Canadian companies are proving that billion-dollar businesses can be founded and operated in Canada. There were four exits last quarter, making the top 25 exit list!
The market is heating up as companies step into new grounds with innovative products and services. Home automation company Ecobee announced a sale to Generac Power Systems (NYSE: GNRC) for C$990M on Dec 1st. Which puts them in at number 13 spot! Vancouver-based Copperleaf completed an IPO earlier in 2021. It is valued at around one billion dollars. They’ve edged out other big contenders like Rumble from Toronto or Edging To Number 13 Spot Home Automation Company OtterBox. Their stock has been gaining momentum following recent acquisitions by Apple Inc.’s iOS App Store.
In addition to 4 of the top 25 exits being added this quarter (Rumble, Copperleaf Ecobee) adtech company Sharethrough had postponed its IPO. Perhaps they are waiting for Omicron’s impact on public markets. Or rising inflation concerns putting pressure might have something to do with it too.
Meaning of a year’s worth of exit value data
Canadian venture capital has been booming in recent years with 13 of the top 25 largest exit deals. It all came from Canadian companies over this last calendar year alone. Nine out of ten times these successful ventures went public either by way or an IPO, SPACs (Studies Public Offerings). And on their respective exchanges which is why we can expect continues strong performance going forward.
With a 70% appreciation in valuation since last year, Canada’s top 25 startups are now worth more than ever. This is great news not only for investors but also entrepreneurs who want their company to go big!
- 13 of the top 25 largest VC backed tech exits of all time occurred in 2021
- 2021 was the hottest Canadian IPO/SPAC market of all time for tech companies. Out of the top 25 Canadian VC backed exits, 13 companies went public — 9 of those occurred in 2021 (previous high is 2019 with 2 IPOs in the top 25)
- Funding for Canadian firms jumped nearly 200 per cent compared to nearly 50 per cent in the U.S. by the end of the third quarter [The Logic]
- Non-Canadian investors participated in 526 deals in Canada worth a combined US$10.05 billion, according to PitchBook. That’s up from 405 deals worth US$3.14 billion in 2020.
The Logic article mentioned above reports that funding for Canadian firms jumped nearly 200% by the end of the third quarter. Aside from VC fund success, companies themselves have a big question now remains will these be successful and deliver growth as their valuations imply? Can they achieve an exit at all given today’s market conditions?