People Mentioned
Partner, Emerging and High Growth Companies, Calgary
Partner, Emerging and High Growth Companies, Toronto
2024 was the “year of the mega deal,” according to Osler’s fourth annual Deal Points Report: Venture Capital Financings, with almost two thirds of invested capital covered in the report going toward transactions larger than $50 million. One factor driving this trend was a return of late-stage investors to more established, revenue-generating companies.
Among the largest deals last year were Clio’s US$900-million Series F round and Cohere’s US$500-million Series D round.
Michael Grantmyre, a partner in Osler’s Emerging and High Growth Companies group and a co-author of the report, tells Canadian Lawyer that these results challenge a common belief among Canadian founders that they should base their startups in the United States instead.
“You can create global businesses in Canada, get all the benefits that follow, and create jobs here… Canada is really maturing as far as the technology ecosystem goes,” he says.
While elevated interest rates affected last year’s venture financing environment, investors so far this year are facing geopolitical uncertainties, especially around trade and tariffs, that make valuations even more challenging.
Ryan Unruch, another EHG partner and co-author of the report, says that early-stage funding activity is still strong despite the new conditions.
Partly due to the increased presence of American investors in the Canadian venture capital ecosystem, he adds, the local landscape is beginning maturing alongside that of Silicon Valley in terms of company valuations and deal-making practices.
“We are converging over time, and I think that trend will continue.”
You can read the full article, “‘Mega deals’ return as Canadian VC market stabilizes in 2024: Osler report,” on the Canadian Lawyer website.
People Mentioned
Partner, Emerging and High Growth Companies, Calgary
Partner, Emerging and High Growth Companies, Toronto
