Quebec led the country in the amount of venture capital dollars raised by tech startups, but Ontario had the most deals, according to the PwC and CB Insights’ MoneyTree Canada Report for Q2 2017.
Quebec saw 11 deals done totaling $204 million, Ontario had 30 deals totaling $123 million, B.C. saw 12 deals worth $57 million, Atlantic Canada had three deals worth $10 million, and the Prairies saw two deals worth $5 million. That’s all just in the last quarter, and now you can explore where the top VC deals across Canada have been made between Q3 2016 and Q2 2017 on our Tech Sector Growth Map of Canada, below. Make sure to check the bottom layer as visible to see the flame icons indicating company addresses that raised money.
Overall, investment activity was down 18 per cent in terms of dollars and down 16 per cent in terms of deals, to total about $400 million this quarter. The number of deals are the lowest Canada has seen since Q3 2015. From a sector perspective, Internet companies led the way with 31 deals totaling $96 million. Mobile and telecom was the next most-invested-in sector at $26 million over six deals.
The new data from PwC and CB Insights adds to our custom Google Map that provides an increasingly deep, and pan-Canadian view of tech sector metrics. Earlier this month we added layer 6 from the Branham300 group, listing the top 250 ICT revenue earners across Canada for 2017. We started last November with a comparison of several different reports on tech sector job growth, our goal is to have one place that collects all the data measuring Canada’s tech sector growth in one place.
Here’s the seven sources of data you can explore in our customized Google Map below:
Layer 2) Same JLL report – employment growth
Layer 4) CBRE Scoring Tech Talent 2016
Layer 5) Statistics Canada – ICT employers per capita 2016
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Detailed data layers breakdown
Layers 2, 3, and 4 all show growth in tech jobs for 2016. But each one reports on this growth differently. For example, the number of tech jobs available in Montreal for 2016 are 87,433 according to JLL; 112,900 according to CBRE, and 222,200 according to Brookfield.
Layer 1 shows the biggest lease transactions made in the past year is from JLL Research’s Technology Outlook 2016 Canada report. Jones Lange LaSalle Inc. is a professional services and investment management firm with a specialization in real estate. Its research arm is staffed with 415 researchers and Toronto-based research manager Thomas Farr is the contact listed on this report.
Layer 2, from the same report, is showing tech sector job growth since 2001. The report lacks a methodology section, but cites JLL Research and Statistics Canada for its data.
Layer 3 shows concentration of tech sector employment is from The State of Canada’s Tech Sector, 2016 by Brookfield Institute for Innovation and Entrepreneurship. Explained in a methodology section, the data is from Statistics Canada’s Labour Force Survey and analyzed by Brookfield to produce the city-by-city breakdown of employment.
In a detailed methodological breakdown, Brookfield explains that it used four main criteria to classify an occupation as a “tech sector” occupation. That included 1) Use of STEM knowledge base to perform duties 2) Engaged in R&D 3) Strong understanding and use of high-tech 4) Highly engaged in the production of high-tech outputs. If an occupation meets at least three out of four of these criteria, Brookfield considers it a tech sector job.
Layer 4 represents data from CBRE Research and its report released in early November. This report ranked 10 cities across Canada by a score that is an aggregate of 13 different metrics that represent employment, education, tech industry outlook and real estate market outlook. The metrics are weighted in importance to companies that are seeking tech talent, for example favouring tech labour costs over tenant rent. The most-weighted metric is what percentage of total employment that tech represents. CBRE also used Statistics Canada data on tech talent, using its definition of four job classes ranging form software developers and programmers to computer support and database systems workers, which are highly concentrated in the high-tech industry.
Layer 5 shows the Statistics Canada data on concentration on the number of ICT firms hiring employees in the top nine regions for this across the country.
Layer 6 places all 250 ICT firms on the Branham300 list for 2017 on the map by address. Click on these icons to see details about revenue and relative change in rank over last year. The analyst firm says that it uses a combination of publicly-listed earnings reports and private submissions on revenue earnings to create its list.
Layer 7 shows the top five venture capital investments in the top five tech markets across Canada, according to PwC and CB Insights’ MoneyTree Canada Report for Q2 2017. Deals listed here extend back to those made in Q3 2016. Dollar figures are in USD. Any funding done by publicly-traded companies is not included in this data.
We’d like to continue to develop this map with new data sources and new indicators of tech sector growth in Canada. If you have data you want to share with us, let us know in the comments below or tweet @brianjjackson.