Canadian startups raised $2.4 billion in venture capital across 143 deals in the second quarter of 2024, up 85 per cent from the first quarter, according to the Canadian Venture Capital and Private Equity Association. Private equity deals totalled ​​$4.2 billion for the quarter, up from $4 billion at the start of the year and just $1.6 billion a year earlier. (The Logic)

Talking point: While more VC dollars were invested last quarter, the volume of deals was the lowest since 2020, as investors favoured large rounds in later-stage companies. “The persistent decline in seed deals raises concerns about the long-term pipeline of investment-ready companies,” CVCA CEO Kim Furlong said in a press release. Private equity investors also preferred bigger transactions, with the average deal size hitting $25 million for the first half of 2024, the highest since 2019. A resurgence in M&A, as well as secondary buyouts, drove the PE activity, the report found, while the initial public offering window remained closed.