Canadian startups raised $1.65 billion across 182 deals in the second quarter of the year, down from $5.6 billion across 296 deals for the same period last year, according to the Canadian Venture Capital and Private Equity Association (CVCA). The total was in line with 2020 and 2019 investment activity, when companies raised about $1.6 billion in the second quarter. (The Logic)

Talking point: Investors are taking a cautious approach, deploying dollars more slowly while rethinking strategy, said CVCA CEO Kim Furlong in Thursday’s report. The decline in deal-making looks especially drastic against last year’s record activity. Canada’s private equity market also slowed in the first half of 2022 relative to last year’s record activity, a separate CVCA report shows. However, second-quarter private-equity investing jumped 93 per cent over the previous three months, due to two “mega deals” worth more than $500 million. In the venture capital report, Furlong emphasized the ongoing need for government support to bolster Canada’s startup sector, saying programs like the federal government’s Venture Capital Catalyst Initiative (VCCI) “will be essential to help weather unpredictability.” The government opened applications for its $450-million VCCI funding program in May. Furlong said she expects successful funds to begin distributing the bulk of the capital by this fall.