Our objective for this report was to analyze the ten-year trajectory of tech companies launched in 2008 in select jurisdictions around the world. We would like to express our thanks to MaRS Data Catalyst who sponsored this report.
We looked at 2,429 companies created in 2008 in Canada, the US, France, Germany, and the UK; 983 were recorded by Crunchbase as having obtained capital of over $100,000 to fuel their growth. We looked at this subset in more detail.
Based on our analysis of the Class of 2008, we found the following:
- The average funding received by Canadian companies in the last ten years ($15.5M) is in second place behind the US ($25.2M),
- Canada is strongest in funding Technology companies including software, hardware and mobile, but is lagging the US in the number of health tech companies created and our average funding per health tech company is weak.
- Our companies go through fewer rounds of financing.
- Our average time to first funding is longer than that in the US.
- Our firms, having raised less, have lower employment levels.
- In terms of those that successfully exited, our companies exit significantly earlier in terms of how much they raise. And when they IPO, they end up with significantly lower revenue and a much lower valuation.
What does this mean for the Canadian tech space? If we want to create more world-class companies, we will need to ensure that our tech companies get funding sooner and in larger amounts to be able to drive growth.
This report was sponsored by MaRS Data Catalyst and we would like to thank them for their support and advice.
You can get a full copy of the report here.