Q3 Canadian Venture Capital Investment Down 26%

From the land of mounties and hosers: According to a report released by Canada’s Venture Capital & Private Equity Association and Thomson Reuters, a total of CAN$372m in venture capital was invested in Canada in the third quarter of 2008, a decline of 26% from the CAN$501m invested during the same period last year. 123 Canadian-based firms secured venture capital investment during the Q3, down 12% from the 140 companies financed in the same period a year ago.

Q3’s VC investment total of CAN$372m showed improvement over the totals for the first two quarters of this year (you have to look for bright spots anywhere you can, even in Canada!) when venture capital investment in Canada totaled CAN$352m in Q1 and CAN$304m in Q2.

From January through September of this year, over CAN$1bn was invested in 296 companies, a 33% drop from the CAN$1.5bn that went into 336 companies during the same nine-month period in 2007. The average amount invested per business was CAN$3.5m for the first nine months of 2008, a substantial drop compared to an average of CAN$4.6m the year before. Many firms may be looking to get away from the longer term, more capital intensive start-ups that some VC’s have flocked to in recent years.


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