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Canada's Technology Sector has Record Year for Venture Capital Funding

October 1, 2021


Record-breaking venture capital funding levels for Canada’s technology sector indicate that Canada’s tech markets are maturing, bringing them closer to U.S. startup valuations than ever. As of Wednesday September 29th, it is estimated a total of $10.92 billion has been raised in venture capital in 2021 by 427 companies. This impressive number surpasses the previous record of $7.57 billion in 2019, as well as an inflation-corrected record of $10 billion from 2000.

An increase in the average size of deals and the number of $100 million-plus rounds have both contributed to the venture capital record. It is also important not to overlook the backdrop against which this record stands. Though this upward trend of investing was already underway in Canada, the COVID-19 pandemic has undoubtedly been an accelerant that increased funding to tech spaces. Elevated demand for tech solutions has allowed more ventures to gain visibility, and with higher investments. As investors become more comfortable investing remotely, the opportunities for hubs in Canada will continue to grow post-pandemic.

Though concerns do exist regarding the possibility of over-valuations, or that the market is currently operating in a bubble (as was seen in the early 2000s), the landscape has changed substantively since then. With growing demand in virtually every sector, and permanent integration of smartphones and social media, technology is increasingly relied upon and has fundamentally changed how businesses succeed.

By: Em Windrim


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