The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Tag Archives: information technology

Q2 Venture Capital Numbers Do Not Look So Rosy in Canada

world_map_2002When Q2′s venture capital investment numbers came out for U.S. investment, healthcare/biotech investments were on top, beating out even IT investments in that period and generating some optimism.

Dow Jones has released the worldwide Q2 venture capital numbers (H/T @startupcfo, and things do not look so rosy here in Canada:

  • The overall number of VC deals in 1H 2009 Canada was off 30% from 2008 levels, and the average raise was down as well, resulting in a nearly 50% drop in total investment from 2008 levels. That’s over $130 million less invested in 2009.
  • Unlike in the U.S., there was no silver lining for biotech in Canada.  Whereas IT investment was about 1/3 off its 2008 levels, healthcare/bio was off a whopping 62%, raising only $18 million total in the first 6 months of 2009!

One caveat is that things are not quite as bad as they seem on the biotech front, since quarter-to-quarter volatility is normally very high.  In fact, Allostera closed a $17 million A round in July which practically doubles the YTD number from 1H levels, and I don’t expect we’ve seen the end of Q3 biotech VC activity.

Bottom Line: Even if a few banner deals pull the statistics up for Q3, BIOTECanada’s numbers will not improve without OVCF, OETF and Teralys making some sustained commitments to the biotech sector.  No time like the present, folks.

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$700 Million Close Opens the Doors at Teralys Capital

Teralys Capital, the fund-of-funds announced in Quebec’s budget in March, actually closed on its $700 million today and “is now ready to move ahead with its mandate to finance private venture capital funds that invest in technology companies in the life sciences, information technology and clean technology sectors.”  (I guess the extra $125 million they were planning to raise from the private sector went to Excel’s new fund instead!)

I’m still not sure Teralys has a website, and today’s press release ends with “For further information: The telephone number provided below is for the exclusive use of journalists and other media representatives: Josée Lagacé, (514) 850-4835.”  But not if you’re a journalist running a VC fund.  Or a VC.  In other words, don’t call them, they’ll call you.

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