Forecast the Financing Climate with Osler’s Latest Deal Points Report: Venture Capital Financing

Osler’s Deal Points Report leverages data from confidential, anonymized sources to provide unique insights into typical and atypical transactions in the Canadian market. Unlike other reports, it offers comprehensive financing-related information that surpasses publicly available data or third-party submissions.

The report highlights a significant trend: a high concentration of investment in Seed and Series A companies. This indicates good health in the Canadian tech ecosystem, despite recent challenges. New investors are putting large sums into early-stage companies, endorsing a positive outlook for Canada’s economy.

Expert Insights

Michael Grantmyre, a Partner at Osler and co-author of the report, emphasizes the resilience and renewal of the Canadian tech industry. “Despite the economic headwinds, we’re seeing the needle move with early-stage companies receiving funding and continued evolution in emerging tech sectors, including cleantech, healthtech, and AI,” says Grantmyre.

Success Stories

Raven Indigenous Capital Partners: Despite a tough 2023 for many venture capital firms, Vancouver-based, Raven Indigenous Capital Partners experienced unprecedented activity in the latter half of the year, continuing into 2024. Chief Investment Officer Stephen Nairne notes that after a stalled first half, the fourth quarter saw a “real re-opening” of investments, with six deals currently in progress. Raven focuses on health tech, AI, data science, and educational technology, prioritizing Indigenous Peoples’ wellbeing. Over half of their current deals involve women founders, reflecting their commitment to diversity and economic reconciliation. Nairne highlights the resilience of Indigenous founders, especially during COVID-19, and advises focusing on business fundamentals and cost control for the year ahead.

Ontopical: Based in Calgary’s tech hub, Ontopical helps companies win government business by detecting early signs of new opportunities through vast amounts of raw data from over 16,000 municipal councils and other authorities. CEO Clayton Feick explains that their AI model, Oliver, sifts through nearly one million pages weekly, identifying early business opportunities before the RFP stage. Despite venture capital challenges, Ontopical secured $3.3 million in seed extension financing in 2023. Looking ahead, they aim to expand their team and announce new partnerships in 2024. Feick credits Osler’s legal support, particularly from Michael Grantmyre, in their successful financing efforts and advises founders to leverage Alberta’s supportive tech ecosystem during economic slowdowns.

Key Takeaways for Entrepreneurs

For founders, especially those who have faced setbacks, this report is a crucial tool. It helps navigate the complexities of raising financing, providing a vital guide to overcoming key hurdles. While not a replacement for legal advice, it arms start-ups with the knowledge to succeed. The Prairies show promising growth, reinforcing the robustness of the tech landscape. Staying informed with real-time data and reports like Osler’s is essential for navigating the current financing environment and seizing future opportunities. You can subscribe to receive insights and events of Osler’s Emerging and High Growth Companies division.