(April 6 – 11:00 ET) – Venture capital investments are booming according to data released today from the Canadian Venture Capital Association. The CVCA’s annual survey of 109 venture capital investment groups finds that venture investment was up 60% in 1999, to $2.7 billion.
“Our nation’s venture capital industry is extremely vital in terms of its support of Canadian entrepreneurs, and there’s no question we’ve stepped up to the plate to invest prudently yet bullishly – particularly in high technology emerging Canadian enterprises,” says Ron Begg, president of CVCA.
Venture capital under management is up 20% from 1998 to $12.1 billion, according to the CVCA. The average deal size also rose from $1.5 million in 1998 to $2.75 million in 1999. Begg says the average deal in the U.S. is about $10 million and that Canadians must continue to ramp up their investments to compete.
Mary Macdonald, president of Macdonald & Associates Ltd. which does the CVCA’s research says, “The Canadian VC industry is not only getting bigger, it is also becoming more knowledgeable, more specialized and more sophisticated. As a result, venture capitalists in this country are able to make an important contribution to the growth and success of Canadian technology companies.”
Tech firms accounted for 80% of the $2.7 billion invested, although the number of investments was unchanged from 1998.
-IE Staff