Canadian VC Investments Set A Record In 2019 As Tech Sector Dominates

Canadian VC Investments

Venture Capital (VC) Investment in Canada reached a record high to $6.2 billion Cad for 2019. Venture Capital is a kind of investment for projects that entails a certain amount of risk. This growth in numbers has allowed Canada to make its way back to the Top 10 economies of the world.

Canada is Back in the Top 10 Economies of the World

A report from the World Economic league table said that Canada is now back on being one of the Top 10 largest economies in the world.

Canada clinched the 10th spot with a $2.5 trillion CAD GDP for 2019. The rising figures showed the confidence of investors in the Canadian ecosystem. Canada edged out South Korea as its economy was suffering from the trade war between the US and China.

The Center for Economics and Business Research based in the UK had predicted that Canada would not be in the Top 10, but they were not able to predict its return. As of December 26, Canada’s economy is predicted to be on the 9th spot by 2024 and the 8th spot by 2029.

Two big factors helped Canada to achieve a spot in top-ten economies again. First is the growing number of tourists. Especially Asian and European tourists visit Canada because of pleasure. Canada offers a wide range of entertainment to visitors. Gambling is legal in Canada and most of the tourists go there for casino venues. Canada is well-known of biggest casino venues. Unlike the US and Macau (China), Canada allows casino venues to build their offices in every possible part of the country. International visitors can enjoy the view of the magnificent landscape of the country while playing slots online for real money, that’s a big advantage of Canada. Macau does not allow citizens to gamble and that’s why Asians want to feel freedom in gaming and visit other countries. The percentage of casino tourism has increased due to the implementation of the latest technologies. Canadian casinos dominate not only offline but also the online global market. The synergy and tourism have helped Canada’s economy to get stronger again.

The center said that the growth of Canada’s population brought about by immigration helped in its economy. The attraction of skilled migrants contributed a lot to the increase in the figures.

However, the government of Canada should be mindful of the high unemployment rate, political roadblocks, and federal debt loan as it can pull down Canada from it’s projected progress.

On the other hand, the center sees that China will overtake the US as the world’s largest economy two years later than what it previously projected.

Venture Capital Investments Set Record in 2019

The figures reported by the Canadian Venture Capital and Private Equity Association (CVCA) showed that Venture Capital had a 69 percent increase year-over-year. There was an 11% increase with the average VC deal size last year with a 5.6% deal size compared to the $5 million last 2018.

There’s a difference with the findings of the report released by PwC’s Money Tree since they used data from CB Insights while CVCA used data from Hockeystick. PwC only reported a total of $4.1 billion Canadian VC investments last year.

Tech Companies Lead in VC Investment

66% of the VC investments were given to the information and communication (ICT) companies in Canada. The sector garnered a total of $4.1 billion which is almost double with what the industry received last 2018.

Tech companies receive the bulk of the investments which include: 4515 million from Verafin, $330 million from Clio, $265 million from 1Password and $200 million from Element AI.

It was in the Fourth Quarter of 2019 that it contributed to the annual high. They were able to receive a total of $1.6 billion in investments for 144 deals. One of the biggest of those investments was that of Coveo, who invested a total of $227 million.

After the tech companies, it was life sciences who got the next chunk of the VC investments with 17% or $1.1 billion for 77 deals. It’s followed by cleantech companies with 7% or $407 million for 29 deals.

Canada is Back in the Top 10 Economies of the World

A report from the World Economic league table said that Canada is now back on being one of the Top 10 largest economies in the world.

Canada clinched the 10th spot with a $2.5 trillion CAD GDP for 2019. The rising figures showed the confidence of investors in the Canadian ecosystem. Canada edged out South Korea as its economy was suffering from the trade war between the US and China.

The Center for Economics and Business Research based in the UK had predicted that Canada would not be in the Top 10, but they were not able to predict its return. As of December 26, Canada’s economy is predicted to be on the 9th spot by 2024 and the 8th spot by 2029.

The center said that the growth of Canada’s population brought about by immigration helped in its economy. The attraction of skilled migrants contributed a lot to the increase in the figures.

However, the government of Canada should be mindful of the high unemployment rate, political roadblocks, and federal debt loan as it can pull down Canada from it’s projected progress.

On the other hand, the center sees that China will overtake the US as the world’s largest economy two years later than what it previously projected.