The Montreal-based venture capital firm is seeing “positive momentum” in the private funding landscape for software-focused companies, following the sector’s boom and bust cycle in the wake of COVID-19. Inovia’s market analysis found investors allocated US$1 billion to Canadian venture-stage companies in the space and US$2.5 billion to growth-stage firms in 2023, up 25 per cent and 30 per cent, respectively, from 2019. (The Logic)

Talking point: Companies and investors are still facing challenges, with high interest rates and a slow exit market dragging down deal volumes. With valuations dropping below historic averages (with the exception of AI companies), firms have had to be more efficient, “resulting in a growing pool of more profitable companies to invest in,” according to the report. “The current environment is increasingly investor-friendly with strong market tailwinds.”