VC funding falls again in Q2 for Canadian firms

Venture Funding Valley

2009-08-12, 06:12

In a recent press release the Canadian Venture Capital Association in what appears to be another volley of concern to the federal government has again chronicled the precipitous fall in investment levels in Canada in the second quarter.

Q2 2009 saw the lowest per quarter result in 14 years. Domestic venture activity at the end of the first six months was also well below historical par. To date in 2009, $452 million has been invested, or 33% less than the $676 million invested between January and June in 2008, and the weakest first half showing in 13 years.

CVCA

CVCA outlined the sad tale of the dwindling investments that companies are experiencing this year. We wish the news was better but it is not!

Street cred

Furthermore it is reflected in the discussion we’ve had with a number of small companies trying to get a foothold in a turbulent market. The CVCA had a number of good suggestions for both the Federal and Provincial Governments and hopefully someone there will actually be listening.

Required reading

For more detailed information there is an interesting document that was presented at the CVCA 2009-05-28 conference comparing venture funding worldwide, an interesting read.

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