CANADIAN VENTURE CAPITAL

LANDSCAPE
TABLE OF CONTENTS

1. What’s New in 2018 Page 5-8

2. Overview: Why We Continue to be Excited About Canada Page 10-15

3. Canadian ecosystem: Stronger than ever Page 17-22

4. Public sector remains focused on growth in VC and Tech Page 24-29

5. Diversity & Talent is Canada’s Strength Page 31-36

6. Deep Dive on Canadian VCs Page 38-42

2
 A WORD FROM OUR CANADIAN PARTNER

Authors/ Contributors
Jean-Francois Marcoux Christophe Bourque
Co-Founder & Managing Partner Principal
WHITE STAR CAPITAL “Back in 2010, when I started my career in VC, I spent a lot
of time explaining to people what VC was. It is amazing to
see how far the Canadian ecosystem has come and we at
White Star consider ourselves lucky to be a part of it.”
“We are proud to be a partner of choice for Canadian
entrepreneurs. The Canadian ecosystem is building some
amazing companies with global ambitions, led by hustling Sanjay Zimmermann
founders and talented world-class teams” Associate
“Canada still has it all and more. Nothing
In this second edition of our report, we aim to reiterate our can’t be built here and the world has been
enthusiasm on the Canadian Tech and Venture Capital ecosystem taking notice”
as well as touch upon a few additional topics.
Gagan Singh
In addition to sharing our excitement about Canada and
Summer Associate
expressing our belief that the ecosystem is stronger than ever,
we look at a few new topics. We examine a few subsectors, larger “Within Canada resides every component of
what makes a successful entrepreneurial
round dynamics, VCCI and regional programs. We are also pleased
ecosystem”
to further explore one of Canada’s key strengths: it’s diversity and
talent. Finally we end with an updated deep dive on VC’s and
other investors making up the space.
External Data Sources
At White Star Capital, we started investing in Canada in 2007,
have made over 12 investments since and are looking forward to
many more. We hope you enjoy reading this report!

3
WHAT’S NEW IN 2018
2018 NEWS HIGHLIGHTS
Another big year for Canadian Tech

“TORONTO ADDED MOST “GOVERNMENT “PAYPAL WILL ACQUIRE

NORTH AMERICAN TECH ALLOCATES $350M HYPERWALLET FOR
JOBS”* THROUGH VCCI”* $400M”
HyperWallet will allow PayPal to
Toronto is the fastest growing tech 5 fund of funds will receive a
provide payment solutions to
market- CBRE report. portion of this amount.
ecommerce platforms.

“BDC SPINS OUT 2 NEW “CANADA WELCOMES “FEDERAL GOV’T

INDEPENDENT TECH
FUNDS”*
One of the funds will focus on
CleanTech, while the other’s focus
will be Healthcare and IT.
COLLISION TO
TORONTO”*
In 2019, the city will be hosting
90,000 executives from the world’s
fastest growing startups.
REVEALS 5 WINNING
SUPERCLUSTERS”*
The gov’t hopes to create 50K
jobs and grow the economy by
$50B over the next 10 years.

“BUDGET 2018 - GOV’T

“CANADIAN GOV’T IS
“PURPOSE FINANCIAL SPENDING BILLIONS TO
LAUNCHING A $100M
ACQUIRES THINKING IMPROVE GENDER
PROCUREMENT
CAPITAL FOR $200M”* EQUALITY”*
The goal of this acquisition is to
PROGRAM” The budget aims to encourage
create new investment products. The program will increase participation of women in the
procurements from startups. workforce.

*Additional details provided in the report

5
NEW FUND ANNOUNCEMENTS
Over $1.3B in new capital raised by Canadian VC funds this year

$715M $232M Stage:

Stage:

Sector: Sector:

$130M $75M
Stage:
Stage:

Sector:
Spin-out fund Sector:

$72M $50M
Stage:
Stage:
Sector:
Sector:

$50M
Stage: Legend
Stage Sector
Sector: Seed AI CleanTech
Series A Fintech Ecommerce
$25M Series B Smart City Transportation
Stage:
Series C Mobile Software
Sector: Growth Fund

Source: Tracxn
6
TORONTO’S TECH TALENT IN THE SPOTLIGHT
“Toronto Beats Silicon Valley in Tech Job Creation”

Toronto Startup Passport

The city of Toronto is partnering with
4th best tech WeWork to give international
talent in entrepreneurs access to WeWork
North spaces5
America2

Ranked as
The city was one of the
Created lowest cost
82,100 tech ranked 11th
as the top markets for
jobs in the tech
past 5 years- startup
ecosystem in companies4
beats SF by
4,270 jobs1 the world3

1 Huffington Post, 2 CBRE Report, 3 BetaKit, 4 CBRE Report, 5 BetaKit

7
 WORLD CLASS TECH AND VC EVENTS
Notable upcoming events over the next 12 months

2018

September September
September October October November November
19-20 19-20
24-27 18 22-23 2-3 28-29

Vancouver Toronto Ottawa Toronto Halifax Ottawa

2019

April May June June June July

10 20-23 4-6 5-7 19-20 9-13

Vancouver Toronto Vancouver Calgary Waterloo Montreal

8
OVERVIEW: WHY WE CONTINUE
TO BE EXCITED ABOUT CANADA
 VC FUNDING REMAINS STRONG
ICT1 and healthcare deals drive growth while larger deals remain a reality in Canada

Industry expertise and successful start-up activity in Canada
has captured the attention of investors. Canada experienced
record VC funding in 2017, and the momentum continues in
2018. Despite a slight slowdown in the first half of 2018 as
compared to 2017 VC funding continues to be quite high.
The increase in capital available and quality of startups has
made it possible to fund larger rounds – something that was
previously a challenge in Canada (more on this later in the
report). There have however been fewer mega rounds as
compared to 2017 which has led to smaller % of top 10 deals.

VC funding in Canada continues to be high Total funding allocated to top 10 deals

40%
$3.8B 34% 35%
31% 29%
23%
$3.2B

$2.3B
2013 2014 2015 2016 2017 2018YTD 2
$2.1B
$1.9B
$1.7B
Source: CVCA
VC-backed funding
$12m
$10m
$8m
$6m
$4m
$2m
$0m
2013 2014 2015 2016 2017 2018YTD
2
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2

Source: CVCA Average Deal ($m) Median Deal Value ($m)

Note 1: Information and Communications Technology Source: CBInsights
Note 2: YTD refers to data as of 30 June 2018 10
 50% INCREASE IN SEED STAGE DEALS
In the last decade, seed stage deals as a % of Canadian deal volume increased by 50% and exits grew steadily

As a greater percentage of total funding value is captured by The total number of exits rising year over year since 2010 is
the largest Canadian deals, Canada has also experienced a another encouraging sign as it suggests healthy levels of M&A
50% increase of the percentage of total deal volume captured activity in the country. However it is worth nothing that the #
by Seed-stage funding over the last 10 years. of VC backed exits has remained flat in the last few years.

% of Canadian deal volume per stage, The number of Canadian exits has been
per year steadily rising year-over-year since 2010
100%

90%

80% 703

70%
517
60%
471 466
444
50%

40% 291
30% 233
165
20%
59
10% 25 35 45 30 35
21 24 16
12
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018YTD

Number of exits in Canada (VC Backed)

Seed Series A Series B Series C Series D+ Number of exits in Canada (Total)

Source: CBInsights Source: CVCA Newsletter 11

 SIZING UP CANADA IN A GLOBAL CONTEXT
Canada sits with top regions for venture deals and is maintaining double digit growth

CAGR Deal Volume

Region Total Deal Amount (H1 18) Total Deal Volume (H1 18) (H1 16 – H1 18)

U.S $52.1B 2,224 +9.8%

U.K. $3.4B 262 +23.7%

France $2.0B 175 +75.4%

Germany $1.8B 145 +27.1%

Canada $1.7B 125 +35.9%

Israel $1.1B 97 +20.7%

Source: CBInsights
*Western Hemisphere only, VC deals Angel round through Series E+ 12
 DEAL SHARE BY STAGE; PAST 3 YEARS
Early evidence of Canada’s maturing ecosystem

A lower % of investments in the seed stages indicates a investments: only 3% lower than the U.S. Canada’s smaller
maturing ecosystem. Canada is starting to gravitate towards proportion of Series C+ investments is in part due to the
later-stage investments. The Canadian ecosystem has become younger nature of the ecosystem and the lack of VC funding
stronger as indicated by the increased number of Series B available at the C+ stages. (More on this on the next slide)

Seed/Angel
share of deals 49% 49% 49% 62% 69% 71%

Series A
share of deals 24% 24% 28% 22% 18% 19%

Series B
13% 13% 11% 10% 8% 6%
share of deals

Series C
7% 7% 6% 4% 3% 2%
share of deals

Series D
share of deals 3% 3% 3% 1% 1% 1%

Series E
share of deals 3% 3% 2% 1% 1% 1%

Source: CBInsights 13
 FLAT VOLUME OF $20M - $100M ROUNDS:
A clear symptom of the growth stage funding gap

# of $20-$100M rounds-since 2015 Top funds that led $20-$100M

rounds

18 18
17
16
3

2
2015 2016 2017 2018E
Source: Tracxn Source: Tracxn
1

• The # of $20 - $100m rounds since 2015 has been flat despite the general activity in rounds close to
doubling over the same period (growth apparently coming from sub $20m or over $100m rounds)

• Few Canadian funds are positioned to lead $20m+ funding rounds and international / CVC interest
seems to come in more at the $100m+ round size (see p. 22)
14
 CANADIAN SUBSECTORS
A snapshot of Canada’s strongest subsectors over the past 3 years

Artificial Intelligence Ecommerce

Deal volume Examples Deal volume Examples

60
46 55 46
50
40 35 31 27
30
27 35

20 15
2016A 2017A 2018E 2016A 2017A 2018E
*

Strong growth – doubling in deal volume Strong 2018 – following success of Shopify, Hopper etc.

IoT Fintech
Deal volume Examples Deal volume Examples

32
60
47 46 52
40 26 * 50
*
20
16 40
30
0 20 *
2016A 2017A 2018E 2016A 2017A 2018E
Return to growth after slowdown in 2017 Steady strong volume
Source: CBInsights 15
*White Star Capital portfolio companies
CANADIAN ECOSYSTEM:
STRONGER THAN EVER
 FAMGA & CO’S IMPACT ON CANADA
Industry leaders have been increasing their Presence in Canada

US Giants are expanding their R&D and Tech Giants are acquiring Canadian startups
Operations teams in Canada from coast to coast
Tech Giant acquisition presence per province over the last 10 years
Cloud Computing

• Google built its first Canadian cloud computing facility in

Montreal

• Amazon Web Services has opened a cluster of data

centers near Montreal
Source: CBInsights

Artificial Intelligence And are financing Canadian ventures at an

accelerated pace
• Google DeepMind opened its first ever international AI
• Tech firms have not limited their activity in Canada to expanding
research office in Edmonton
their operations, they have also invested in Canadian ventures.
• Google Brain has expanded to Montreal and Toronto • Microsoft Ventures and Amazon Alexa Fund have invested in an
equal or greater number of deals in Canada as in the entirety of
• Adobe Systems Inc* plans on opening an AI lab in Canada Europe over the last 5 years (YTD)s
• Samsung* launches an AI lab in Montreal and Toronto
Tech Giant Venture Capital Financing over the last 5 years
• Facebook* hires an AI expert to head its first research lab
Europe Canada
in Montreal
Google Ventures 9 1
• Microsoft* hires a a new director – AI professor from
Carnegie Mellon University – for its Montreal research lab Microsoft Ventures 6 2
Amazon Alexa Fund 0 7
• NVIDIA* is opening an AI Research lab in Toronto
*Partnerships announced in 2018
Source: Tracxn 17
 CONTINUED LARGE TRANSACTIONS IN H1 2018
ICT sector Dominates VC-backed acquisitions

2017 2018H1
Cambridge Global Payments Mitel
F Founded in 1992 Founded in 1973
$900m $2.6b
I Internet Software & Services Telecom Services
Toronto Ottawa

Sand vine Hyper wallet

Founded in 2001 Founded in 2000
$562m Fintech
$521m
Intelligence web traffic optimization
Waterloo Vancouver

Acceo
Luxury Retreats
Founded in 1999 Founded in 1988
$392m1 $264m
Luxury Villa Rentals Internet Software & Services
Montreal Montreal

Maluuba Thinking Capital

Founded in 2011 Founded in 2006
$230m2 $263m
Deep learning/machine learning Internet Software & Services
Waterloo Montreal
Source: Tracxn
*New companies since 2017 report
1 Based on CVCA reported exit value of C$392m
2 The Maluuba deal value was undisclosed. However, the value is estimated to have been of approximately $230m
18
 TOP FUNDED CANADIAN COMPANIES
Companies which received funding over the last 10 years

Total funding $m
468 462 New additions
in 2018

378
363

286
272 264
221 215 211
198 191
176 170 159 153

Source: CBInsights
19
Note: Excludes funds raised during an IPO
 NO VC BACKED IPO’S IN 2018 TO DATE
VC-Backed IPO's experience a slower start in the first half of 2018

Canadian VC-Backed IPOs have seen continuous growth in the would stabilize. This has led to higher anticipation for tech
size of the largest IPO per year over the same period until IPOs in the second half of 2018. Companies such as Spacey,
2018. Due to expectations of rising interest rates at the start Electra Mechanical, Nerds on Site, Hootsuite and Vision are
of 2018, companies stalled their IPOs in hopes that the market expected to IPO in the near term.

Canadian VC-Backed IPOs from 2014 to 2018

$42m1 $97m2
$25m1
$101m1 $131m2 $157m1 No VC-backed
$5m2 IPO’S
$58m2 $46m2 $87m1

2011-2013 2014 2015 2017 2018H1

Legend: ICT Sector Other Sectors

1 CVCA Infobase, 2 CBInsights

Note: There were no Canadian IPOs in 2012 or in 2016, Does not include Reverse Takeovers (RTOs) or Reverse Mergers
20
 LARGEST FUNDING ROUNDS OVER LAST 4 YEARS
Canada experienced record VC funding in 2017 and the momentum continues in 2018

2015 2016 2017 2018H1

Series E Series D
Series C Series B
$260m $186m
$61m $140m
1999 1995
2005 2012
Quantum computing and Integrated EHR platform for
SaaS Retail Management Wearable Technology
superconducting electronics long term providers
Montreal Kitchener
Burnaby Toronto

Series C
Series D Series D Series E
$103m
$60m $216m $130m
2005
2004 2005 2005
Precision agriculture and data-
Residential Appraisal Platform Mobile Software & Services Internet Software & Services
management
Markham Montreal Quebec City
Winnipeg

Series A
Series C Series C
$134m
$95m $127m
2016
2007 2007
LEGEND Launches and Incubates
Predicts airfare Consumer Electronics
advanced AI Solutions
Montreal Toronto
<$100m Montreal

>$100m Series C
Series C $111m Series C
$77m 1995 $102m
2007 Integrated EHR platform for 2007
Source:Tracxn
*New companies since 2017 report Digitalization of circulars/flyers long term providers CleanTech
Toronto Toronto Calgary 21
 FOLLOWING GLOBAL TREND OF MEGA ROUNDS
Evolution of the market; Growing Number of $100m+ rounds

3x the number of $100m+ rounds • Canadian Funds

compared to 2016
1
round
6
5 2
rounds
• International Funds
2 1
round

0
2
2015 2016 2017 2018H1 rounds
Source:Tracxn

• Amongst Canadian funds, domestic pension funds and sovereign funds such as CDPQ, Investissement
Quebec and PSP have been quite active (i.e. CDPQ invested in Lightspeed’s and Hopper’s latest round)
• Amongst International funds, corporate VCs such as Amazon, Intel and Hanwha have been quite active
in these rounds (i.e. Amazon invested in Thalmic Labs and Ecobee’s latest round) 22
PUBLIC SECTOR REMAINS FOCUSED
ON GROWTH IN VC AND TECH
 CANADIAN PUBLIC SECTOR SPENDING
Billions spent to promote innovation; attract & develop talent

Promoting Diversity
• The Canadian Government Budget 2018 allocated $1.4B over the next three years
to finance women-led companies through BDC
• The government introduced the Women Entrepreneurship Strategy; empowering
women to participate in the growing economy
Innovation Funding
• $0.7B was listed for the Canada Foundation for Innovation, a non-profit agency to
ensure researches have access to advanced tools
• Budget of 2018 placed $1.7B to support the next generation of Canadian
researching through institutes and grants
Creating Talent
• The Global Talent Stream pilot aims to make Canada a world-leading centre for
innovation
• The Global Talent Stream will help create more jobs and grow the middle class

Canada Start-Up Visa/ Encouraging Foreign Entrepreneurs

• Applicants to the Global Skills Strategy will be able to immigrate to Canada
as permanent residents with no conditions attached to the success of their business
• Budget 2018 allocated $4.6m for the renewal and funding of Canada’s Startup Visa
Program
24
 INCLUDING INVESTING OVER $4.0B IN BUSINESS
INNOVATION AND WORKFORCE EQUALITY
Recent Government Funding for Innovation in Canada
Date Program Name Level Amount Purpose

• Support and invest in women in entrepreneurship

Women with the goal of increasing women-owned
Mar-18 Entrepreneurship Federal $1.4bn businesses
Strategy • Includes $200m of investments in women-led tech
firms

Strategic Innovation • Accelerate innovative projects to ensure its

July-17 competitiveness
Fund Federal $1.3bn • Covers a diverse range of projects; research,
expansion, development and collaborations

• Increase the availability of late-stage funding

• Higher capital allows for additional talent and for
Venture Capital expansion to new markets
July-17 Federal $0.4bn • Supports the Innovation and Skills Plan by helping
Catalyst Initiative
innovative firms grow, supporting diversity and
promoting gender balance
• Strengthen the most promising business-led
Innovation innovation clusters by achieving their greatest
May-17 Superclusters Federal $0.9bn potential
Initiative • Supports partnering with the industry and
fostering stronger connections

25
 VCCI OVERVIEW
A top down catalyst for VC investment into startups and job creation

Government of Canadian
Fund of Funds Canadian VC’s Canadian Startups
Canada Employees

Stream 2
Stream 1 Startup
VC A 2
Startup
VC B 1
VC C Startup
Startup 4
VC D
3
VC E Startup
Startup
VC F
6
5

VCCI VC G Startup
7
Startup
8
VC H
$400m* VC I Startup
9 Startup
VC J Startup 11
VC K 10
Startup
VC L 12
Managed by
bdc Startup
VC M 14 Startup
VC N 13
VC O Startup
FOFs will raise Startup 16
capital from the 15 Startup
private sector in 17
multiples of
Tax Benefit flow back to
VCCI
gov’t from employees

• The 5 FOFs to receive investments under the Venture Capital Catalyst Initiative (VCCI) were announced in June of 2018
• Stream 1 of the VCCI allocates $350m to FOFs with the objective of maximizing returns through diverse investments
• Stream 2 allocates $50m to businesses that “challenge conventional practices” and can provide a financial return to investors
26
Source: Government of Canada *$350m allocated to FOFs while the remaining capital is allocated to profit returning investments
VCCI FUND MANAGERS OVERVIEW
A broad selection of experienced Fund of Fund managers

Provincial
Gov’t
Fund of Funds AUM (CAD) VCCI VCAP Funding* Direct Investments

$1.6B
QC

\
$850M
ON

$13B
ON

$556B

$50B
ON

Source: CVCA Infobase, PrivateCapital Journal, Company websites

*Access to provincial funding not necessarily allocated 27
 CANADA’S SUPERCLUSTERS
“The Innovation Superclusters Initiative is investing up to $950 million to support
business-led innovation superclusters with the greatest potential to energize the
economy and become engines of growth.”

Protein Industries
Supercluster A.I-Powered Supply
Focus: Agri-food enabling
Chains Supercluster
technology Focus: AI and supply chain
Impact: $4.5B+ in GDP, Impact: $16.5B+ in GDP,
4,500+ jobs 16,000+ jobs

Digital Technology Advanced Ocean

Supercluster Manufacturing Supercluster
Focus: VR, AR, data
Supercluster Focus: Digital sensors,
collection, quantum Focus: IoT, machine energy generation,
computing learning, cybersecurity automation
Impact: $5B+ in GDP, Impact: $13.5B+ in GDP, Impact: $14B+ in GDP,
13,500+ jobs 13,500+ jobs 3,000+ jobs

50,000+ new jobs Increasing Increasing New partners Growing regional

in Canada’s market Canada’s GDP by innovation in innovating together economies
$50B+ every corner of
Canada

Source: Government of Canada 28

 REGIONAL PROGRAMS
Promoting Startup initiatives beyond Ontario, QC and BC

Opportunity Calgary Saskatchewan Technology Entrepreneurship

Investment Fund Start-up Incentive (STSI) Centre- Saint Mary’s
$100m investment fund to 45% tax credit for startup University
support business growth investment $11m dedicated to
growing the province’s
entrepreneurial ecosystem

Yukon
New Brunswick Gov’t
Investing in Innovation
$54m will be invested in
the new innovation agenda
(research and development)

Alberta
Saskatche- Nova
New Innovation Hub wan Scotia
New
$2m will be invested to Brunswick
support and promote the
entrepreneurial culture of ©FreePowerPointMaps.com

innovation
29
DIVERSITY & TALENT IS
CANADA’S STRENGTH
 WOMEN IN LEADERSHIP
A few of Canada’s most inspiring women

$160M $57M Thought Leaders in

Academia
CATERINA RIZZI EVA WONG
Co-Founder & Co-Founder &
CCO COO
KAREN COLLINS
$38M $35M
Canada Research Chair

ARIEL GARTE REBECCA SHORT

Co-Founder & Co-Founder
Chief Evangelist
ANNE COLLEY
Faculty - Singularity
$31M $30M University

Kristine Steuart TANIS JORGE

Co-Founder & Co-Founder &
CEO Director JOËLLE PINEAU
Head of Facebook AI Lab
Source: Tracxn
Source: Inspiring Fifty 31
*Filtered by largest Canadian companies in the ICT sector
 WOMEN-LED TECH INITIATIVES
Several programs are starting to emerge and making a real impact

Funds Accelerators/Programs

Disruption
Ventures SheEO

“Our mission is to be “Supporting women

the starting point for with $1B in interest-
the best female free loans- improving
founders when early on the low levels of DMZ Women
stage capital is BDC Women in funding that women-led Founders
required.” 1 Tech Fund ventures receive.” 5 Accelerator
"We will invest $200 “Encouraging female
Women Founder’s million over the next Communitech leaders to pursue and
five years to help bridge
Fund by Startup Fierce Founders grow high-potential tech
the gender gap.” 2
Canada Accelerator ventures.” 6
“Since 2016, the
“We Invest in women- program has grown to
led companies in STEM, include later-stage Ladies Learning
by providing them with StandUp Ventures companies, helping
“This is an important Code
grants.” 3 them grow their
step in the evolution of “Our mission is to be
revenue base &
venture capital and in the leading resource
business.” 7
providing more capital for women and youth
to women-led to become passionate
technology builders – not just
businesses.” 4 consumers – of
technology.” 8

1 Disruption Ventures, 2 BDC , 3 Startup Canada, 4 Financial Post, 5 Forbes, 6 Ryerson, 7 Communitech, 8 Canada Learning Code 32
 DIVERSE TALENT IN CANADIAN FOUNDERS
Large proportion of Canada’s top 50 companies are led by 1st generation immigrant founders

20% of the Top 50 companies in Canada are foreign-born founders

Tobias Lutke
1
Co-Founder
Julien Billot
2
Founder

Vern Bronwell
3
Founder
Valery Tolstikhin
4
Founder
George Hadjigeorgiou
5
Co-Founder

6 John T Hargrove
Founder
Mohsen Shahini
7
Co-Founder
Coach Wei
8
Founder
Matthew Shae
9
Co-Founder
Thiago Caires
10
Co-Founder
Source: Tracxn 33
 US’S LOSS IS CANADA’S GAIN
The US has become less attractive for international talent
Exodus of International
talent to Canada

Olivia graduates from

• 43% of Fortune 500 companies were • Canada’s growing tech powerhouse has a recognized
founded by immigrants or their children1 been attracting international talent international
university and moves
• With US’ stricter visa and immigration • Startups want to avoid immigration risk and to the valley
policies, international talent looking at its lower equity holding (required for a visa);
neighboring country and locals losing faith rather grow their company in Canada3
• The US will slowly be losing its talent • Canada’s acceptance of diversity has made
it an attractive market
"Shopify (Canada) saw 40% more U.S.
applicants in the first quarter of 2017 than “Canada’s merit based system attracts highly
[they] averaged in all of 2016”2 skilled and educated immigrants”4
Olivia found the cost of
living too high and
Canada is providing support systems to new immigrants immigration too difficult

Over the past The government $4.6m has been

5 years, Canada hired allocated $400m allotted for the
800,000 immigrants to improve their renewal and funding Olivia moves to Canada and
in the job English and of Canada’s Startup brings her talent to a
market5 French6 Visa Program7 Canadian company

34
1 Forbes, 2 Globe and Mail, 3 Financial Post, 4 CBC, 5 StatCan, 6
 Canada’s World Class Universities
EDUCATION IN CANADA Business & Economics
Schools7
Computer Science8
Providing unparalleled access to talent
19 11

#1 POPULATION (%) WITH A

DEGREE
Canada has the world's highest proportion of
22
48
31
35
adults aged between 25 and 64 with a college or 53 52
university degree of 54% , compared to the 35%
MBA9 Artificial
Artificial Intelligence
Intelligence
OECD average.1
43
#1 WORLD TOP BUSINESS
INCUBATOR 48
DMZ at Ryerson University has ranked as the world 66
leading university-led incubator.2
IMMIGRANTS ATTAINING HIGHER
“With Budget 2018’s focus on investing in people EDUCATION
and ideas for a stronger, more prosperous Canada, Over half of the immigrants that have arrived 5 years
it will increase diversity in science and help develop prior to 2016 have attained a Bachelor’s or higher.5
Canada’s next generation of research leaders.”3

Canada attracts more tertiary Far Ahead OF THE OECD AVG

students from abroad (11.9%) Canada allocates 13.4% of its public expenditure on
vs. the Canadian students education, a higher % in comparison to the OECD
studying abroad (3.4%).4 average of 11.3%.6
1 StatCan, 2 UBI, 3 Gov’t of Canada, 4 StatCan,5 StatCan, 6 OECD 7 Times Higher Education, 8 Business Insider, 9 Top MBA 35
 UNIVERSITY INCUBATORS
Inspiring students and young professionals to go down the entrepreneurial route out of the classroom

“Thirty-two universities are members of the Canadian Association of Business Incubators,

a national association that supports the growth of new and early-stage businesses.”1

”The student-run fund received

$600,000 in October from Real Ventures
to invest in 24 student-led startups over
the next four years.”
36
1 CABI *CDL is also partnered with UBC, UCalgary, Dalhousie & New York University
DEEP DIVE ON CANADIAN VCS
 SNAPSHOT OF LARGEST VC FUNDS Prairie
Based on most recent fund size; Most prominent in Ontario

Atlantic

British Columbia Ontario Quebec

LEGEND Fund Size (CAD$m)

300+
200-300
100-200 Source: CVCA Infobase
< 100 Note: Rankings are per fund, not total 38
AUM per firm
 ANGEL INVESTOR LANDSCAPE
Greatest Angel activity in Quebec & Ontario

Investments and membership by region in 2017 Top 5 Angel Groups by:

Dollar Amount # of deals

1% .2%
1
24.6% 10%

74.5% 24.6%
89.8% 2

30 Investors
30 Investors
$.38 million in 5 investments $.38 million in 5 investments 4
Member Distribution
1231 Investors
Number of investments Made in 2017 $145.2 million in 370 investments 5
Value of investments Made in 2017

Average Deal Size Syndication Partners

2014 $1.229M
2015 $1.16M
2016 $1.731M
2017 $1.908M

Source: NACO
39
 MOST ACTIVE FOREIGN VCS
VCs with Foreign Head Quarters which participated in the most VC deals in Canada over the last 10 years

Investor Country # Deals

Investor S.A.R. # Deals

Horizons Ventures

Investor State # Deals Investor State # Deals Investor Country # Deals

500 Startups CA Accomplice MA
Emerald Technology Ventures
FundersClub CA Insight Venture Partners* NY
Uncork Capital* CA EnerTech Capital PA Acton Capital Partners
Social Capital CA Rho Ventures NY
OrbiMed Advisors NY Go Capital*
Accel Capital CA
Plug and Play Braemar Energy Ventures NY Point Nine Capital
Ventures* CA
Union Square Ventures NY
Highland Capital Partners MA LEGEND Number of Deals
VIMAC Ventures* MA 15+
NGEN Partners* NY 10-14
BOLDstart Ventures NY 7-9
Source: CBInsights
*Recently active / made the list in 2018 40
 CANADIAN INSTITUTIONAL INVESTORS
Most Active Canadian Financial institutions; per direct VC investments over the last 2 years

Private Public
Investor Investor Type Investor Investor Type

Asset/Investment
Holding Company
Management

Bank Diversified Financial Services

Diversified Financial
Services
Diversified Financial Services
Holding Company
Holding Company
Asset/Investment
Management
Bank
Bank

Asset/Investment Public-Private Partnerships

Management
Investor Investor Type
Advisory Public-Private Pension Fund

Holding Company Public-Private Pension Fund

Source: CBInsights
*New additions since 2017 report
41
 MOST ACTIVE CORPORATE VCS
Most Active Corporate venture capital groups in Canada in the last 18 months

Direct Investment Select Canadian

Corporate VC Sectors
Investment in VC fund Investments
Automation; CRM; Energy
1 Efficiency; Healthcare; Enabling
Technologies
X X
Cloud computing; CRM;
2 Enterprise Software X
3 ICT X
Sustainable vehicles; mobility
4 service; autonomous driving X
Voice technology innovation;
5 Hardware for Alexa X
6 ICT X
Pharmaceutical; Medical
7 Devices; Consumer Healthcare X
ICT; Healthcare; Energy, Lighting
8 and IoT; Manufacturing X
Improvements to Agricultures
9 from biotechnology to software X X
Transportation; big data;
10 Insurance tech X
Source: CBInsights
*New additions since 2017 report
42
 INTRODUCTION TO WHITE STAR CAPITAL

White Star Capital

We invest in ambitious entrepreneurs on both sides of the Atlantic. We have founded, scaled and sold
many successful technology businesses. We leverage our collective experience, expertise and global
network to help our startups succeed.

GLOBAL PRESENCE AND PORTFOLIO

www.whitestarvc.com