Measuring the Financial Velocity of Canada’s Leading Tech Companies

Emerging technology companies that wish to attain a significant share of global markets must be able to attract substantial financing. Certainly, this has been the trend for the high-profile group of startups also known as Unicorns. A Unicorn is defined as a private company with a valuation at or above $1 billion. All of these firms have been propelled to world-class status by significant injections of early- and late-stage venture capital (VC) funds.

In order to provide a tool to enable entrepreneurs and investors to gauge how attractive firms are from a financial standpoint, we have, in this report, introduced a way to measure Financial Velocity. Financial Velocity is defined here as the amount of funding a firm has raised divided by the number of years it has been in existence. It is expressed in millions of dollars per year. This measure reports the rate at which companies raise and consume capital.

We have assembled a list of the top Canadian businesses based on Financial Velocity and are pleased to introduce the Narwhal List. (The term Narwhal was first coined by Brent Holliday of the Vancouver-based Garibaldi Capital Advisors who graciously allowed us to use it.)

The Narwhal List identifies a set of young Canadian companies that have the potential to become companies on the world stage. It also points to possible financial pathways to turn these companies into Unicorns, which are closer to reaching public financial markets. The transition to the Unicorn scale and possibly public listings may give our firms the ability to compete on their own merits and have the currency necessary in public stock to fund acquisitions throughout the world that will lead to greater scale and world-class status.

A full up-to-date list of Narwhals is published at The following Impact Brief describes our methodology and compares our Narwhals to Unicorns.

Share This