CVCA confirms weak VC data for first half of 2007

In a press release earlier today, the Canadian Venture Capital and Private Equity Association (CVCA) confirmed the negative trends identified here a couple of weeks ago (see post “Brutal venture capital stats for H1 2007“, August 1-07). The Globe & Mail covered today’s release here.

Of particular concern is Ontario, which saw a 55% drop from the prior quarter according to the release. The first quarter was, in my view, tilted by the massive $160 million Geosign investment. Perhaps the “core” Q/Q figures are more stable than the data suggests, even if the 2007 results as a whole are still well below prior years – particularly in the information technology sector.

Twelve more deals were announced in July according to Thomson Financial, with about $69 million of total disclosed funding, things haven’t gone totally quiet. Although Ontario landed just two of the twelve.

It may well be time for a national summit on VC investing. The agenda could include: what do the LPs want from the GP community; what, if anything, are the entrepreneurs not getting from the industry; what can be done to improve the commercialization rates of university-generated technologies and life science advances; what the various levels of government can do to help stimulate a key engine in Canada’s economy….

MRM
(disclosure – I’m a director of the CVCA)