Yaletown Partners has conducted a detailed study of Canada’s financing activity to best understand growth hurdles for Canadian technology companies and how to tailor our investments for optimum returns. The research reveals significant gaps in Canada’s capital supply causing Canadian companies to scale more slowly, take longer to exit, and achieve smaller outcomes than U.S. technology peers. The research also shows how deploying capital to underfunded emerging-growth companies can help reverse these trends.
“We did a comprehensive review of technology financing in Canada, looking not just at stage of financing or size, but at the impact of capital flow over time,” said Eric Bukovinsky, Principal, Yaletown Partners. “We found that the capital supply in Canada is both insufficient and inadequately distributed beyond early stage. Canada’s biggest opportunity to realize greater value from our technology sector lies in closing this growth capital gap, currently at one billion dollars and growing.”
Yaletown’s report, titled Canada’s Technology Investment Gap
, reviews over 20,000 financings in the decade since 2006 and 3,000 exits since 2000 across Canada and the United States. The research analyzed data from Pitchbook, Thomson Reuters, CVCA, NVCA, and Yaletown’s own proprietary datasets.