Emerging Trends In Canada's Innovation Economy

Canadian tech thrived in 2021. We saw record valuations, increased interest from U.S. investors and a healthy number of companies going public. The average valuation for venture-backed companies climbed by 215% from 2020¹. This immense capital supply added fuel to a maturing ecosystem and a market with a broad, robust sector focus.

  The question now being asked is: can the Canadian innovation economy sustain this explosive growth? In this article, we highlight what we expect to see in 2022.

Continued growth of later-stage investments

Historically, most Canadian venture capital deals have been with early-stage companies. In recent years, there has been a notable increase in later-stage funding. Growth and later-stage deals accounted for 63% of total venture capital dollars in Q3 2021, a substantial increase from previous years². While it is common to see more deal numbers at the early stage, as the industry continues to develop, we expect to see a growing