Réseau Capital today announced the results for Quebec’s venture capital industry for 2007, as compiled by Thomson Financial Canada.

Deal activity in Quebec’s venture capital (VC) market grew for the third year in a row in 2007, reaching its highest level since 2002. Dollars invested totalled $648 million, up 8% from the $600 million of 2006.

More Quebec-based companies were financed with VC as well, with these numbering 189 in 2007, up 6% from the year before.

Quebec’s share of all disbursements in Canada was 31% in 2007, a level well above its historical average. Quebec also accounted for the lion’s share of companies financed in the country, or 46%.

Quebec-based companies in expansion, or at a late stage of development, were at the centre of VC activity in 2007. Late-stage activity as a whole saw a total of $426 million invested in 134 companies, or two-thirds of all disbursements in Quebec, and 27% more than the $336 million of 2006.

Early-stage VC involving seed and startup activity fell to its lowest level since the mid-1990s, in both real and relative terms. Seed deals captured $10 million, or less than half of the $23 million invested in 2006, and startup deals, $64 million, down 42% from the $111 million invested in 2006. Together, seed and startup activity accounted for only 11% of all disbursements in Québec in 2007.

According to Charles Cazabon, president of Réseau Capital and vp, venture capital, of BDC, “Despite Quebec’s fine performance in terms of dollars invested, the decrease in seed and startup venture capital activity is worrisome, since these investments allow the development of the industry leaders of tomorrow.”


Réseau Capital – the Quebec Venture Capital and Private Equity Association – has more than 525 members who represent public and private venture capital companies, as well as firms of professionals serving the industry.