U.S. buyers were involved in 47.5 per cent of acquisitions of venture capital-backed Canadian tech companies, while Canadian buyers played into just 40 per cent of such deals, according to a Fasken analysis of about 250 deals from 2019 to 2024. (The Logic)

Talking point: The vast majority of buyers, 82.5 per cent, had a strategic reason for buying a company, while private equity buyers participated in 17.5 per cent of deals, according to the report, published Tuesday. Relatively few sellers tended to be involved in each deal, the report found, suggesting there’s a high concentration of ownership within Canadian VC-backed businesses. Companies sold relatively early in the growth cycle, with 77.5 per cent of exits falling between $50 million and $500 million, and just 2.5 per cent of deals surpassing $1 billion. The data, which Fasken partner Constantinos Ragas said mostly indicates a “healthy market,” doesn’t capture the impact of recent economic tensions between Canada and the U.S. An analysis from Export Development Canada found a steep drop in cross-border M&A between February and August last year.

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