2020 YEAR IN REVIEW CANADIAN MARKET OVERVIEW

VC Investment in 2020 closes at $4.4B – Second Highest on Record Contents

ABOUT CVCA...... 1 MESSAGE FROM THE CEO...... 3 2020 HIGHLIGHTS...... 4 SPOTLIGHT ON VENTURE CAPITAL IN ATLANTIC CANADA...... 3 PRIVATE CAPITAL FUELS CANADA’S COVID-19 RECOVERY...... 5 ABOUT CVCA VENTURE CAPITAL HEAT MAP...... 7 VENTURE CAPITAL INVESTMENT ACTIVITY...... 12-13 ACTIVITY QUARTER OVER QUARTER...... 12 OUR VISION ACTIVITY BY DEAL SIZE...... 13 A thriving Canadian economy driven by private capital EMPLOYEES SUPPORTED...... 14 BY VC INVESTMENT...... 12 OUR MISSION BY CITY...... 13

CVCA’s mission is to help our members fuel the economy TOP 10 DISCLOSED CANADIAN VC DEALS...... 18 of the future by growing the businesses of today. We do TOP 10 CANADIAN CITIES/ADMINISTRATIVE CENTRES...... 19 this by supporting and connecting a vibrant private capital VC SECTOR BREAKDOWN...... 20 industry with advocacy, research, and education. VC STAGE BREAKDOWN...... 21 VENTURE HEAT MAP...... 22 CVCA is also the nation’s ultimate resource for data on VC EXITS...... 24 Canadian private capital investments. TOP DISCLOSED VC EXITS...... 25 MOST ACTIVE VC FIRMS & FUNDS...... 26

FOREIGN VCS IN CANADA...... 28 VC MEMBER LANDSCAPE...... 30 TOP 25 VENTURE-BACKED COMPANIES BY TOTAL FUNDS RAISED...... 24 PARTICIPATING DATA CONTRIBUTORS...... 26 CVCA METHODOLOGY...... 28 2020 HIGHLIGHTS

MESSAGE 2020 saw the second-highest A total of 26,277 jobs were level of VC investment on record. supported by VC investment as of FROM THE CEO Q4 2020. Second only to 2019, Canadian VC invested $4.4B across 509 deals in 2020. This includes 15,695 jobs in the ICT sector. 2020 was a remarkable year for Canadian venture capital, particularly in the second half where the market demonstrated real resiliency. The long-term health of the Canadian innovation The momentum of VC-backed A number of mid-cap Canadian ecosystem, including venture investment, is critical as we exits is on track relative to biotech and pharmaceutical continue to navigate the impacts from the COVID-19 pandemic. It is imperative that we continue to grow the capital available to previous years. companies also went public on the Canadian entrepreneurs, as venture capital plays a vital role in NASDAQ. There were 38 exits in 2020 totalling $1B. Canada’s economic recovery and future growth. This includes Montréal-based cancer-drug developer Repare Therapeutics and Hamilton- The largest exit in 2020 was also based Fusion Pharmaceuticals. the largest exit on record. KIM FURLONG CEO CANADIAN VENTURE CAPITAL & ASSOCIATION Vancouver-based biotech company Abcellera Seed-stage investments saw listed on NASDAQ with a market cap of $6.7B. the highest average deal size on record at $2M.

Late-stage investment (Series C+) A 41% increase from 2019 levels and more than reached the highest level on record. doubling the amount from 5 years ago.

Dollars invested increased by 48% from the previous year and 53% compared to 5-year average (2015-19).

2020 HIGHLIGHTS | 5 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW

Atlantic Canada’s startup news was Halifax’s CarbonCure Technologies in September closed dominated in 2020 by the sale of St. John’s- a funding round led by Amazon and Breakthrough based Verafin, which produces anti-fraud and Ventures. The amount raised wasn’t released but the anti-money-laundering software, to Nasdaq size of the investors suggests a raise of eight figures. for US$2.75 billion. CarbonCure is also front and centre in Big Tech’s mission to remove carbon dioxide from the atmosphere, and Atlantic Canada has finally found its unicorn, and the is one of the leading companies receiving offsets from SPOTLIGHT ON VENTURE CAPITAL result will be a stronger IT community in the region, giants like Stripe and Microsoft. especially in St. John’s. Although we haven’t yet tabulated 2020 employment The marriage of Nasdaq and Verafin will produce at Atlantic Canadian startups, Patrick Hankinson at IN ATLANTIC CANADA Concrete Ventures estimates job levels by analysing a leader in “Anti FinCrime”, as they call it, bringing by ENTREVESTOR Verafin’s best-in-class software into a stock exchange LinkedIn data. He said that the startup community in with relationships with the world’s biggest financial Atlantic Canada produced a net 654 new jobs in 2020, institutions. The partners said the “Anti FinCrime” sector bringing the total to 10,337 jobs – an increase of almost is now worth US$12.5 billion and is expected to grow at a 7%. Of the companies that he’s tracking, 40% added 17% annual pace through 2024. staff, 29% had no change and 31% shed employees.

Exits were a big glittery story on the East Coast in 2020, Similarly, we haven’t calculated revenue data yet, but though it could be argued an equally important story several companies have told us their sales soared in the was the resilience shown in coping with the pandemic. past year. In April, Squiggle Park CEO Julia Rivard said A GROWING Overall growth slowed, but the community avoided the her EdTech company’s monthly revenues rose 400% in flood of bankruptcies that observers feared in early March. Other companies have told us of strong revenue March. growth last year -- 95% by Fredericton’s Beauceron COMMUNITY THREE IN THE Security and 254% by New Brunswick’s Mesh/Diversity The Entrevestor Databank, which tracks high- The preliminary figures in the Entrevestor Databank (as of October). growth companies in Atlantic Canada, comprised list a total of 720 companies for 2020, up 3% from 697 720 companies at the end of 2020. It grew by 3% FAST 50 the previous year. That’s the slowest growth rate we’ve Among the other exits, Halifax-based sportstech during the pandemic, down from the customary Three Atlantic Canadian companies made the 2020 reported in seven years of collecting this data, and company Kinduct was sold to mCube, a Silicon Valley 15% annual growth of the last seven years. Deloitte Tech Fast 50, the most ever: Fredericton- compares with a record-high growth rate of 27% in 2019. company that produces the world’s smallest sensors, and Washington-based Introhive at #19 (having been We have recorded about 80 new companies in 2020, for an undisclosed price. Kinduct had previously closed #10 in 2019); Kraken Robotics of St. John’s at #36; roughly half the number of 2019. a led by Intel Capital. Halifax-based and Halifax’s Proposify at #45. SalesRight, which helps B2B Software-as-a-Service EXITS The CVCA data shows a decrease in venture capital companies simplify their pricing, was acquired by Santa Barbara, Calif.-based FastSpring for an undisclosed price. The biggest news of 2020 was Nasdaq’s US$2.75B funding to $90 million in 34 deals in Atlantic Canada, It was the first exit for early-stage investors Concrete acquisition of St. John’s-based fintech company but the funding was bound to fall after Verafin booked Ventures of Halifax and Island Capital Partners of Verafin. Other notable exits included Halifax a $515 million funding round in 2019. There were some COMPANIES MOVING Charlottetown. companies Kinduct (bought by mCube) and notable VC deals last year. Cloud security company SalesRight (bought by FastSpring). Sonrai Security closed a US$20 million round led by TO ATLANTIC CANADA Menlo Ventures of Silicon Valley. The round also drew the backing of returning investors Polaris Partners and Atlantic Canada’s success in suppressing COVID-19 Ten Eleven Ventures. has accelerated the migration of companies to the FUNDING region. At least a dozen startups made the move recently, such as IndieBio alumni Reazent of India The CVCA says East Coast startups raised $90 ABOUT ENTREVESTOR million in 34 VC deals in 2020, the weakest showing and Kraken Sense of Mississauga. in three years. The average deal was $2.6 million as Entrevestor was founded in 2011 by writers Peter and Carol Moreira as a portal to unite and inform the startup companies attracted growth-stage funding despite community in Atlantic Canada. It posts daily news on Atlantic Canadian startups on its website, www.entrevestor.com, the pandemic. and it provides the benchmark data for the East Coast startup community.

6 SPOTLIGHT ON ATLANTIC CANADA | 7 CANADIAN VENTURE CAPITAL MARKET OVERVIEW | Q4 2020 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW

TESTING & TREATMENTS PRIVATE CAPITAL FUELS CANADA’S

COVID-19 RECOVERY STAYING SAFE AT HOME CVCA Member Portfolio Companies E-HEALTH

WORK FROM HOME

SAFETY EQUIPMENT

THANKS TO THE SUPPORT OF CVCA MEMBER INVESTORS: BCF VENTURES • BDC CAPITAL • CLEARSPRING CAPITAL PARTNERS CONEXUS VENTURE CAPITAL • INFORMATION VENTURE PARTNERS INC. LUMIRA VENTURES • MARS INVESTMENT ACCELERATOR FUND • MCROCK CAPITAL NOVACAP MANAGEMENT INC. • RELENTLESS VENTURE FUND • RIPPLE VENTURES TELUS VENTURES • XPV WATER PARTNERS

8 PRIVATE CAPITAL FUELS CANADA’S COVID-19 RECOVERY | 9 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW

2020 VENTURE CAPITAL $4.4 BILLION total invested into HEAT MAP 509 DEALS

The top three provinces with the highest level of VC investment activity are Ontario, Quebec, and BC. Ontario received the highest percentage of dollars invested as well as deal volume, with $1.9B or 44% of total dollars invested in 2020. Toronto accounted for $1.2B and 164 of those deals. Quebec came in second with 23% of all dollars invested, and BC received 20% of total dollars 69 invested. These 3 provinces account for nearly 90% of the total dollars invested in 2020. An honorable mention 51 6 $9M goes to the province of Alberta, which saw the highest Newfoundland level of VC investment on record in 2020. 7 131 and Labrador 5 ICT (Information, Communications & Technology) and 1 Life Sciences sectors received over 80% of all the 14 $6M investments made in 2020, with ICT deals accounting for 212 13 Prince Edward more than half of the investment in the year with $2.4B Island over 284 deals. The Life Sciences sector received 26% $893M of total investments with $1.1B over 89 deals. British $455M $15M $65M Columbia Alberta Saskatchewan $37M $10M Nova Scotia Manitoba New Brunswick $2B $1b Ontario Québec

PRINCE EDWARD NEWFOUNDLAND TOP SECTORS PER PROVINCE BRITISH COLUMBIA ALBERTA SASKATCHEWAN MANITOBA ONTARIO QUÉBEC NEW BRUNSWICK NOVA SCOTIA ISLAND AND LABRADOR

BY NUMBER OF DEALS ICT ICT ICT ICT ICT ICT ICT ICT ICT ICT 40 28 6 5 123 61 12 5 1 3 LIFE SCIENCES LIFE SCIENCES AGRIBUSINESS LIFE SCIENCES LIFE SCIENCES LIFE SCIENCES CLEANTECH 12 8 1 35 30 4 1

10 AGRIBUSINESS AGRIBUSINESS AGRIBUSINESS CLEANTECH CLEANTECH 1 3 9 13 3 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW VENTURE CAPITAL VENTURE CAPITAL INVESTMENT ACTIVITY INVESTMENT ACTIVITY

ACTIVITY QUARTER-OVER-QUARTER ACTIVITY BY DEAL SIZE

2020 saw the second-highest level of annual VC investment based on our Over 60% of the deals in 2020 were less than $5M, with most of these deals existing records, with $4.4B across 509 deals, second only to 2019, an outlier ranging between $1M-$5M. There were 17 megadeals ($50M+) accounting year marked by megadeals. In Q4 of 2020, VC investments in Canada came for 38% of total dollars invested in the year. As a result of the greater number in at just under $1B across 126 deals (including 4 megadeals), which was 1.5x of megadeals ($50M+) in Q4 compared to the previous quarter, the average lower than the same quarter in 2019 ($1.5B invested in Q4 2019). Overall, deal size in Q4 2020 was $7.8M. total dollars invested in 2020 was higher than the five-year average ($3.8B and 517 deals in 2015-2019) with lower number of deals.

Total Deals $ Millions $ Millions Invested # Deals < $2,500 200 $100K 20 $1

$2,250 180 163 $100K - $500K 49 $11 $2,000 151 160 145 143 139 $1,750 134 140 128 129 126 $500K - $1M 55 $36 120 118 $1,500 125 124 111 130 127 120 116 117 $1M - $5M $1,250 108 100 160 $372 104 $1,000 80 $5M - $20M 130 $1,238 $750 60

$500 40 $20M - $50M 37 $1,079

$250 20 1,268 897 1,350 2,414 1,506 940 703 717 839 592 864 1,055 629 1,070 710 916 847 985 1,695 $ $ $ $ $ $ $ $ $ $ $ $1,114 $ $ $ $ $ $ $ $ $50M + 21 $1,705 $0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2016 2017 2018 2019 2020 TOTAL: TOTAL: TOTAL: TOTAL: TOTAL: 528 DEALS 453 DEALS 508 DEALS 560 DEALS 509 DEALS $3.2B $3.6B $3.7B $6.2B $4.4B 37% OF was above $5m

12 | VENTURE CAPITAL INVESTMENT ACTIVITY QUARTER-OVER-QUARTER VENTURE CAPITAL INVESTMENT ACTIVITY BY DEAL SIZE | 13 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW EMPLOYEES SUPPORTED EMPLOYEES SUPPORTED BY YTD VC INVESTMENT BY CITY

SOURCE: A total of 26,277 people were employed by VC-backed companies as of Q4 2020. These employment numbers represent only those positions in VC-backed companies that received VC funding as of Q4 2020 YTD.

Ontario has the greatest number of venture-backed jobs across all the provinces, including 6,847 jobs in Toronto, followed by Quebec has 4,347 including 3,665 in Montréal.

4,592 TOP 2 CITIES BY EMPLOYEE COUNT IN VC-BACKED COMPANIES 2,542 146 78 877 4,876 Toronto Montréal 19 369 11,247 329 8,203 4,004 25,942 EMPLOYEES SUPPORTED Total Employees City ICT Life Sciences CleanTech Agribusiness Supported by VC

Toronto 8,203 4,163 1,496 462 52 Deal # of Employees Supported Sector # of Employees Supported Type in 2020* in 2020* Montréal 4,004 1,940 699 196 32

Seed 2,510 ICT 15,695 Vancouver 3,781 2,502 471

1,739 99 16 Early Stage 8,222 Life Sciences 3,714 Calgary 2,123

Kitchener 1,441 1,097 123 19 Later Stage 8,632 Cleantech 961 Ottawa 646 409 14

Growth 1,523 Agribusiness 310 Winnipeg 492 492

Edmonton 408 307 59 26 *Employment numbers represent only those VC-backed companies that received VC funding in 2020.

14 | EMPLOYEES SUPPORTED BY YTD VC INVESTMENT EMPLOYEES SUPPORTED BY CITY | 15 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW TOP 10 TOP 10 DISCLOSED CANADIAN CITIES/ CANADIAN VC DEALS ADMINISTRATIVE CENTRES Total Deals $ Millions

COMPANY 1. Toronto PROVINCE DISCLOSED VC FIRM(S) SECTOR STAGE $ MIL 164 $1,273 NAME 2. Montréal 102 $856

BRITISH PRESIGHT CAPITAL, ORBIMED ADVISORS, DCVC BIO, LIFE LATER ABCELLERA $144 3. Vancouver COLUMBIA VIKING GLOBAL INVESTORS, FOUNDERS FUND SCIENCES STAGE 55 $767

4. Calgary ECOR1 CAPITAL, LLC, ORBIMED PRIVATE INVESTMENTS 33 $353 VII, LP, ROCK SPRINGS CAPITAL MANAGEMENT, AVIDITY PARTNERS, VERSANT VENTURE MANAGEMENT, LLC, 5. Kitchener, Waterloo, Cambridge CHINOOK BRITISH LIFE 26 $460 APPLE TREE PARTNERS II - ANNEX, L.P., SAMSARA PRE-IPO $140 THERAPEUTICS COLUMBIA SCIENCES BIOCAPITAL, SURVEYOR CAPITAL, NORTHLEAF CAPITAL PARTNERS, SPHERA GLOBAL HEALTHCARE FUND, ALLY 6. Edmonton 17 $100 BRIDGE GROUP, MONASHEE INVESTMENT MANAGEMENT 7. Ottawa 15 $157 LATER MIOVISION ONTARIO TELUS VENTURES, MCROCK CAPITAL PARTNERS ICT $120 STAGE 8. Halifax 9 $4

WEALTHSIMPLE TCV, , MERITECH CAPITAL, ALLIANZ LATER 9. Laval ONTARIO ICT $114 8 $31 FINANCIAL CORP. X, TWO SIGMA VENTURES STAGE 10. St. John’s, NL 6 $9 PLUG AND PLAY LLC, ARTIMAN VENTURES, BDC CAPITAL, LATER APPLYBOARD ONTARIO ICT $100 ANTHOS MANAGEMENT, LLC, FMR LLC, DRIVE CAPITAL STAGE

INOVIA CAPITAL, WESTCAP, BDC CAPITAL, LATER HOPPER QUÉBEC INVESSTISMENT QUEBEC, CAISSE DE DEPOT ET ICT $98 STAGE PLACEMENT DU QUEBEC, OMERS VENTURES

VENTUS LIFE EARLY QUÉBEC GV MANAGEMENT COMPANY, L.L.C., VERSANT VENTURES $85 THERAPEUTICS SCIENCES STAGE #1 TORONTO

VERSION ONE VENTURES, OMERS VENTURES, TECH LATER JOBBER ALBERTA ICT $76 PIONEERS FUND STAGE $1.3B 6 10 , GEORGIAN PARTNERS INC., 3 LEADERS FUND INC., INOVIA CAPITAL INC., EMERGENCE LATER 4 TOP HAT ONTARIO ICT $73 CAPITAL PARTNERS, BMO BANK OF MONTRÉAL STAGE 164 DEALS 9 INNOVATION BANKING GROUP 2 8 MISTRAL VENTURE PARTNERS INC., IGNITION PARTNERS, LATER 7 SYMEND ALBERTA BMO CAPITAL PARTNERS, TELUS VENTURES, SILICON ICT $73 STAGE VALLEY BANK, INOVIA CAPITAL, BDC CAPITAL 5 1

16 | TOP 10 DISCLOSED CANADIAN VC DEALS TOP 10 CANADIAN CITIES/ADMINISTRATIVE CENTRES | 17 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW VC SECTOR VC STAGE BREAKDOWN BREAKDOWN

2020 saw the highest average deal size on record for seed-stage ICT companies received more than 55% of total VC dollars invested in investments at $2M, representing a 41% increase from 2019 levels and more 2020 ($2.4B over 284 deals), a 40% decrease from the previous year’s than doubling average deal size from 5 years ago. On the other hand, early $4.0B. Meanwhile, Life Science companies received 26% of dollars invested stage (Series A and B) investments dropped 33% from 2019. Until 2020, early ($1.1B over 89 deals), a 10% increase from the previous year. Cleantech stage investments saw a steady upward trend in average deal size since and Agribusiness companies both saw a decrease in deal flow and dollars 2013. With 2020’s level dropping below 2017 levels, it signifies a potential invested compared to the previous year. decrease in Series A and B valuations in Canada.

$ Millions Invested # Deals $ Millions Invested # Deals $3,000 360 2,742 4,028 $ $4,000 $ 480 $2,750 330 $3,300 440 $2,500 300 $3,000 400 $2,250 262 270 2,027

1,953 263 $ $2,700 360 $ 232 241 2,433 2,428 $2,000 240 1,725

322 2,259 $ $ $

$ 316 $1,667 $2,400 320 1,564 1,594

$1,750 1,545 210 $ 194 $ 1,422

269 $ 1,914 1,368 300 1,353 $2,100 284 280 178 177 192 $ $ $ $1,500 $ 180 $1,800 240 $1,250 150 $1,500 200 154 153

1,158 $1,000 120 1,051 $1,200 $ 160 98 $ 85 85

723 119 $750 90 646 $900 672 120 $ $ $ 310 $500 304 79 60 104 414 278 400

80 251

$600 $ 236 $ 92 95 208

89 212 $ $ 59 $ $ 147 $ 185 185 158 $ $ 94 $ 30 28 101 $250 $ $ $300 27 $ 40 25 49 29 29 $80 43 27 $ $ 22 19 10 $0 22 0 $0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2019 2020

ICT LIFE SCIENCES CLEANTECH AGRIBUSINESS SEED EARLY STAGE LATER STAGE GROWTH EQUITY

18 | VC SECTOR BREAKDOWN VC STAGE BREAKDOWN | 19 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW

VENTURE DEBT* $378 MILLION HEAT MAP total invested into 64 DEALS 2020 saw a total $378M in venture debt invested across 64 deals, more than doubling the amount invested with around half the deal count compared the previous year ($182M across 129 deals in 2019), demonstrating a 4x increase in the average venture debt deal size over the last two years. 11 * VC Debt deals are not included in the overall Canadian VC activity 4 1 1 20

24 1 $47M 2 British Columbia $2M Alberta NA $2M NA Saskatchewan Manitoba $245m $2M Nova Scotia Ontario New $80M Brunswick Québec

20 VENTURE DEBT HEAT MAP | 21 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW VC TOP EXITS DISCLOSED VC EXITS

Among the top exits in 2020, a number of other mid-cap Canadian The momentum of VC-backed exits is on track relative to previous years, with companies in the biotech and pharmaceutical sectors went public in 2020, a total of 38 exits in 2020, which is only slightly below the 5-year average of all on the Nasdaq. The trend points to Canadian companies bypassing the 40 exits. 2020 also saw the highest number of IPOs as well as the level of Canadian market and listing directly in US exchanges, and highlights the investment, with 4 IPOs totaling $9.2B for the year. need for participation from large banks and investment firms to finance and support growing Canadian deals.

$ Millions Invested # Deals CLOSE SELLERS COMPANY BUYER $ MIL DATE $10,000 50

9,234 DCVC BIO, VIKING GLOBAL INVESTORS,

$ PRESIGHT CAPITAL, STRATEGIC CORPORATE ABCELLERA IPO ON NASDAQ 2020-12-07 $6,753 $9,000 45 INVESTORS, ANGEL INVESTORS FONDS DE SOLIDARITÉ FTQ, VERSANT $8,000 39 40 VENTURES, COWEN HEALTHCARE 36 INVESTMENTS, ORBIMED, REDMILE, BVF REPARE THERAPEUTICS IPO ON NASDAQ 2020-06-19 $1,522 PARTNERS, LOGOS CAPITAL, MPM CAPITAL, $7,000 33 35 AMPLITUDE VENTURES FACIT, GENESYS CAPITAL MANAGEMENT $6,000 32 31 30 INC. VARIAN MEDICAL SYSTEMS, ORBIMED, PERCEPTIVE ADVISORS, PIVOTAL BIOVENTURE PARTNERS, ROCK SPRINGS FUSION PHARMACEUTICALS IPO ON NASDAQ 2020-06-22 $959 $5,000 25 CAPITAL, ADAMS STREET PARTNERS, HEALTHCAP, JJDC, SEROBA LIFE SCIENCES, $4,000 20 TPG BIOTECH

$3,000 15 INOVIA CAPITAL NORTH INC. GOOGLE 2020-06-30 $180 2,150 $ 1,600 1,429

$2,000 $ 10 $ 1,065 1,033 $ $ SAMSUNG VENTURE INVESTMENT 702

584 MOBEEWAVE APPLE 2020-08-04 $134

$ 4 CORPORATION $1,000 $ 3 3 5 0 0 $0 0 VISTARA CAPITAL PARTNERS, KAYNE CAPITAL PARTNERS, TIME WARNER INVESTMENTS, YOU.I TV WARNERMEDIA 2020-12-21 $128 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 MARS INVESTMENT ACCELERATOR FUND

M&A* IPO/RTO** FIRST ASCENT VENTURES RUBIKLOUD KINAXIS 2020-06-30 $78

22 | VC EXITS * There were 20 undisclosed VC Exits totaling $21 million in 2020 TOP DISCLOSED VC EXITS | 23 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW

MOST ACTIVE PENSION, RETAIL, CORPORATE SIZE OF TOTAL ROUNDS* # ROUNDS & OTHER PUBLIC FUNDS (CDN$ MIL) MOST ACTIVE DESJARDINS CAPITAL 26 $167 FONDS DE SOLIDARITÉ FTQ 10 $231 VC FIRMS & FUNDS TELUS VENTURES 7 $245 FONDS INNOVEXPORT 6 $63

PFM CAPITAL 6 $16 # Rounds Size of Total Rounds* ($M) CAISSE DE DEPOT ET PLACEMENT DU QUEBEC 5 $260 BDC Capital 111 $910 OMERS VENTURES 5 $218 Real Ventures 30 $119 Desjardins Capital 26 $167 CONEXUS VENTURE CAPITAL 5 $35 MaRS Investment Accelerator Fund 26 $61 GREENSOIL INVESTMENTS 4 $43

Round13 Capital 21 $144 NATIONAL BANK OF CANADA 3 $6 Investissement Quebec 20 $314 Inovia Capital 18 $704 SIZE OF TOTAL ROUNDS* MOST ACTIVE GOVERNMENT FUNDS # ROUNDS Panache Ventures 17 $134 (CDN$ MIL) Export Development Canada 15 $110 BDC CAPITAL 111 $910

New Brunswick Innovation Foundation 15 $7 MARS INVESTMENT ACCELERATOR FUND 26 $61

INVESTISSEMENT QUEBEC 20 $314

BDC INDUSTRIAL, CLEAN AND ENERGY TECHNOLOGY 15 $163 VENTURE FUND SIZE OF TOTAL ROUNDS* MOST ACTIVE PRIVATE INDEPENDENT FIRMS # ROUNDS (CDN$ MIL) EXPORT DEVELOPMENT CANADA 15 $110 REAL VENTURES 30 $119 NEW BRUNSWICK INNOVATION FOUNDATION 15 $7

ROUND13 CAPITAL 21 $144 BDC IT VENTURE FUND 12 $379

INOVIA CAPITAL 18 $704 INNOVACORP 8 $8

PANACHE VENTURES 17 $134 SIZE OF TOTAL ROUNDS* MOST ACTIVE FIRMS IN VC DEBT DEALS # ROUNDS BLUESKY EQUITY LTD. 13 $30 (CDN$ MIL) CIBC INNOVATION BANKING 17 $146 CYCLE CAPITAL 10 $70 VENBRIDGE LTD. 13 $3 ACCELERATE FUND 10 $15 ESPRESSO CAPITAL 8 $16 BRIGHTSPARK VENTURES 9 $40 DESJARDINS CAPITAL 7 $14 RELAY VENTURES 9 $36 FONDS DE SOLIDARITÉ FTQ 4 $37

MISTRAL VENTURE PARTNERS 8 $191 TIMIA CAPITAL 3 $7

24 | MOST ACTIVE FIRMS & FUNDS MOST ACTIVE FIRMS & FUNDS | 25 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW

EUROPE Size of Total Number FOREIGN VCs Investor Rounds of Deals ($M) GLOBAL FOUNDERS 2 $9 in canada CAPITAL

UNITED STATES WEST Size of Total Number Investor State Rounds of Deals ($M) HIKE VENTURES CA 5 $11 AZURE CAPITAL CA 4 $14 PARTNERS PLUG & PLAY VENTURES CA 3 $133 ASIA CA 3 $26 Size of Total Number Investor Rounds VERSANT VENTURES CA 2 $224 of Deals ($M) EAST VERTEX VENTURES 2 $44 Size of Total Number Investor State Rounds of Deals ($M) ORBIMED ADVISORS NY 3 $368 WHITE STAR CAPITAL INC. NY 3 $87 ROCK SPRINGS CAPITAL MD 2 $224 MANAGEMENT DRIVE CAPITAL OH 2 $123

MIDDLE EAST Size of Total Number Investor Rounds of Deals ($M) ALTAIR CAPITAL 2 $45

26 FOREIGN VCs IN CANADA | 27 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW

CVCA MEMBERS QUEBEC BY AUM Investor AUM FONDS DE SOLIDARITÉ FTQ $1B AND ABOVE

BDC CAPITAL $1B AND ABOVE

CAISSE DE DÉPÔT ET $1B AND ABOVE PLACEMENT DU QUÉBEC

BRITISH COLUMBIA INOVIA CAPITAL INC. $1B AND ABOVE

CYCLE CAPITAL Investor AUM $501M TO $1B MANAGEMENT

PANGAEA VENTURES $101M TO $250M REAL VENTURES $251M TO $500M

VERSION ONE VENTURES $101M TO $250M CTI LIFE SCIENCES $101M TO $250M

YALETOWN PARTNERS INC. $101M TO $250M

PRARIES

Investor AUM

WESTCAP MGT. LTD. $501M TO $1B

CONEXUS VENTURE $26M TO $100M CAPITAL ONTARIO ATLANTIC

RED LEAF CAPITAL 0 TO $25M Investor AUM Investor AUM

RELAY VENTURES $501M TO $1B ISLAND CAPITAL PARTNERS 0 TO $25M

ROUND 13 CAPITAL $501M TO $1B

LUMIRA VENTURES $251M TO $500M

PORTAG3 VENTURES $251M TO $500M

RADICAL VENTURES $251M TO $500M If your firm would like to be included in this list for the 2021 VC report, please email [email protected]

28 CVCA MEMBERS BY AUM | 29 CVCA | CANADIAN VENTURE CAPITAL MARKET OVERVIEW | 2020 YEAR IN REVIEW

Total Number of Rank Company Founded Industry Headquarters Funding* Employees

ST. JOHN'S, 1 VERAFIN 2003 $515M 548 FINTECH NEWFOUNDLAND AND LABRADOR 2 ENERKEM 2007 $464M 237 CLEANTECH MONTRÉAL, QUÉBEC BURNABY, BRITISH CLIO 2011 $352M 552 LEGAL TECH 3 COLUMBIA 4 ELEMENTAI 2008 $341M 90 AI MONTRÉAL, QUÉBEC 5 HOPPER 2014 $325M 376 TRAVEL MONTRÉAL, QUEBEC 6 LIGHTSPEED POS 2005 $324M 1260 FINTECH MONTRÉAL, QUÉBEC 7 COVEO 2005 $282M 614 AI QUÉBEC CITY, QUÉBEC TOP 25 1PASSWORD 2014 $265M 310 ICT TORONTO, ONTARIO 8 9 TOUCHBISTRO 2011 $256M 442 FINTECH TORONTO, ONTARIO venture-backed 10 APPLYBOARD 2015 $242M 667 EDTECH KITCHENER, ONTARIO VANCOUVER, BRITISH HOOTSUITE 2008 $238M 1477 ICT companies by 11 COLUMBIA MILESTONE BIOTECH & 2003 $227M 37 MONTRÉAL, QUÉBEC 12 PHARMACEUTICALS PHARMA total funds raised 13 WEALTHSIMPLE 2014 $227M 561 FINTECH TORONTO, ONTARIO CHINOOK VANCOUVER, BRITISH 2013 $226M 101 BIOTECH These are CVCA’s Top 25 venture-backed companies by the 14 THERAPEUTICS COLUMBIA amount of funds raised as of Q4 2020. Collectively, these 25 15 CLEARBANC 2015 $226M 273 FINTECH TORONTO, ONTARIO companies have raised $6.2B in total funding and support FUSION BIOTECH & 2017 $225M 63 HAMILTON, ONTARIO 9,539 jobs in Canada. These companies are on track to become 16 PHARMACEUTICALS PHARMA Canada’s next Unicorns (valuation of $1B+) following the REPARE BIOTECH & 17 2016 $200M 95 MONTRÉAL, QUÉBEC footsteps of Shopify, Kik, and Lightspeed POS. THERAPEUTICS PHARMA DALCOR BIOTECH & 2015 $195M 12 MONTRÉAL, QUÉBEC 18 PHARMACEUTICALS PHARMA 19 ECOBEE 2007 $172M 480 IOT TORONTO, ONTARIO HEALTH ALAYA CARE 2014 $172M 371 MONTRÉAL, QUÉBEC 20 TECH 21 REAL MATTERS 2004 $158M 47 REAL ESTATE MARKHAM, ONTARIO TECH 22 VENA SOLUTIONS 2011 $148M 443 FINTECH TORONTO, ONTARIO 23 BREATHER 2012 $147M 68 REAL ESTATE MONTRÉAL, QUÉBEC TECH 24 MIOVISION 2005 $147M 243 AI KITCHENER, ONTARIO TECHNOLOGIES 25 LEDDARTECH 2007 $144M 172 AUTONOMOUS QUEBEC CITY, QUÉBEC VEHICLES

30 *Total funding amount based on disclosed investments TOP 25 VENTURE-BACKED COMPANIES BY TOTAL FUNDS RAISED | 31 PARTICIPATING PRIVATE EQUITY & LSVCC FIRMS AIP Private Capital Capital Financière Agricole Lex Capital Management Seafort Capital

ARC Financial Crédit Mutuel Equity m2s Capital DATA CONTRIBUTORS Partners Ardenton Capital Clearspring Capital Mink Capital Corporation Partners TIMIA Capital Corp MKB & Co ATB Capital First West Capital Tricor Pacific Capital Ltd. CVCA thanks the following firms who participated in its Q4 2020 survey. Mosaic Capital Corporation BDC Growth Equity Founders Group of Food TriWest Capital Partners Companies Inc. Novacap Management Inc. BDC Growth & Transition Westcap Mgt. Ltd Capital Fulcrum Capital Partners PenderFund Capital VENTURE CAPITAL FIRMS Management Western Investment Birch Hill Equity Partners Highland West Capital Company of Canada Persistence Capital Limited 7 Gate Ventures EnerTech Capital Klass Capital Ripple Ventures BMO Capital Partners InstarAGF Asset Partners Management XPND Capital AmorChem Fund Espresso Capital Ltd. Luge Capital Roadmap Capital Capital PFM Capital Inc Ironbridge Equity Partners Amplify Capital Evok Innovations Lumira Ventures Round 13 Capital CAI Capital Partners PRIVEQ Capital Funds Kayne Capital Amplitude Ventures Fastbreak Ventures MaRS IAF ScaleUP Ventures Canadian Business Growth Regimen Equity Partners Fund Killick Capital Inc. Anges Quebec Ferst Capital McRock Capital Tactico Inc.

Anges Quebec Capital FACIT Mistral VP Tandem Expansion AVAC Ltd. First Ascent Ventures NAventures TandemLaunch LIMITED PARTNERS Aventrock Ventures Fonds Innovexport New Brunswick Innovation TELUS Ventures Foundation Alberta Enterprise Corporation Fondaction Kensington Capital Partners Ltd. Framework Ventures Top Renergy Panache Ventures Alberta Teachers’ Retirement Fund Fonds de solidarité FTQ Northleaf Capital Partners BCF Ventures Freycinet Ventures Trellis Capital (ATRF) Pangaea Ventures Fonds de solidarité FTQ (Regional) Ontario Capital Growth Corporation Brightspark Ventures Georgian Partners V3-Ventures BDC Venture Capital Plank Ventures HarbourVest Partners (Canada) Ltd Ontario Teachers’ Pension Plan (OTPP) CIBC Innovation Banking Good News Ventures Valhalla Angels Bluesky Equities Portag3 Ventures Investissement Quebec Teralys Capital CIC Capital Ventures Hike Ventures Vanedge Capital Desjardins Capital Quark Venture Partners Clanton Capital Inc. Information Venture Partners Real Ventures Version One Ventures Conexus Venture Capital Innovacorp Relay Ventures White Star Capital CTI Life Sciences If you would like to have your firm included in future reports, inovia Capital Renewal Funds Cycle Capital Management please click here. Island Capital Partners Rhino Ventures Disruption Ventures

32 PARTICIPATING DATA CONTRIBUTORS | 33 CVCA METHODOLOGY: VENTURE CAPITAL VENTURE CAPITAL DATA: AUTHORS Verified completed equity, quasi-equity venture capital and venture debt deals only (non-equity or project-based government funding, pharmaceutical development deals, venture capital-backed acquisitions, and angel financing are not included). All figures are in CAD unless otherwise specified. Christiane Wherry VICE PRESIDENT, RESEARCH VC DEVELOPMENT STAGES [email protected]

VENTURE DEBT SHORT-TO-MEDIUM TERM, NON-DILUTIVE DEBT INSTRUMENT WITH NO EQUITY RIDER.

COMPANY HAS A CONCEPT OR PRODUCT UNDER DEVELOPMENT, BUT IS PROBABLY NOT SEED STAGE FULLY OPERATIONAL. David kornacki MANAGER, RESEARCH & PRODUCT COMPANY HAS A PRODUCT OR SERVICE IN TESTING OR PILOT PRODUCTION. IN SOME EARLY STAGE CASES, THE PRODUCT MAY BE COMMERCIALLY AVAILABLE. [email protected]

PRODUCT OR SERVICE IN PRODUCTION AND COMMERCIALLY AVAILABLE. COMPANY IS LATER STAGE GENERATING ON-GOING REVENUE, BUT NOT NECESSARILY, PROFITABLE.

SIGNIFICANT MINORITY INVESTMENT TO DRIVE GROWTH AND SCALE WHICH CAN BE JON JACKSON GROWTH COMBINED WITH A SECONDARY TRANSACTION TO FACILITATE LIQUIDITY FOR EXISTING HEAD OF COMMUNICATIONS VC INVESTORS [email protected]

VC SECTORS

COMPUTER HARDWARE AND SOFTWARE AND SERVICES, INTERNET SOFTWARE OR IZADELLA STA. ROMANA ICT SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE AND TELECOM MARKETING & BRAND COORDINATOR TECHNOLOGIES AND SERVICES. [email protected] BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND LIFE SCIENCES SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES.

ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, CLEANTECH ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES.

AGRIBUSINESS TRADITIONAL AND ADVANCED AGRICULTURAL TECHNOLOGIES AND SERVICES

34 | CVCA METHODOLOGY: VENTURE CAPITAL cvca.ca