In 2007, Canadian public technology companies raised a record amount of $3.83 billion, an increase of 52% over the previous year’s amount of $2.52 billion. The dramatic increase was primarily driven by an increase in average deal size, up from $5.3 million in 2006 to $8.8 million in 2007. 433 deals were completed in 2007 comparing to 499 deals in 2006.

Ontario Tech Companies Attract Lion's Share of All Capital

In 2007, Ontario based tech companies raised $1.76 billion or 46% of the total amount raised, recovering from a low of 26% in 2005. Ontario based tech companies have been the top destination in absolute amount of money raised, with the exception of 2005 when Alberta based tech companies briefly overtook Ontario based companies. In 2005, Alberta based companies raised $732 million comparing to $630 million raised by Ontario based companies. Two deals completed by Canadian Hydro Developers, Inc. (TSX: KHD) in 2005 accounted for 40% of all money raised by Alberta based companies.

Quebec based companies raised $729 million in 2007. The capital raised by Quebec based companies remained relatively stable in the last two years, but its share of the total amount had not kept pace with dramatic rise in total capital raised, plunging from 30% in 2006 to 19% in 2007.

BC based companies raised $791 million, overtaking Quebec as the second largest destination of public financings.

IT Overtakes Life Sciences

In 2007, IT sector raised $1.54 billion, becoming the top destination and overtaking Life Science for the first time since 2005. Life Sciences companies received $1.34 billion in total. With exception of 2004 and 2006, Life Sciences sector has been the top capital destination since 2003. In the last five years, Life Sciences companies raised $5.6 billion in aggregate, comparing to $4.9 billion raised by IT companies.

Software, Electronics, Wireless Systems, Geomatics/Telematics/Spatial, and Semiconductor were the top 5 IT sub-sectors, receiving 230 million (15%), 171 million (11%), 157 million (10%), 152 million (10%) and 148 million (10%) respectively.

Biotechnology, Biopharmaceuticals, Medical Devices, and Biopharma Services were the top three Life Sciences sub-sectors, raising $803 million (60%), $232 million (17%), and $175 million (13%) respectively.

PIPE Financings Less Prominent

In 2007, tech companies raised $257 million in PIPE financings or approximately 7% of the total amount, comparing to $331 million or 13% in 2006.

Detailed stats is available under: Statistics