(March 23 – 17:50 ET – There has been a significant increase in the amount of venture capital flowing into Quebec-based companies, according to data compiled for Réseau Capital, Québec’s venture capital industry association. About forty venture capital companies investing in Quebec were surveyed.

In total, 615 rounds of financing were carried out in 2000, a 41% increase over the 465 operations in 1999. By comparison, the Canadian industry as a whole saw a decline in the number of financings. Last year, the amount invested in Quebec companies skyrocketed to $1.3 billion, up by a spectacular 79% compared to the $727 million invested in 1999.

Overall, the Canadian risk-capital market, including investments from outside the country, also enjoyed strong growth. The capital invested in Canada jumped by 132%, up from $2.7 billion in 1999 to $6.3 billion.

In 2000, venture capital under management in Quebec continued to climb, reaching $8.6 billion, an increase of 37% over the $6.3 billion of the previous year. The industry resources managed from Quebec represents 46% of the $12 billion under management across the country, compared to 52% in 1999.

The amount of new capital continued to increase, reaching $2 billion compared to $1.15 billion in 1999, which represents a 73% increase. About 43% of this new capital came from individuals, most of whom were investing in workers investment funds through RRSPs.

Réseau Capital is the association of the Quebec venture capital industry, with 560 active members. Its mission is to encourage the development of the industry and its members through activities that include industry monitoring, training, information gathering, networking and promotion of their interests.
-IE Staff