Canadian venture capital investment declines in Q3 following Q2 spikeVenture capital investments in Canadian companies declined during Q3 2005 following a very active second quarter. Total venture investment in Q3 was down 59 per cent to Can$261m from the Can$635m invested in Q2 2005, according to market figures released by Canada's Venture Capital and Private Equity Association and its research partner Thomson Macdonald.
In the year-to-date, venture capital investments in Canada amount to Can$1.23bn, down approximately ten per cent from the Can$1.36bn invested at the end of Q3 2004. Year-to-date, a total of 551 firms have received venture capital funding in Canada, slightly fewer than the 560 firms funded in the same period of 2004.
Rick Nathan, CVCA president and managing director of Goodmans Venture Group, said, 'Third-quarter activity levels are disappointing, however, there are often substantial variations in investment volume across quarters in any given year.'
'Clearly, the Canadian venture capital industry remains undercapitalised,' Nathan added. 'It is increasingly important for our domestic venture industry to address this chronic underfunding, if we wish to successfully finance the best emerging growth companies and entrepreneurs in Canada. This is the top priority of the CVCA, and we have a number of initiatives underway in this area.'
The CVCA has over 1000 members. It fosters professional development, networking, communication, research and education within the venture capital and private equity sector, and represents the industry in public policy matters.
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Private Equity News» By Region» North America» Canada
Private Equity News» By Region» North America» Canada
