Canada’s Top VC Deals of 2018’s Second Quarter Highlight Tech Growth

It has been a great year for the technology sector in Canada, so many companies have raised massive funding rounds, leading to a record-setting first quarter.

The second quarter looks to be following the same storyline, as the ten largest deals are comprised mostly of tech companies picking up large rounds totalling over $560 million (all figures CAD unless noted). This is just over the 2017 total for the same time period ($561 million), and well over the 2016 total ($501 million), according to PE Hub Canada. VC activity is continuing to grow and keep pace with the burgeoning tech industry that is taking shape in Canada as a whole.

In total, VCs have invested approximately $100 million more in the first half of 2018 when compared to last year. The ten largest deals for the second quarter are listed below.

  • Coveo came in on top, raising a huge $100 million round of follow-on funding. The Quebec City-based company builds AI-powered engines to provide insight for clients.
  • Ritual picked up a $70 million USD Series C to continue expanding their food, coffee and beverage ordering platform to new cities and countries. It is based in Toronto.
  • TouchBistro raised $72 million to bring their total funding well over the $100 million mark. The Toronto-based company is a POS platform that si quickly expanding throughout North America.
  • Breather pushed their total funding above $150 million with a $45 million USD round in June. The Montreal company partners with local companies and spaces to offer flexible workplaces.
  • Flexiti Financial has been making huge moves this quarter, all enabled by a $50 million equity investment from Globalive Capital. The Toronto fintech company offers POS and credit management options.
  • Ecobee continued their fundraising prowess with an additional $47 million added onto their Series C, a move they had already discussed when they raised the original $80 million round earlier this year. The Toronto company makes smart home products such as thermostats and light switches.
  • Elastic Path picked up a $43 million Series B to continue providing their commerce solutions. The company is based in Vancouver.
  • Uberflip raised $41 million to continue building out solutions for their 1,000-plus clients. The Toronto company offers a cloud-based content experience platform.
  • Canary Medical, based in Vancouver, raised $33 million for the medtech company’s first public financing round.
  • SoundBite Medical Solutions picked up over $25 million to develop their cardiovascular medtech solution. The company is based in Montreal.

In total, five of the ten largest VC deals went to companies based in Toronto, and two each to Montreal and Vancouver. Seven of the companies could be defined as pure-tech companies, with Breather acting more as a tech-solution. The other two are involved in the medical technology space.

If these kinds of large deals continue—and they could get even bigger, with rumours of companies like Element AI looking to raise rounds worth over $250 million—the technology sector in Canada is prime to continue its explosive growth well into the next half of 2018.