Canadian companies raised $10 billion in venture capital across 706 deals in 2022, according to the Canadian Venture Capital and Private Equity Association (CVCA). Private equity activity was similar for the year, with companies raising $10 billion over 890 deals. (The Logic)

Talking point: CVCA described the VC investment environment in 2022 as showing signs of normalizing after exceptionally high levels of activity in 2021, in which companies raised $15.1 billion, according to its analysis. While deal-making slowed in the second and third quarters, the number of deals and amount invested ticked up slightly in the fourth quarter. Early-stage deals were especially resilient. “You can’t grow what you don’t seed, and given the increase across pre-seed and seed stages, we know Canada has a healthy pipeline of companies that are benefiting from VC investment,” said CVCA CEO Kim Furlong in a press release. Private equity financing was also more concentrated in smaller deals, which the report attributed in part to the fastest interest-rate increase cycle in 40 years.