Venture Capital Deal-making Jumps 55% in Canada

Venture capital deal-making skyrocketed 55% in Canada in the first quarter of 2013, according to a new report from Thomson Reuters.

The report says that deals totalled $460 million, led by the clean-tech sector’s $180 million—39% of the total value. IT claimed second spot with $143 million invested. VC-backed exits also rose in the first quarter.

Investors are also investing more than last year: an average of $3.4 million per company, up from $2.5 million in Q1 2012.

Canada is trending better than the US currently, according to the report. The pace of investment activity in the US VC market was “somewhat slower” in the first quarter of 2013, or 6% below the year-ago quarter.

Ontario and Quebec have led the charge for venture capitalism in Canada so far this year. Quebec accounted for 49% of all investing in the first quarter ($226 million), while BC accounted for 16%. Ontario accounted for $133 million.

Both domestic and foreign VC funds were more active in the Canadian market in the first quarter of 2013, says Thomson Reuters. Canadian funds invested a combined $364 million in Q1 2013, up 66% from the the same time in 2012. American and other foreign VC funds brought 24% more than the $78 million they invested in Q1 2012. However, because of the even larger increase in Canadian fund activity, foreign funds accounted for a relatively sub-par 21% of total dollars invested in Q1 2013.