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In Q4 2021, Ecosystem Name attracted $598M in total investment, with $500M of that total from Faire's Series G round
In , surpassed 2020 in total investment but had 26% less deals overall which continues its trend in the decline of reported deals overall and a significant decline in Seed stage deals with 26 in 2019 and 8 in 2021. While we know that there may be unreported Seed stage deals, we are not seeing this in the other regions we report on, we see this large decline as concerning for the health of the tech ecosystem and this combined with the fact that 71% of Waterloo Region's startups have not moved from Seed to Series A in over 18 months (the highest rate across all Canadian Regions) means that we may see less tech growth in Waterloo Region in the coming years. Looking at total investment in 2021, Waterloo Region looks healthy at first glance, but the really large later stage funding can skew the insights. If we look at the data without the investments for the dual headquartered Faire, we see that the total investment for each of the last three years was $337M for 2019, $485M for 2020 and $587M for 2021 (Faire accounted for $814M or 58% of 2021 investment dollars for Waterloo Region). Combined, Faire and Applyboard raised 85% of the total funding for Waterloo Region in 2021 (1.19B) across 3 deals, which results in a total of $212M spread across 29 other deals.
In , ’s tech ecosystem
had investments totaling CAD.
in total investment and a
in the number of deals compared to last quarter. If you look back to
, this quarter has seen the total investment by
and the number of deals .
We acknowledge that tech vs tech-enabled is a hard line to define. We only store deals for companies that are building Technology or Science/Medical products (eg. FinTech, BioTech, SaaS, MedTech, Hardware, NanoTech, etc.).
We do not include deals for online brands, DTC companies, retail companies selling online, traditional oil and gas companies, consulting agencies, mining companies, etc. These type of companies may be tech-enabled and are important in our ecosystems, but they are not building/selling tech as core to their product.
For certain companies, where the line is blurry, we will make a judgement call on a case-by-case basis. In these cases we will tag the company and deal as "misc".
We classify a Canadian tech company as one that is Headquartered in Canada OR is dual-headquartered in Canada and one other location OR was founded in Canada by Canadian citizens and has significant amount of team members in Canada.
When there is doubt, we use our network and/or ask the founders in order to make the final determination. (eg. In some cases announcments may state that a company is based in Toronto but their HQ is actually Waterloo or Vancouver).
We track Pre-Seed, Seed, Series A/B/C/D+ and Convertable Note deals (debt that converts to equity).
We do not track debt only deals, PE deals or IPOs. Sometimes a deal contains both debt and equity without a breakdown %, in that case we add the full deal amount.
We use the publicly announced date or the date when we get confirmation from the founder that the deal occurred. We convert all USD amounts to Canadian dollars, so sometimes you will see a difference between our data and the amount posted in a news article.
On occasion an older deal is disclosed as part of a new deal announcement, in this case we add that older deal to the database using its specified close date.
We get data from founders who submit their deal information to us, so we can help them spread the good news. We also get data from online, public sources.
In most cases you will see an accompanying article or post for a company's funding round. In cases where there is no article/post we reach out to the founders and our network for confirmation.
We are Canada's only public, independent system of record dedicated to Canadian technology startups and venture capital. Our numbers may be different from other reports because we have a much more strict definition of a tech company, more accurate information on the city location of the company, we use the announced date, and we classify Canadian companies in a way that aligns more with the ethos of the tech ecosystems in Canada. You should note that no system has 100% of the data, and insights from any platform should be used as a barometer, not as an exact measure.
People On The Move
Brought to you by Artemis Canada - Executive Search for Canada's Innovation Economy.
Lisa Brown joins Borrowell as VP People & Culture.