CPE Analytics says Canadian venture capital funding rose in the second quarter following a pullback in the first three months of 2023, but funding levels for the first half of the year are still well off what they were for the first six months of 2022.
The financial data firm says there was $1.95 billion in disbursements during the second quarter after $1.3 billion in the first three months.
The $3.25 billion in total disbursements in the first half of the year compares with $4.72 billion in the first six months last year, when rising interest rates started to significantly affect funding.
CPE says the rise in the second quarter was driven by a return of U.S. investors, who so far this year have invested $1.43 billion, accounting for 44% of total funding for the half, compared with 40% by Canadian investors.
Among Canadian provinces, Ontario was the top venture capital recipient for the first half, securing $1.59 billion, ahead of Quebec’s $696 million, B.C.’s $455 million and Alberta’s $365 million.
Information and communications technology companies raised $1.91 billion or 59% of the total amount for the first half, while biotech and cleantech were distant recipient sectors, raising $557 million and $483 million, respectively.