A three-dimensional composition, a red arrow, breaks through the brick wall and can be used in any design

Canadian venture capital (VC) funding hit an all-time high of US$2.49 billion in the first quarter, shattering the previous record of US$1.52 billion set in Q4 2019, according to a report from KPMG.

Canada’s innovation ecosystem was particularly attractive to foreign investors, who accounted for US$1.82 billion in Canadian VC funding. The majority of foreign investment came from the U.S., KPMG reported.

There were 157 deals in the quarter, including 54 seed financings, 39 early stage financings and 64 later stage financings.

The surge in VC investment was driven by five investment rounds of US$100 million or more, led by the US$350 million raised by Dapper Labs and US$200 million raised by High Power Exploration. Both companies are based in Vancouver.

Rounding out the top five deals were Mississauga, Ont.–based PointClickCare, Toronto-based Top Hat and Oakville, Ont.–based Prodigy Education Inc.

Investors showed particular interest in fintech, software-as-a-service providers and consumer-focused digital solutions, KPMG noted.

In a release, Anuj Madan, partner and national sector leader, technology, media and telecommunications, KPMG in Canada, said the pandemic hasn’t slowed down investment in Canada’s leading innovators.

“To the contrary, VC investment has soared to new heights, solidifying Canada’s position as an innovation hub that’s creating global disruptors,” Madan said.