Forget last year's doom
and gloom prognosis regarding Canadian venture capital
and deal activity. According to the Canadian Venture Capital & Private
Equity Association (CVCA), Q1 2016 saw venture capital
investments in Canada hit a record high of $838 million, nearly
double Q1 2015, despite the slowdown south of the border in U.S.
venture capital funding. Ontario companies performed the best in
Q1, as they pulled in roughly $486 million in funding, while B.C.
came in second with $207 million over the same period.
Interestingly, the majority of the funding going to Canadian
companies in 2016 has come in later-stage financing rounds,
according to Mike Woollatt, CEO
of the CVCA. This trend may be in response to the significant
decrease in the number of initial public offerings taking place on
both sides of the border. The Toronto Stock Exchange has yet
to see any new issuances so far this year, while U.S. markets have
been similarly void in that regard.
The Financial Post has reported that so far this
year, the average deal size has grown to approximately $7.1
million, which is a sizeable increase from recent years where the
average was somewhere in the $4-5 million range. The same report
also noted that there have been 118 venture deals in Canada in
2016. Some of the biggest winners in Q1 are Real Matters Corp., which
raised $100 million, Zymeworks
Inc., a life-science company that took in $87 million
and Ontario's BuildScale Inc., which operates a video marketing
platform called Vidyard and was able to raise
$49 million. Our own GreenSpace
Brands (TSXV:JTR) also successfully raised $8.9 million.
The CVCA has publicly stated that it
expects this pace to continue throughout the year, which bodes well
for both entrepreneurs and the Canadian venture capital ecosystem
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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