Quebec venture capital is working well

Réseau Capital, the investment capital association, recorded 39 transactions for a total of $ 468 million during this period. But this amount is still lower than that generated in Ontario and British Columbia, respectively, 1.2 billion and 700 million in investments.

This record in Quebec between January and March is explained by an investment of $ 215 million in Hopper’s plane ticket application and $ 53 million in the AddÉnergie electrical terminal. Spark Microsystems, which makes chips intended to replace Bluetooth technology, has not been left out in the $ 18 million fundraiser.

For Réseau Capital president and managing director Guillaume Caudron, this is a sign that the financing chain is becoming more and more stable. start-up, c’est réservé à des écosystèmes très matures et développés, explique-t-il. Nous, on est entrain de se développer.”,”text”:”Avoir toute l’expertise dans tous les domaines pour être capable d’accompagner une start-up, c’est réservé à des écosystèmes très matures et développés, explique-t-il. Nous, on est entrain de se développer.”}}”>Have all the expertise in all areas to support a Get started, it is destined for very mature and developed ecosystems, he explains. We are thriving.

On balance, however, we should count the overseas sales of four companies that benefited from venture capital, including the sale of artificial intelligence firm Element AI to American ServiceNow.

Innovative start-ups looking for big money

Montreal start-up company Mantle is currently developing security solutions with blockchain technology for businesses. Not to say that its technology is highly sophisticated.

Its leader, Pascal Leblanc, argues that venture capital funds invest in things they know. business to consumer], c’est-à-dire à la clientèle, que les gens peuvent télécharger ou des produits de consommation”,”text”:”Ici, dit-il, les fonds sont opérés par des entrepreneurs experts dans les produits B2C [business to consumer], c’est-à-dire à la clientèle, que les gens peuvent télécharger ou des produits de consommation”}}”>Here, he said, the funds are managed by entrepreneurs who are experts in B2C products. [business to consumer] -i.e., customers-that people can download, or consumer products. Its technology would be very suitable for Quebec funds.

Its investors are from Ontario and the United States, not from Quebec. The young entrepreneur among them is Toronto investment fund Globalive, of the founder of former wireless telecommunications provider Wind Mobile, Anthony Lecavera.

But a change has taken place over the past few months. The new venture capital fund Boréal Ventures was launched in February to meet needs in the field of applied sciences. Investissement Québec also set up the Impulsion PME program in April to help young innovative companies by investing up to $ 1 million.

Quebec can achieve this, according to Pascal Leblanc, by avoiding possible leakages of revenues in the event of sales and by ensuring a greater sense of belonging for entrepreneurs.

If I were to sell the Mantle for a billion dollars, it’s all in Ontario, that’s a billion. Then, I will be more inclined to create a deep tech fund [technologies basées sur des innovations en ingénierie ou en science] in Ontario or Silicon Valley. »

A quote from Pascal Leblanc, co-founder and CEO, Mantle

$ 1.1 billion in development capital

In the first quarter, development capital allocated for more mature companies reached $ 1.1 billion in Quebec, only $ 100 million less than in neighboring Ontario. The ecosystem of investment funds in this niche is better structured.

Montreal’s Solotech has been at the forefront of getting this type of financing over the past year. The company known in some countries for its expertise in sound, lighting and event video – from Celine Dion to Elton John – has had to review its business model in the pandemic, and invest in e -commerce, virtual production and online. broadcasting.

Last week, it announced the acquisition of CBCI Telecom, a Canadian service for videoconferencing solutions, that will add $ 40 million to its turnover.

It’s not just to raise funds, emphasizes its president and general manager Martin Tremblay. You need to show what the plan is. [Pour] to us, technological change has led our shareholders and investors to support us.

Solotech was able to make five acquisitions during the pandemic thanks to its shareholders in Quebec (Desjardins Capital, Investissement Quebec and Claridge) and to its bankers in Canada. We had to raise a large amount of money to do this.said Mr. Tremblay.

Its revenues dropped from 450 to 250 million dollars from 2019 to 2020. Since then, Quebec’s flagship has already secured several business opportunities and it expects record sales of 600 million by 2022.

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