Canada venture capital investment at 4-year high
By Pav Jordan
TORONTO (Reuters) - Venture capital investment rose to a four-year high in Canada in 2011, driven by broad bets on innovation sectors and dominated by activity in information technology, the Canadian Venture Capital and Private Equity Association (CVCA) said on Tuesday.
Venture capital investment rose to C$1.5 billion ($1.5 billion), up 34 percent from 2010 and the highest level since 2007, when it was C$2.1 billion.
Canadian venture capital has helped launch some of Canada's most successful companies, including BlackBerry maker Research In Motion RIM.TO.
But investment has slowed recent years as capital flowed to more established industries and some innovators chose to launch their ventures in the United States, where 3,000 companies shared $28.5 billion in risk capital funding last year.
Venture capital went to 444 Canadian companies in 2011, a six-year high.
Canadian venture-capital fund-raising was C$1 billion in 2011, little changed from 2010. In the United States, it was$18.2 billion, up 32 percent from 2010.
FOCUS ON INFORMATION TECHNOLOGY
Canadian information technology sectors attracted C$692 million in capital, or 46 percent of the total. Continued...