Montreal-based companies raised US$399 million in venture capital during the first quarter of 2018 — more than companies in any other Canadian city according to a report by PwC Canada and market research company CB Insights.
This is the second quarter in a row where Montreal companies have raised more venture capital than businesses in any other Canadian city. The amount of money invested in Montreal companies during the quarter was up 96% from the previous quarter, when $204 million was invested in local companies. It’s the most money raised by Montreal-based companies in a single quarter since PwC began releasing the quarterly reports on VC activity in 2012.
However, the biggest factor driving the increase was a single deal — a US$224 million investment in Montreal-based Enerkem, which develops technology that turns solid municipal waste into biofuel. The company has previously attracted U.S. investors, as well as investors from elsewhere in Canada.
In total, there 16 venture capital investments in Montreal during the first quarter of this year. That’s compared to 38 deals, worth a total of US$321 million, in Toronto and 20 deals, worth a total of $103 million, in Vancouver. In total, US$1.01 billion in venture capital was invested in the first quarter of 2018, across 105 deals, the largest amount since 2012 according to PwC Canada. Artificial intelligence and financial technology were of particular interest to investors.
