The Globe and Mail reports in its Thursday edition that venture-capital financing in Canada fell to prepandemic levels in the second quarter this year as the tech downturn hit privately held companies, says the Canadian Venture Capital and Private Equity Association.
The Globe's Josh O'Kane writes that the CVCA said Thursday that there was $1.65-billion in venture capital employed across 182 deals in the second quarter of 2022. It was the lowest quarter since the pandemic prompted a flood of cash into digital-services companies, down 67 per cent from $5.1-billion in the same quarter in 2021. The downturn's true impact will be more starkly revealed in the coming quarters as data catches up with the gap between when deals are first negotiated, closed and then announced. The public-market pullback was a shock for later-stage companies that might hope to tap into public markets. The CVCA did not record a single initial public offering last quarter.
After numerous massive deals in the first quarter, the biggest deals last quarter were much smaller. They included $185-million for Neo Financial Technologies, $101-million for Sheertex Holdings, $100-million for Ventus Therapeutics and $100-million for Tailscale.
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