Venture capital assets under management in Canada could decline to one per cent of overall North American VC in the next five years, down from 4 per cent currently, according to modelling from research and analytics firm PitchBook. VC assets in North America overall are poised to increase 38 per cent in that period. (The Logic)
Talking point: Venture capital fundraising and investing has been slow globally for the past few years, with a dearth of exits and economic uncertainty hampering activity. PitchBook analysts expect North American VC growth for the rest of the decade to be slower than the doubling in assets from 2019 to 2024, but the scenario looks particularly dire in Canada, where, unlike in the U.S., valuations have continued to slip and big exits are especially elusive. Just 27 new funds closed in Canada in 2024, according to the report. That’s the lowest level since 2016, and deal-making has slowed as a result. “Lower activity and smaller prices being paid do not paint a rosy outlook,” the report notes.