Investment funding to venture-backed companies based in Canada increased to a record US$2.7 billion in 2017, up from $2.5 billion in 2016, according to a report by PricewaterhouseCoopers and CB Insights.

However, the report noted that the number of deals fell to 333 in 2017 compared with 377 in the year earlier.

The report says artificial intelligence and fintech were bright spots for the market.

Funding to Canadian AI companies totalled $252 million across 31 deals, up from a total of $45 million and 22 deals in 2016.

Meanwhile, funding to Canadian fintech companies increased to $456 million with 37 deals.

That compared with a total of $450 million on 43 deals in 2016.