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Deal activity adjusting to current market conditions: April 2022 webinar

Author(s): Chad Bayne, Mark Longo, Michael Grantmyre

Apr 5, 2022

With difficult market conditions during the first quarter of 2022, deal activity was similar to the early months of the pandemic when companies raised capital based on convertible securities to bridge them until better times. This was one of several trends discussed during a webinar presented by Osler’s Emerging and High Growth Companies Group following the publication of their first comprehensive study of more than 300 Canadian venture capital and growth equity financings. The event was hosted by Michael Grantmyre, partner in Osler’s Emerging and High Growth Companies Calgary office, along with Chad Bayne, partner and co-chair from the Toronto office, and Mark Longo, partner and co-chair in the Vancouver office.

The presenters also said companies that raised capital over the past couple of years are being disciplined in how they spend. Their boards are taking steps to ensure that their capital lasts and that their burn is at a reasonable level. The goal of these companies is to extend their runways so they are leveraged in the future to raise capital on their own terms.

While the Osler study shows growth in the representation of women founded companies at the seed financing stage between 2019 and 2021, there are still few women in executive positions such as chief technology officer or heads of product and engineering. It is expected that progress in this area will take time as more women are mentored or are encouraged to enroll in studies that will lead to these positions.

The study shows companies for Canadian financings concentrated largely in Ontario and British Columbia, but the report authors see the Prairie provinces as being poised for future growth opportunities. Cities with growing populations and excellent universities with a technical bent in these provinces are creating an environment for building and growing companies.

Read the Deal Points Report: Venture Capital Financings.

View the webinar: Deal Points Report: Venture Capital Financings