The dry powder reserves follow a slowdown in investing activity in 2022, according to the latest annual report from the Business Development Bank of Canada’s venture capital arm. The number of deals and dollars invested in Canada last year fell about 12 per cent and 34 per cent, respectively, from 2021 levels. (The Logic)

Talking point: The slump in investing activity in 2022—and so far this year—has left about half the companies in Canada needing to raise capital in the next 12 months, estimated BDC, which was the most active VC investor in the country last year. But despite having money on hand, many investors are still apprehensive about spending it. “[General partners] with dry powder will continue to be selective in their investments,” the report reads. BDC predicts investors will prioritize follow-on funding rounds in existing portfolio companies over new investments “insulating their best investments from any further market shifts.”