Even as venture investment in Canada is increasing, many of the country’s most promising tech companies face a funding gap at key points in their growth cycles, a new study found. A report released today by Yaletown Partners said late-stage tech companies often lack the capital to leverage initial commercial success and pursue emerging-growth strategies. This gap has reduced many innovative companies to bootstrapping their growth. The result is often slower expansion and delayed exits, typically at lower values, relative to competitors.
3 min read · 06 July 2016
EnerTech Capital has entered into a strategic partnership with the National Optics Institute (INO) in Québec City. INO is a developer of industrial optics and photonics solutions. The partnership between the organization and EnerTech will allow them to share knowledge and explore a range of new commercialization strategies for technologies in the energy space. EnerTech, an investor in energy and power sectors, has offices in Calgary, Toronto, Montréal and in the United States.
4 min read · 06 July 2016
The Co-operators Group Ltd has made a "significant" investment in the second sustainable food fund of Canadian venture capital firm InvestEco Capital Corp. The size of the commitment and the amount targeted by InvestEco Sustainable Food Fund II were not disclosed. The fund, which is being marketed to accredited investors, will focus on expanding companies in North America that promote health and sustainability in the food and agricultural industry. The Co-operators is a Canadian co-operative insurance firm with more than $40 billion in assets under management. Earlier this year, InvestEco partnered in the financing of Mama Earth Organics.
3 min read · 05 July 2016
Canadian software company Espial (TSX: ESP) has agreed to buy the cloud-hosted video-as-a-service platform of ARRIS International plc (NASDAQ: ARRS), a U.S. entertainment and communications technology company. No financial terms were released for the deal, which is expected to close in the third quarter. Ottawa-based Espial said the acquisition will add to its capabilities and help leverage the company's IP video services. Founded in 1997, Espial went public in June 2007. It remains a portfolio investment of Canadian venture capital firm Relay Ventures.
6 min read · 04 July 2016
Canada’s top 10 second-quarter venture-capital financings attracted more than $446 million from investors, up 60 percent from the $279 million that went into the top 10 deals a year ago. That estimate is based on PE Hub Canada's list of the largest rounds announced between April and June. It is headed by DalCor Pharma and Real Matters, which accounted for the two largest Canadian tech financings since 2013.
3 min read · 04 July 2016
The value of announced mergers and acquisitions (M&A) worldwide dropped by a third in the second quarter of 2016, as a wave of transactions were abandoned in the wake of concerns over regulatory and tax risks or national security, Reuters reported. While 2015 was a record year for M&A, 2016 is shaping up to be a record year for 'broken' deals, as the United States flexes its antitrust muscle and seeks to crack down on deals that aid tax avoidance or risk harming national security. Coupled with market volatility triggered by Britain's vote to leave the European Union last week, this has dented some of the confidence required by corporate boards to approve deals.
4 min read · 30 June 2016
Kitchener, Ontario-based Mappedin, a provider of indoor search software, has raised an extension to its seed-stage financing, bringing its total funding to $3.5 million. Green Century Investments led the round, with participation by Amolino and several local angel investors. Founded in 2011, Mappedin reported revenue growth of more than 500 percent last year and is forecasting a tripling of revenue by the end of 2016. The startup said it used the funds raised to hire sales and marketing personnel, and is now positioned to respond to increasing demand for its technology from malls, REITs, and retailers.
3 min read · 30 June 2016
The government of Nova Scotia has made a $25 million commitment to a new venture capital fund. The fund, which will be private sector-led, aims to increase the amount of financing available to high-growth Nova Scotia startups. Innovacorp will lead a process to find an experienced business leader or firm to administer the fund and attract additional private investment. This process will be assisted by Rob Barbara, a general partner at Build Ventures; Charles Baxter, a vice-president at Innovacorp; Dominique Belanger, a managing director at BDC Capital; and Gilles Duruflé, a consultant.
3 min read · 29 June 2016
Domtar Corp (NYSE, TSX: UFS) has bought the assets of Butterfly Health Inc, a Los Gatos, California-based provider of a personal hygiene solution for accidental bowel leakage. No financial terms were released. Domtar, a Canadian manufacturer of fibre-based products, made the acquisition via its personal care division. It said it would leverage its global footprint to expand commercialization of Butterfly's product in new healthcare markets. Founded in 2012, Butterfly was backed by a number of investors, including Canaan Partners and HealthTech Capital.
2 min read · 29 June 2016
Two Hat Security Ltd, creator of community management software Community Sift, has closed a $1.6 million seed-stage financing. The round was led by Canadian venture capital firm iNovia Capital. U.S. financial services firm Comerica provided an additional $900,000 loan. Community Sift's technology is focused on ending bullying and harassment on the social web. Founded in 2012, the Kelowna, British Columbia-based company currently services communities in over 225 countries. It plans to use the funds raised to recruit employees and advance sales and product development.
4 min read · 28 June 2016
