VC & PE QUÉBEC MARKET OVERVIEW // 2017

Transcription

1 VC & PE QUÉBEC MARKET OVERVIEW // 2017 NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL S HISTORICAL REPORTS.

2 CONTENTS PARTICIPATING DATA CONTRIBUTORS... 3 FOREWORD... 4 VC & PE ACTIVITY... 5 VC & PE ACTIVITY BY ADMINISTRATIVE CENTRE... 6 VENTURE CAPITAL QUÉBEC MARKET OVERVIEW... 7 QUÉBEC VENTURE CAPITAL HIGHLIGHTS... 8 VENTURE CAPITAL HEAT MAP... 9 QUARTER-OVER-QUARTER VC INVESTMENT IN QUÉBEC VC ACTIVITY BY DEAL SIZE VC SECTOR BREAKDOWN...12 VC STAGE BREAKDOWN TOP 10 DISCLOSED QUÉBEC VC DEALS TOP DISCLOSED VC EXITS MOST ACTIVE FIRMS IN QUÉBEC PRIVATE EQUITY QUÉBEC MARKET OVERVIEW QUÉBEC PRIVATE EQUITY HIGHLIGHTS PRIVATE EQUITY HEAT MAP QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY IN QUÉBEC PE ACTIVITY BY DEAL SIZE PE SECTOR BREAKDOWN TOP 10 DISCLOSED QUÉBEC PE DEALS TOP DISCLOSED PE EXITS IN QUÉBEC MOST ACTIVE PE INVESTORS IN QUÉBEC CVCA METHODOLOGY VENTURE CAPITAL PRIVATE EQUITY... 27, 28 CVCA/RÉSEAU CAPITAL ABOUT & CONTACT VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

3 PARTICIPATING DATA CONTRIBUTORS If you would like to have your firm included in future reports, please contact either or CVCA thanks the following firms who participated in its Q survey. PARTICIPATING LIMITED PARTNERS Alberta Enterprise Corporation Alberta Teachers Retirement Fund (ATRF) BDC Capital Inc Caisse de dépôt et placement du Québec (CDPQ) Capital Régional et Coopératif Desjardins Dancap Private Equity Inc Fondaction CSN Fonds de solidarité FTQ Fonds de solidarité FTQ (Regional) HarbourVest Partners, LLC Investissement Quebec Kensington Capital Partners Limited Northleaf Capital Partners Ontario Teachers Pension Plan (OTPP) Teralys Capital PARTICIPATING PRIVATE EQUITY & LSVCC FIRMS 32 Degrees Capital AIP Private Capital Altas Partners LP Arc Financial Ardenton Capital Corporation ATB Capital Birch Hill Equity Partners Brookfield Asset Management CIEL Capital Clairvest Group Inc. First West Capital Fulcrum Capital Partners GrowthWorks Atlantic Venture Fund Ltd. Growthworks Working Opportunity Fund (EVCC) Ltd. Highland West Capital Innovation Platform Capital InstarAGF Asset Management Ironbridge Equity Partners Lex Capital Management m2s Capital Mink Capital Mosaic Capital Corporation Novacap Management Inc. Parallel 49 Equity Persistence Capital Partners PFM Capital Inc Pillarfour Capital PRIVEQ Capital Funds Regimen Equity Partners Roynat Capital Inc. Searchlight Capital Partners TIMIA Capital Corp Tricor Pacific Founders Capital TriWest Capital Partners VERTU Capital Westcap Mgt. Ltd Western Investment Company of Canada Limited XPND Capital PARTICIPATING VENTURE CAPITAL FIRMS Amorchem Venture Fund McRock Capital Anges Quebec New Brunswick Innovation Foundation Anges Quebec Capital Northumberland CFDC Avrio Ventures Management Corp OMERS Ventures Azure Capital Partners Pangaea Ventures Brightspark Ventures Pelorus Venture Capital Ltd. CTI Life Sciences Plaza Ventures Cycle Capital Management/Ecofuel Quark Venture Difference Capital Real Ventures Emerald Technology Ventures Relay Ventures Emerillon Capital Renewal Funds EnerTech Capital Roadmap Capital Espresso Capital Ltd. Ryerson Futures Eventi Capital Partners ScaleUP Ventures Evok Innovations Tandem Expansion Fight Against Cancer Innovation Trust TandemLaunch Freycinet Ventures TEC Venture Angels Georgian Partners Top Renergy Golden Venture Partners TVM Life Science Management Inc. Good News Ventures Vancity Capital Corp Green Acre Capital Vancouver Founders Fund GreenSoil Investments Vanedge Capital Partners igan Partners VentureLink Funds Information Venture Partners Versant Ventures Innovacorp Version One Ventures inovia Capital Wellington Financial Investeco Capital Corp White Star Capital Lumira Capital Whitecap Venture Partners MaRS Catalyst Fund Yaletown MaRS IAF VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

4 FOREWORD 2017 VC & PE Québec Market Overview: VC Mega Deals Drive VC Investment Year-Over-Year Spike; PE Investment Doubles In Q4 Québec captures 30% of all Canadian VC deals in 2017; Leads the country in private equity investment Québec venture capital continued its impressive trajectory in 2017 capturing 30% of the total number of Canadian VC deals (180 out of 592) and 37% of dollars invested ($1.3B out of $3.5B). Québec private equity captured 55% of all PE deals (330 out of 603) with $10.7B invested in Québec-based companies in Six $50M+ mega deals totaling $691M accounted for 52% of total VC dollars invested in Québec. Three of the $100M+ deals included the $207M Series D in Montréal-based Lightspeed POS Incorporated from a syndicate including Caisse de dépôt et placement du Québec (CDPQ), Investissement Québec, inovia Capital and Teralys Capital; the $141M in Montréal-based Element AI with participation from Real Ventures; and, the $128M Series C in Québec City-based LeddarTech with help from Fonds de solidarité FTQ. Information communications technology companies received $860M, a 65% share of total VC dollars invested in the province; up 19% since Life science companies received $326M, a 25% share of VC investment. Agribusiness continued its upward trajectory in Québec with $70M invested over 14 deals; a steady increase from 2013 when only $7M was invested over 5 deals. Venture capital continues to indicate a high level of trust in the Québec economy, says Réseau Capital CEO, Jack Chadirdjian year-end data confirms investors are attracted to Québec companies. Two $1B+ mega-deals amounted to $3.3B or 31% of total PE dollars invested in the province. This included a private placement in Osisko Gold Royalties Limited by Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ. Industrial and manufacturing companies received the largest share of PE investment in Québec at 26% of all deals, while consumer and retail companies received 15%. Québec private equity investment continues to lead the country, says Chadirdjian. The private capital data proves the province continues to be a great place to invest. VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

5 VC & PE ACTIVITY // 2017 Private Equity Venture Capital 330 deals 180 deals $1.3b $10.7b total # 510 deals total invested $12b VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

6 VC & PE ACTIVITY BY ADMINISTRATIVE CENTRE // 2017 Nord-du-Québec / Abitibi-Témiscamingue Saguenay-Lac-St-Jean / Côte-Nord Gaspésie/ Îles-de-la-Madeleine Bas-Saint-Laurent 8 Laurentides Mauricie Québec Outaouais Laval Lanaudière Centre-du- Québec 3 15 Chaudière- Appalaches 1 Venture Capital Private Equity 15 Montréal Montérégie Estrie 11 total # montréal most active region 220 DEALS VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

7 VENTURE CAPITAL QUÉBEC MARKET OVERVIEW // 2017 NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL S HISTORICAL REPORTS. VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

8 QUÉBEC VENTURE CAPITAL HIGHLIGHTS // 2017 Key Findings: Q HIGHLIGHTS: $218M was invested over 51 deals in Q4 in Québec, 7% more than the amount invested in the same quarter last year ($203M). The average deal size dropped to $4.3M down 31% from the same quarter last year HIGHLIGHTS: Six $50M+ mega-deals totaling $691M accounted for 52% of total dollars invested. This included three $100M+ deals: Montréal-based Lightspeed POS Inc. raised a record $207M Series D round from a syndicate including Caisse de dépôt et placement du Québec (CDPQ), Investissement Québec, inovia Capital Inc. and Teralys Capital. Real Ventures participated in Montréal-based Element AI s $141M Series A round. Québec-based LeddarTech closed its $128M series C round from Fonds de solidarité FTQ. Québec captured 30% of the total number of Canadian VC deals (180 out of 592) and 37% of dollars invested ($1.3B out of $3.5B). 38% of VC activity in the province was in deal sizes between $1M-$5M, followed by deals between $100K-$500K capturing a 22% share and deals between $5-$20M a 12% share. ICT companies received $860M, a 65% share of total dollars, up 19% from its 2016 share. Life sciences companies received $326M or 25% of total dollars, down 7% from its 2016 share. Although a much smaller industry segment, VC investment in agribusiness companies continued its upward trajectory with $70M invested over 14 deals. This has been steadily rising from 2013 when only $7M was invested over 5 deals. 73% of all VC deals in the province were in Montrealbased companies. Notable exits included the $392M Airbnb acquisition of Montreal-based Luxury Retreats, the $174M IPO of Montrealbased Clementia Pharmaceuticals Inc. and the $133M acquisition of Accedian Networks by Bridge Growth Partners. VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

9 VENTURE CAPITAL HEAT MAP // 2017 total $3.5b total # 592 deals $6M Newfoundland & Labrador $646M BC $37M Alberta 10 $14M Saskatchewan $5M Manitoba 236 $1,416M Ontario $1,322m Québec $16M New Brunswick $77M Nova Scotia VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

10 QUARTER-OVER-QUARTER VC INVESTMENT IN QUÉBEC // 2017 $600 $550 $500 $450 $400 $ Millions Invested # Deals NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL S HISTORICAL REPORTS. $350 $300 $250 $200 $150 $100 $50 $0 15 $ $84 $ $66 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 TOTAL: 83 DEALS / $307M 28 $30 27 $72 34 $ $73 TOTAL: 111 DEALS / $344M 38 $61 39 $ $ $217 TOTAL: 171 DEALS / $697M 28 $ $377 $ $203 TOTAL: 166 DEALS / $982M $178 $ $577 Q3 51 $218 Q4 TOTAL: 180 DEALS / $1.3B VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

11 VC ACTIVITY BY DEAL SIZE // 2017 Total Deals $ Millions $1M-$5M < $100K 9 $0 most active $100 - $500K 40 $8 deal category $500K - $1M 20 $15 in the province $1M - $5M $5M - $20M $20M - $50M $152 $198 $258 $50M + 6 $691 VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

12 VC SECTOR BREAKDOWN // $900 $840 $780 $ Millions Invested # Deals $720 $660 $600 $540 $480 $420 $360 $300 $240 $180 $120 $60 $ $118 $188 $317 $455 $ $48 $52 $288 $312 $326 $62 $29 $61 $ $ $7 $20 $30 $67 $ ICT Life Sciences CleanTech Agribusiness NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL S HISTORICAL REPORTS. VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

13 VC STAGE BREAKDOWN // 2013-YTD Q $ Millions Invested # Deals $780 $720 $660 $600 $ $480 $420 $360 $300 $240 $180 $ $60 $0 $16 $41 $27 $39 $42 $108 $173 $358 $414 $731 $184 $129 $296 $ $ Seed Early Stage Later Stage NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL S HISTORICAL REPORTS. VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

14 TOP 10 DISCLOSED QUÉBEC VC DEALS // 2017 COMPANY NAME ADMIN. CENTRE SECTOR DISCLOSED INVESTORS $ MIL. LIGHTSPEED POS INC. MONTRÉAL ICT ELEMENT AI INC. MONTRÉAL ICT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), INOVIA CAPITAL INC., INVESTISSEMENT QUÉBEC, TERALYS CAPITAL BDC CAPITAL INC., DATA COLLECTIVE, FMR LLC (FIDELITY), HANWHA INVESTMENT CORP, INTEL CAPITAL, MICROSOFT VENTURES, NATIONAL BANK OF CANADA, NVIDIA CORPORATION, REAL VENTURES $207 $141 LEDDARTECH INC. QUÉBEC ICT FONDS DE SOLIDARITÉ FTQ $128 REPARE THERAPEUTICS INC. BAS-SAINT- LAURENT LIFE SCIENCES VERSANT VENTURE MANAGEMENT, LLC, MPM CAPITAL, BDC CAPITAL INC., CELGENE EUROPEAN INVESTMENT CO. LLC, FONDS DE SOLIDARITÉ FTQ, FONDS RÉGIONAUX DE SOLIDARITÉ FTQ $91 MILESTONE PHARMACEUTIQUES INC. MONTRÉAL LIFE SCIENCES BDC CAPITAL INC., FONDS DE SOLIDARITÉ FTQ $71 BREATHER PRODUCTS INC. MONTRÉAL ICT MENLO VENTURES, RRE VENTURES, SLOW VENTURES, VALAR VENTURES MANAGEMENT LLC $53 INOCUCOR TECHNOLOGIES INC. MONTRÉAL AGRIBUSINESS CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS (CRCD), CLOSED LOOP CAPITAL, CYCLE CAPITAL MANAGEMENT (CCM), TPG CAPITAL LP $39 FORTUNA FIX MONTRÉAL LIFE SCIENCES AMGEN VENTURES $32 BLOCKSTREAM CORPORATION MONTRÉAL ICT DG LAB FUND $32 LOGICIELS PARTNER ONE INC. MONTRÉAL ICT FONDS DE SOLIDARITÉ FTQ $26 THERE WERE 3 UNDISCLOSED DEALS THAT WERE NOT INCLUDED IN THIS TABLE VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

15 TOP DISCLOSED VC EXITS // 2017 VC INVESTORS COMPANY NAME SECTOR EXIT TRANSACTION ACQUIRED BY $ MIL. CLARIDGE, INOVIA CAPITAL, GROUPE DYNAMITE, TERALYS, INTERMEDIA PARTNERS LUXURY RETREATS INTERNATIONAL INC. ICT M&A AIRBNB $392 BDC HEALTHCARE, FONDS DE SOLIDARITÉ FTQ, ORBIMED ADVISORS LLC CLEMENTIA PHARMACEUTICALS INC. LIFE SCIENCES IPO NA $174 FONDS DE SOLIDARITÉ FTQ, RHO CANADA VENTURES, SUMMIT PARTNERS, SKYPOINT CAPITAL CORPORATION ACCEDIAN NETWORKS INC. ICT M&A BRIDGE GROWTH PARTNERS $133 REAL VENTURES VRVANA INC. ICT M&A APPLE $38 NOTE: There were 8 additional undisclosed exits involving Quebec-based companies VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

16 MOST ACTIVE VC FIRMS IN QUÉBEC // 2017 Total Deals $ Millions* Capital Régional et Coopératif Desjardins 46 $252 Real Ventures 33 $325 Fonds de solidarité FTQ BDC Capital $520 $521 Cycle Capital Management (CCM) 18 $99 Investissement Québec 14 $290 Fondaction CSN 9 $19 most active FIRM 500 Startups Canada Caisse de dépôt et placement du Québec (CDPQ) 8 7 $4 $287 Capital Régional et Coopératif Desjardins Réseau Anges Québec 34 $ DEALS Anges Québec Capital 16 $58 * TOTAL DEAL VALUES - INCLUDES ALL PARTICIPATING INVESTORS VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

17 PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // 2017 NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL S HISTORICAL REPORTS. VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

18 PRIVATE EQUITY HIGHLIGHTS // 2017 Key Findings: Q HIGHLIGHTS: $2.1B was invested in Q4, more than double the $1B from the same quarter last year. The average deal size was $24.8M in Q4, up 98% from the $12.5M in Q HIGHLIGHTS: Québec captured 55% of all Canadian PE deals (330 out of 603), three times greater than Ontario s 18% share and five times greater than Alberta s 11% share. There was $10.7B invested in Québec-based companies in 2017, compared to $8.6B in Ontario-based companies and $3.1B in Alberta-based companies. 30% of all deals were between $1M-$5M, with deals between $5M-$25M capturing a 21% share of the province s deal activity. Industrial and manufacturing companies received the largest share of PE deals (26%) with consumer and retail companies receiving 15%. 2 $1B+ mega-deals amounted to $3.3B or 31% of total dollars invested. This included a private placement in Osisko Gold Royalties Ltd. by Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ. There were 101 exits involving Québec-based companies. VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

19 PRIVATE EQUITY HEAT MAP // ALL PE DEALS // 2017 total $26.3b total # 603 deals $2.9B BC $3.1B Alberta $76m Saskatchewan 22 9 $981M Manitoba 110 $8.6b Ontario 330 $10.7b Québec $33m New Brunswick na Prince Edward Island na Nova Scotia VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

20 QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY IN QUÉBEC // 2017 $ Millions Invested # Deals $4, $4, $3, $3, $2,500 $2, $1, NOTE: THIS IS THE FIRST YEAR THAT THE RÉSEAU CAPITAL IS PARTNERING WITH CVCA TO PRODUCE VC AND PE STATISTICS FOR QUÉBEC. THUS, DATA COMPARISONS AGAINST PREVIOUS YEARS MAY NOT BE CONSISTENT WITH RÉSEAU CAPITAL S HISTORICAL REPORTS. $1,000 $500 $0 12 $42 Q1 25 $1,458 Q2 8 $84 Q3 $154 TOTAL: 66 DEALS / $1.7B Q4 $1,141 Q1 28 $1,917 Q2 25 $1,843 Q3 24 $900 Q4 TOTAL: 97 DEALS / $5.8B 30 $1,729 Q1 $267 Q $2,556 Q3 $905 Q4 TOTAL: 176 DEALS / $5.5B $1,255 Q1 $913 Q2 $620 Q3 $1,038 Q4 TOTAL: 347 DEALS / $3.8B $2,860 Q1 $1,371 Q2 $4,295 Q3 $2,134 Q4 TOTAL: 330 DEALS / $10.7B VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

21 PE ACTIVITY BY DEAL SIZE // 2017 Total Deals $ Millions < $100K 9 $1 $100 - $500K $500K - $1M $1M - $5M $5M - $25M $9 $31 $221 $755 2 Mega-deals capture 30% of total dollars $25M - $100M 31 $1,388 $100M - $500M 13 $2,887 $500M-$1B 3 $2,118 $1B-$2.5B 2 $3,250 $2.5B+ 0 $0 VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

22 PE SECTOR BREAKDOWN // 2017 # Deals $ Millions Industrial & Manufacturing Consumer & Retail $1,478 $1,417 most active sector ICT 41 $1,009 Industrial & Mining & Resources 39 $1,754 Manufacturing Agri-Forestry Business Products & Services $463 $1, deals Automotive & Transportation 20 $518 Life Sciences 13 $219 Others 10 $2,232 Financial CleanTech Real Estate Oil & Gas, Power $196 $66 $7 $288 VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

23 TOP 10 DISCLOSED QUÉBEC PE DEALS // 2017 COMPANY NAME ADMIN. CENTRE DISCLOSED INVESTORS INVOLVED IN TRANSACTION SECTOR $ MIL. GARDA WORLD SECURITY CORP. MONTRÉAL APAX PARTNERS LLP, RHÔNE GROUP LLC OTHERS $2,200 OSISKO GOLD ROYALTIES LTD. MONTRÉAL CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), FONDS DE SOLIDARITÉ FTQ MINING & RESOURCES $1,050 CANAM GROUP INC. CHAUDIÈRE- APPALACHES AMERICAN INDUSTRIAL PARTNERS (AIP), CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) INDUSTRIAL & MANUFACTURING $890 ALIMENTATION COUCHE-TARD INC. LAVAL CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) CONSUMER & RETAIL $700 BORALEX INC. CENTRE- DU-QUÉBEC CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), CASCADES INC. OIL & GAS, POWER $288 QUEBEC IRON ORE INC. MONTRÉAL CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), SPROTT RESOURCE LENDING CORP. MINING & RESOURCES $230 LA COOP FÉDÉRÉE MONTRÉAL FONDACTION CSN, FONDS DE SOLIDARITÉ FTQ, NATIONAL BANK OF CANADA AGRI-FORESTRY $200 LA CAPITALE FINANCIAL GROUP INC. QUÉBEC CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) FINANCIAL $150 ACCEDIAN NETWORKS INC. MONTRÉAL BRIDGE GROWTH PARTNERS LLC, FONDS DE SOLIDARITÉ FTQ, RHO CANADA VENTURES, SKYPOINT CAPITAL CORPORATION, SUMMIT PARTNERS ICT $133 CCM HOCKEY BAS-SAINT-LAURENT ADIDAS AG, BIRCH HILL EQUITY PARTNERS MANAGEMENT INC. CONSUMER & RETAIL $110 THERE WERE 6 UNDISCLOSED DEALS THAT WERE NOT INCLUDED IN THIS TABLE VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

24 TOP DISCLOSED PE EXITS IN QUÉBEC // 2017 SELLER COMPANY NAME BUYER $ MIL. APAX PARTNERS GARDA WORLD SECURITY CORP. RHONE CAPITAL $2,200 CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS BEAUFIELD RESOURCES NA - SALE OF SHARES ON PUBLIC MARKET $0.2 CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS FALCO RESOURCES LTD. NA - SALE OF SHARES ON PUBLIC MARKET $0.2 CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS CARTIER RESOURCES INC NA - SALE OF SHARES ON PUBLIC MARKET $0.2 NOTE: There were 97 additional undisclosed exits from Québec-based companies VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

25 MOST ACTIVE PE INVESTORS IN QUÉBEC // 2017 # Deals $ Millions* Fonds de solidarité FTQ 128 $4,171 Capital Régional et Coopératif Desjardins 116 $832 Fondaction CSN 33 $434 Caisse de dépôt et placement du Québec 31 $4,198 Investissement Québec 29 $877 XPND Capital 10 $30 BDC Capital Inc. Novacap Investments Inc. 8 5 $123 $1,236 most active PE investor * TOTAL DEAL VALUES INCLUDES ALL PARTICIPATING INVESTORS Fonds de solidarité FTQ 128 DEALS VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

26 CVCA METHODOLOGY //VENTURE CAPITAL QUÉBEC ADMINISTRATIVE REGIONS Venture Capital Data: Verified completed equity or quasi-equity venture capital deals only (non-equity or projectbased government funding, pharmaceutical development deals, senior debt, venture capitalbacked acquisitions, and angel financing are not included) NORD-DU-QUÉBEC / ABITIBI-TÉMISCAMINGUE OUTAOUAIS LAURENTIDES LAVAL VC DEVELOPMENT STAGES SEED STAGE EARLY STAGE LATER STAGE COMPANY HAS A CONCEPT OR PRODUCT UNDER DEVELOPMENT, BUT IS PROBABLY NOT FULLY OPERATIONAL. COMPANY HAS A PRODUCT OR SERVICE IN TESTING OR PILOT PRODUCTION. IN SOME CASES, THE PRODUCT MAY BE COMMERCIALLY AVAILABLE. PRODUCT OR SERVICE IN PRODUCTION AND COMMERCIALLY AVAILABLE. COMPANY IS GENERATING ON-GOING REVENUE, BUT NOT NECESSARILY, PROFITABLE. MONTRÉAL MONTÉRÉGIE LANAUDIÈRE MAURICIE ESTRIE VC SECTORS ICT LIFE SCIENCES CLEANTECH AGRIBUSINESS COMPUTER HARDWARE AND SOFTWARE AND SERVICES, INTERNET SOFTWARE OR SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE AND TELECOM TECHNOLOGIES AND SERVICES BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES TRADITIONAL AND ADVANCED AGRICULTURAL TECHNOLOGIES AND SERVICES CENTRE-DU-QUÉBEC QUÉBEC CHAUDIÈRE-APPALACHES SAGUENAY-LAC-ST-JEAN/ CÔTE-NORD BAS-SAINT-LAURENT GASPÉSIE/ÎLES-DE-LA-MADELEINE VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

27 CVCA METHODOLOGY //PRIVATE EQUITY QUÉBEC ADMINISTRATIVE REGIONS Private Equity Data: Dataset includes only completed private equity deals (announced but yet to be completed deals are not included) NORD-DU-QUÉBEC / ABITIBI-TÉMISCAMINGUE OUTAOUAIS LAURENTIDES PE DEAL TYPE BUYOUT GROWTH ADD-ON INVESTMENT FOR THE CONTROL OF A PORTFOLIO COMPANY, INCLUDING PLATFORM CREATION, SECONDARY BUYOUT SIGNIFICANT MINORITY INVESTMENT INTO A PORTFOLIO COMPANY, THROUGH NEW CAPITAL INFUSION AND RECAPITALIZATION CORPORATE ACQUISITIONS BY MAJORITY CONTROLLED PE BACKED PORTFOLIO COMPANIES LAVAL MONTRÉAL MONTÉRÉGIE LANAUDIÈRE MAURICIE DEBT INFRASTRUCTURE DEBT INVESTMENT INTO PORTFOLIO COMPANIES INVESTMENTS INTO DEVELOPMENT AND MANAGEMENT OF INFRASTRUCTURE ASSETS BUT PE DOES NOT OWN THE UNDERLYING ASSETS continued ESTRIE CENTRE-DU-QUÉBEC QUÉBEC CHAUDIÈRE-APPALACHES SAGUENAY-LAC-ST-JEAN/ CÔTE-NORD BAS-SAINT-LAURENT GASPÉSIE/ÎLES-DE-LA-MADELEINE VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

28 CVCA METHODOLOGY //PRIVATE EQUITY continued PE SECTORS AGRI-FORESTRY AUTOMOTIVE & TRANSPORTATION BUSINESS PRODUCTS & SERVICES CLEANTECH CONSUMER & RETAIL FINANCIAL ICT INDUSTRIAL & MANUFACTURING LIFE SCIENCES MINING & RESOURCES OIL & GAS, POWER REAL ESTATE AGRICULTURE, FOODS AND FORESTRY TRANSPORTATION, LOGISTICS AND RELATED SERVICES BUSINESS PRODUCTS AND SERVICES ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES CONSUMER PRODUCTS AND SERVICES, BRICK AND MORTAR RETAIL FINANCIAL SERVICES COMPUTER HARDWARE/SOFTWARE & SERVICES, INTERNET SOFTWARE & SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE & TELECOM AND SERVICES EQUIPMENT AND MATERIAL MANUFACTURING BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES NON OIL AND GAS NATURAL RESOURCES OIL & GAS, POWER AND UTILITIES PROPERTY DEVELOPMENT AND MANAGEMENT VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //

29 CVCA/RÉSEAU CAPITAL ABOUT & CONTACT To obtain estimates for additional custom InfoBase data reports please contact Authors DARRELL PINTO Research Director Darrell oversees all data related to Canadian private capital investments, exit and fundraising activities for the CVCA. Darrell has held senior positions at several global organizations including the Toronto Stock Exchange, Institutional Limited Partners Association, Thomson Reuters, Glaxosmithkline and the Interac Association. In between these, he also started his own successful management consulting company. He has worked in New York, London and Shanghai, but Toronto remains his favourite working city. He brings to the CVCA a passion for telling compelling stories with data. Darrell is currently on the board of a non-profit social housing in Peel, a member of Volunteer Toronto as well as an active volunteer with Woodgreen Community Services. He holds a BA in Philosophy/History from the University of Western Ontario and an MBA from the Rotman School of Management. dpinto@cvca.ca ext. 208 DAVID KORNACKI Research Analyst David executes research on venture capital and private equity deals within Canada. David is responsible for monitoring industry activity and maintaining the CVCA s Infobase by entering data, including investments, exits, deals and fundraising activities on a daily basis. David holds a BA in Philosophy and Psychology from the University of Toronto. dkornacki@cvca.ca ext. 202 About CVCA The Canadian Venture Capital and Private Equity Association is the voice of Canada s venture capital and private equity industry. We are focused on improving the private capital ecosystem by broadening industry awareness and providing market research, networking, and professional development opportunities. We also advocate on behalf of the industry to ensure sound public policy that encourages a favourable investment environment. The CVCA works alongside its members, who represent the vast majority of private capital firms in Canada, to improve the industry and drive innovation and growth. For more information, visit /CVCACanada CVCA - Canadian Venture Capital and Private Equity Association 372 Bay St., Suite 1201 Toronto, ON M5H 2W9 About Réseau Capital Réseau Capital, the Québec Venture Capital and Private Equity Association, is the only private equity association that brings together all stakeholders involved in the Québec investment chain. The mission of Réseau Capital is to contribute to the development and efficient operation of the private equity industry, which plays a major role in the development and financing of businesses in Québec. Founded in 1989, Réseau Capital represents private equity, tax-advantaged and public investment companies as well as banks, accounting and law firms, along with many professionals working in the field. To arrange for an interview, please contact: Catherine Berbery catherine@reseaucapital.com For more information, visit Réseau Capital Espace CDPQ 3 Place Ville-Marie, suite 12350, Level L, Montréal, QC H3B 0E7 VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW //