Earlier this week, Nate Glubish, Alberta’s minister of technology and innovation, published a media release on the government’s website as a response to Canadian Venture Capital and Private Equity Association’s recently released report on venture capital investments in Canada during the second quarter of 2023.
There are a couple of things Glubish left out in his media release that I thought I’d share here.
Venture capital investments in Alberta in the second quarter of 2023 saw 24 deals worth $208 million. This represents an 18% increase in deal size over the same period last year, while the whole of Canada saw a 28% decrease.
Well, let’s compare the two, shall we? First the second quarter of 2022.
| # of deals | Total value* | Value per deal | |
|---|---|---|---|
| NL | 4 | $11 | $2.75 |
| PEI | 1 | $3 | $3.00 |
| NS | 11 | $78 | $7.09 |
| NB | 6 | $23 | $3.83 |
| QC | 64 | $1,700 | $26.56 |
| ON | 158 | $3,000 | $18.99 |
| MB | 2 | $1 | $0.50 |
| SK | 11 | $119 | $10.82 |
| AB | 56 | $481 | $8.59 |
| BC | 58 | $807 | $13.91 |
And now the second quarter of 2023.
| # of deals | Total value* | Value per deal | |
|---|---|---|---|
| NL | 3 | $7 | $2.33 |
| PEI | 1 | $4 | $4.00 |
| NS | 10 | $47 | $4.70 |
| NB | 6 | $15 | $2.50 |
| QC | 67 | $841 | $12.55 |
| ON | 133 | $1,980 | $14.89 |
| MB | 4 | $45 | $11.25 |
| SK | 13 | $17 | $1.31 |
| AB | 40 | $406 | $10.15 |
| BC | 58 | $741 | $12.78 |
Now, here’s a look at the change between the two second quarters:
| Deals | % change | Total value* | % change | Value per deal | % change | |
|---|---|---|---|---|---|---|
| NL | 3 | 300.00% | -$4 | -36.36% | -$0.42 | -15.15% |
| PEI | 0 | 0.00% | $1 | 33.33% | $1.00 | 33.33% |
| NS | 3 | 42.86% | -$31 | -39.74% | -$2.39 | -33.72% |
| NB | 1 | 20.00% | -$8 | -34.78% | -$1.33 | -34.78% |
| QC | 35 | 109.38% | -$859 | -50.53% | -$14.01 | -52.74% |
| ON | 75 | 129.31% | -$1,020 | -34.00% | -$4.10 | -21.59% |
| MB | 1 | 33.33% | $44 | 4400.00% | $10.75 | 2150.00% |
| SK | 4 | 44.44% | -$102 | -85.71% | -$9.51 | -87.91% |
| AB | 24 | 150.00% | -$75 | -15.59% | $1.56 | 18.17% |
| BC | 36 | 163.64% | -$66 | -8.18% | -$1.14 | -8.18% |
Sure enough, the average value per venture capital deal did, in fact, increase by 18.17% between the second quarter of 2022 and the second quarter of 2023.
It’s also true, that the country as a whole saw a drop in venture capital investments. However, of the 3 provinces that saw an increase in the value per deal, Alberta’s average saw the lowest increase.
As well, the total value of all deals during this period actually declined by $75 million in Alberta, bumping it down to fourth place. among all provinces.
Our actions are producing amazing results. Alberta is now capturing 11.9 per cent of Canada’s venture capital deals. We have positioned our province to be the next tech hub of North America and we will continue to work around the clock to ensure we reach that goal.
This is sort of true. Alberta’s 40 deals in the second quarter of 2023 account for 11.9% of the 335 deals across the country, which isn’t that surprising, given that Alberta makes up 11.8% of the national population.
However, the total value of Alberta’s venture capital investments in the second quarter of 2023 came in at $406 million, which was only 9.9% of the total $4.103 billion in venture capital investments across Canada.
In the second quarter of 2023, we saw a steady stream of investments of more than $10 million and if this continues, Alberta will be on track for yet another record-breaking year.
This is true. Alberta’s average second quarter 2023 deal value was $10.15 million. But this is less than the national average of $12.25 million. Probably because it’s average value was only the 5th highest amongst all the provinces.
It’s weird to think that Alberta being in 5th place means it’s on track for a record-breaking year.
Especially when you consider that the first quarter average investment value was $12.38 million, which means that our per deal value actually declined by $2.23 million between the first and second quarter.
How can you be on track for a record-breaking year when your per deal value has dropped?
