Decoder.ca

Canadian Tech in 100 Words

Venture Capital

Canadian Investor Consortium Reveals $145M for MKB’s Energy Transition Fund

by

The Canada Growth Fund, CDPQ, alongside CDPQ, Investissement Québec, and BDC Capital, announced a $145 million combined commitment to MKB, a Québec growth equity firm investing in companies that advancing Canada’s energy transition. MKB is currently raising its third fund to help scale growing innovative companies in North America. Fund III will target growth-stage businesses which are commercializing proven emission reduction technologies.

“Through its cleantech funds strategy, CGF is seeking to provide further investable capital to Canadian managers to speed up the growth of Canadian cleantech champions,” stated Patrick Charbonneau, CEO of Canada Growth Fund Investment Management.

Want to know more? Check out the source code here.

In Canada, Investors ‘Continue to Navigate the Environment Cautiously’: Report

by

Venture capital investments in Canada in the first half of 2024 reached $3.6 billion across 279 deals, uplifted by a major boost of dollars invested in Q2, a CVCA report finds. Despite this, overall deal volume sits at its lowest since 2020. Seed investments have particularly struggled, raising concerns about Canada’s future pipeline.

“The second quarter of 2024 continued the momentum we saw earlier in the year,” stated CVCA CEO Kim Furlong. “This performance is driven by investors doubling down on companies with proven track records and strong fundamentals, as they continue to navigate the environment cautiously.”

Want to know more? Check out the source code here.

Toronto Fintech Startup Walnut Secures Nearly $5M to Bolster Team and Platform

by

Building on capital from 2022, a $4.6 million round of investment into Toronto’s Walnut Insurance was led by NAventures, with participation from TELUS Global Ventures, Diagram Ventures, Portage, and Highline Beta. Walnut, in the business of modernizing the insurance industry with the latest technology since 2020, says the investment will be used to expand its platform for insurers, brokers, and enterprises, as well as bolster its engineering team and form new partnerships.

The influx of capital “allows us to expand our technology stack, scale our operations, and bring innovative insurance solutions to both insurers and businesses looking to drive new revenue streams,” stated cofounder Adrien Niblock.

Want to know more? Check out the source code on Fintech.ca.

Two Giant Deals Out of Montreal Drive Fintech Capital to Record Highs in Canada

by

A record US$7.8 billion was invested in Canadian fintechs in the first six months of 2024, a figure which is up dramatically over last year’s full-year total of US$1.1 billion. However, more than 90% of this year’s value hails from just two large deals: Private equity investments into two Montréal-based fintechs—Nuvei and Plusgrade—were among the biggest five deals globally, found KPMG’s Pulse of Fintech report.

Nuvei’s US$6B take-private deal was the largest in Canada and the second largest globally. The $1B directed toward Plusgrade was the second largest in Canada and fifth largest in the world. Excluding those two deals, total investment was US$500 million—down 26% from the prior half-year period.

Want to know more? Check out the source code on Fintech.ca.

Perceptive Space Secures Pre-Seed Capital to ‘Protect Infrastructure from Sun’s Fury’

by

A Toronto-born tech startup has emerged from stealth with pre-seed funding to enhance space weather forecasting using artificial intelligence. Led by CEO Padmashri Suresh, Perceptive Space aims to improve the accuracy of predictions for solar flares and geomagnetic storms, which can disrupt satellite operations and power grids. Current space weather predictions from government agencies often lack precision; Perceptive Space’s AI models promise much higher accuracy.

Funding was led by Panache Ventures alongside other investors like Metaplanet and 7percent Ventures. The Canadian company plans to launch its software in 2025 to help satellite operators better manage space and weather risks. 

Want to know more? Check out the source code here.

Optimism on the Rise as Startup Capital Returns to Canada

by

Venture capital in Canada may be seeing signs of a revival, with Q2 2024 investments reaching US$1.3 billion, up from US$800 million in Q1, according to Pitchbook data. This marks an improvement, although still below previous years’ levels. Key factors mentioned include the Bank of Canada’s interest rate cuts and a high-quality startup pipeline. Meanwhile, investors are reporting stronger startups with clearer profitability paths. AI, electric vehicles, and cleantech are among the sectors attracting significant funding.

Despite challenges, there’s optimism for future growth, the data suggests. “We’re starting to see signs of success,” Panache Ventures managing partner Patrick Lor informed The Logic. 

Want to know more? Check out the source code here.

Canada Pours $25M into Venture Capital Firms Targeting ‘Diverse’ Entrepreneurs

by

The Canadian government today announced a $25 million investment into five VC fund managers to support entrepreneurs across the nation as part of a $50 million growth stream of the Venture Capital Catalyst Initiative. Funding will go to Amplify Capital, Pender Ventures, Raven Indigenous Capital Partners, StandUp Ventures, and TandemLaunch Ventures.

“Our government is committed to giving everyone a fair chance at bringing their passion and innovative ideas to the table,” stated Rechie Valdez, Minister of Small Business. “We’re doing this by making more capital available to firms led by women and other members of under-represented communities.”

Want to know more? Check out the source code here.

Is Venture Capital Back on the Rise in Canada? Maybe…

by

Toronto’s venture capital scene is booming, finds a new report, with Q2 2024 investments hitting $2.47 billion, a 76% increase from Q1’s $1.40 billion. Ontario led the charge provincially, capturing $2.10 billion, or 54%, of the national total, with strong regional showings from Vancouver in B.C., Calgary in Alberta, and Montreal in Quebec.

Diving deeper, U.S. investors played a significant role, contributing $2.15 billion, or 55%, of the funds. The Canadian government’s continued backing was also observed to be a crucial factor, outpacing private VC investments by a striking $458 million.

Want to know more? Check out the source code here.