News Summary

In 2024, Canada’s venture capital market experienced a year marked by patience and recalibration, as reported by Osler’s 2024 Deal Points Report. The report highlights a shift towards longer timelines and more selective investment strategies, with total dollars invested rising to $3.73 billion USD across 160 deals, up from $2.2 billion USD in 2023. The market saw a higher concentration of capital invested in mega rounds and an increased focus on late-stage, revenue-generating businesses. Despite these trends, early-stage financings, particularly at seed and Series A stages, remained prevalent. The report also notes the return of secondary activity in later stage financings and a higher concentration of AI financings. The Bank of Canada’s stable interest rates contributed to a more predictable economic environment, allowing dealmakers to adopt a more measured approach. Looking ahead to 2025, the report anticipates increased merger and acquisition activity, as well as continued challenges in the fundraising environment.