May 10, 2022
Despite the crash in technology stocks, numbers for Canadian tech companies are looking relatively promising; according to an article in The Globe and Mail, 2022 already ranks as the second biggest year for $100 million deals in Canada, after 2021.
In the article, Sean Silcoff writes that the latest deal by Montréal-based technology company Vention Inc. is indicative of the continuing demand for investment in quality tech companies in the private market. Vention aims to expedite factory automation, creating innovative and intuitive designs for test benches, robot work stations, assembly lines, and more. Led by Toronto-based private growth equity firm Georgian Partners, Vention recently announced that it had raised US$95 million. An influx in additional investors indicates that the company is now valued at over $1 billion.
However, private markets are still expected to slow down this year. Deals are taking longer due to diverging expectations between investors and entrepreneurs regarding monetary value of companies. Chad Bayne, co-chair of Osler’s Emerging and High Growth Companies Group, is quoted in the article saying, “rounds are getting done [but] it’s definitely not as robust as last year. A lot of venture investors are taking a wait-and-see approach.”
If you subscribe to The Globe and Mail online, you can read Sean Silcoff’s full article, “Vention latest Canadian technology company to raise $100-million despite rapidly cooling market.”