The Cross-Border Biotech Blog

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

Canadian Venture Capital Data from Q2 2010 Shows Big Jump From Q2 2009 but Only Moderate Increase for Biotech

The Q2 issue of Industry Canada’s Venture Capital Monitor is up, and it shows “the highest level of VC activity since Q3 2008,” though that is still “significantly lower than the quarterly average of $440M recorded over the previous five years before the downturn.”

A couple of (particularly) parochial notes:

  1. First-time deals at the seed and start-up stages of development were hurt by a decline in first-time, early-stage investments in Ontario, which recorded only one new deal at the seed or start-up stage in Q2 2010.
  2. Biotech investment saw a 13% increase to $91 million, but it paled in comparison to the 71% increase for IT (to $149 million) and the 377% increase (to $56 million) for “energy and environmental technologies.”

How does the future look? Steady overall. Canadian VC fundraising was down a bit (7% from Q2 2009), totalling only $255 million; but for the year ended June 30, 2010, the total raised was “roughly the same as the annual average from 2005 to 2008.” There is no sector breakdown, though, and everyone our neck of the woods knows we’re due for a turnaround in in Canadian life sciences VC fundraising.

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