Government of Canada | Gouvernement du Canada
Symbol of the Government of Canada
Skip to content | Skip to institutional links

Common menu bar links

Home > Research Reports > Risk Capital > Venture Capital > Canadian Venture Capital Activity: An Analysis of Trends and Gaps (1996-2002)

   Next


Canadian Venture Capital Activity: An Analysis of Trends and Gaps (1996–2002)

May 2004

Download the PDF version [2.9 MB] of this report.

To access the Portable Document Format (PDF) version you must have a PDF reader installed. If you do not already have such a reader, there are numerous PDF readers available for free download or for purchase on the Internet:

This publication is available upon request in multiple formats.

Multimedia Services Section
Communications and Marketing Branch
Industry Canada
Room 264D, West Tower
235 Queen Street
Ottawa ON K1A 0H5

Tel.: 613-995-8552
Fax: 613-947-7155
E-mail: production.multimedia@ic.gc.ca

54059E

Table of Contents

Acknowledgement

Note to Readers

Executive Summary

Introduction

Part I: Venture Capital in the Overall Small and Medium-Sized Enterprise Financing Context
Part II: Analysis of Venture Capital Activity and Trends 1996–2002
Part III: State of Current Government Actions Related to Venture Capital
Part IV: Analysis of Gaps/Outstanding Issues and Policy Questions
Conclusions

Appendixes

List of Tables and Figures

Tables

Table 1: Top 10 Canadian Investors in Canada in Terms of Companies Financed in 2002
Table 2: Total Growth of Venture Capital Funds and Firms by Sector in Canada, 1996–2002
Table 3: Regional Distribution of Venture Capital Funds in Canada, 1996–2002
Table 4: Investment Returns for Periods Ending December 2002
Table 5: Growth of Venture Capital Firms and Venture Capital Funds in Canada and in the United States, 1996–2002
Table 6: Summary of Venture Capital Investment Activity in Canada and in the United States, 1996–2002
Table 7: Performance Returns of Venture Capital and Private Equity Funds in Canada and in the United States as of 12/31/2001
Table 8: Five-Year Rolling Averages: Venture Capital Versus Public Markets
Table 9: Average Deal Size by Region, 1996–2002
Table 10: Top 10 Transactions in Canada in 2002
Table 11: Comparison of New Versus Follow-On Venture Capital Investments in Canada and in the United States, 1996–2002
Table 12: Summary of Venture Capital Investments by Stage of Firms in Canada and in the United States, 1996–2002
Table 13: Summary of Venture Capital Investments by Sector in Canada and in the United States, 1996–2002
Table 14: Summary of Venture Capital Activity Growth in Canada Versus Each Region, 1996–2002
Table 15: Summary of Regional Venture Capital Investment Trends, 1996–2002
Table 16: Summary of Venture Capital Funds Raised, Capital Under Management and Capital Available by Investor Type, 1996–2002
Table 17: Distribution of Venture Capital Investments for Each Type of Investor, 1996–2002
Table 18: Key Strengths Related to Canadian Venture Capital Activity Trends, 1996–2002
Table 19: Key Weaknesses and Challenges and Related Policy Issues
Table 20: Summary of Indirect Measures Oriented Toward the Suppliers of Venture Capital
Table 21: Summary of Direct Quasi-Equity Programs — Federal and Provincial
Table 22: Proportion of Total Venture Capital Investments by Investor Type by Region, 1996–2002
Table 23: Summary of Direct Equity Programs — Federal and Provincial
Table 24: Summary of Programs Targeted at the Demand for Venture Capital
Table 25: Summary of Venture Capital Market Weaknesses, Related Government Actions and Outstanding Issues for Potential Action

Figures

Figure 1: Distribution of Equity by Source for Canadian High-Growth and Non-High-Growth Small and Medium-Sized Enterprises, 2000
Figure 2: Distribution of Equity by Source for Canadian Knowledge-Based Industry and Non-Knowledge-Based Industry Small and Medium-Sized Enterprises, 2000
Figure 3: Types of Equity Financing by Stage of Development and Amount Required
Figure 4: Components of Innovation System
Figure 5: Growth in the Number of Venture Capital Firms and Funds, 1996–2002
Figure 6: Canadian Venture Capital Activity Trends, 1996–2002
Figure 7: Number and Value of Canadian Initial Public Offerings, 1991–2000
Figure 8: Number and Value of American Initial Public Offerings, 1991–2000
Figure 9: Stock Market Indices, 1996–2002
Figure 10: Venture Capital Under Management as a Percentage of Gross Domestic Product in Canada and in the United States, 1990–2002
Figure 11: Venture Capital Investments as a Percentage of Gross Domestic Product in Canada and in the United States, 1991–2002
Figure 12: Venture Capital Investments per Capita in Canada and in the United States, 1996–2002
Figure 13: Summary of Venture Capital Activity Trends in Canada and in the United States, 1996–2002
Figure 14: Venture Capital Investments as a Percentage of Gross Domestic Product Among Key Organisation for Economic Co-operation and Development Countries, 1995–2000
Figure 15: Venture Capital Investment Trends by Deal Size, 1996–2002
Figure 16: Regional Distribution of Very Small Deals (< $500 000), 1996–2002
Figure 17: Regional Distribution of Small Deals ($500 000 to $1 Million), 1996–2002
Figure 18: Regional Distribution of Mid-Sized Deals ($1 Million to $5 Million), 1996–2002
Figure 19: Regional Distribution of Large Deals ($5 Million and Over), 1996–2002
Figure 20: New Versus Follow-On Venture Capital Investment Trends, 1996–2002
Figure 21: Regional Distribution of New Investments, 1996–2002
Figure 22: Regional Distribution of Follow-On Investments, 1996–2002
Figure 23: Venture Capital Investment Trends by Stage of Development, 1996–2002
Figure 24: Regional Distribution of Early-Stage Venture Capital Investments, 1996–2002
Figure 25: Regional Distribution of Later-Stage Investments, 1996–2002
Figure 26: Venture Capital Investments as a Percentage of Gross Domestic Product in Major Organisation for Economic Co-operation and Development Countries, 1995–2000
Figure 27: Average Share of Venture Capital Investments and Venture Capital Financings by Sector, 1996–2002
Figure 28: Venture Capital Investments by Sector, 1996–2002
Figure 29: Average Share of Venture Capital Investment by Sector and Region, 1996–2002
Figure 30: Information Technology Venture Capital Activity Trends, 1996–2002
Figure 31: Life Sciences Venture Capital Activity Trends, 1996–2002
Figure 32: Other Technology Trends, 1996–2002
Figure 33: Traditional Venture Capital Activity Trends, 1996–2002
Figure 34: Regional Distribution of Venture Capital Investment, Knowledge-Based Industry Firms and Gross Domestic Product in Canada, 2001
Figure 35: Trends in Regional Distribution of Venture Capital Activity, 1996–2002
Figure 36: Ontario Venture Capital Activity Trends, 1996–2002
Figure 37: Quebec Venture Capital Activity Trends, 1996–2002
Figure 38: British Columbia Venture Capital Activity Trends, 1996–2002
Figure 39: Prairies Venture Capital Activity Trends, 1996–2002
Figure 40: Atlantic Venture Capital Activity Trends, 1996–2002
Figure 41: Regional Distribution of Venture Capital Investment and Gross Domestic Product in the United States, 2002
Figure 42: Fund-Raising Trends by Investor Type, 1996–2002
Figure 43: New Capital Raised by Source, 1996–2002
Figure 44: Capital Under Management by Investor Type, 1996–2002
Figure 45: Total Amounts Invested by Investor Type, 1996–2002
Figure 46: Amounts Invested and Number of Financings by Labour-Sponsored Venture Capital Corporations, 1996–2002
Figure 47: Amounts Invested and Number of Financings by Private Independent Funds, 1996–2002
Figure 48: Amounts Invested and Number of Financings by Institutional Funds, 1996–2002
Figure 49: Amounts Invested and Number of Financings by Corporations, 1996–2002
Figure 50: Amounts Invested and Number of Financings by Government-Owned Funds, 1996–2002
Figure 51: Amounts Invested and Number of Financings by Foreign Investors, 1996–2002
Figure 52: Canadian Venture Capital Investments Outside Canada, 1996–2002


   Next


Date Modified: 2009-10-26

Top of page
Important Notices