Market Trends of North America Venture Capital Industry
Canada Increasing Venture Capital Scenario is Fueling the Market
As per the Canadian Venture Capital and Private Equity Association, USD 4.9 billion was invested across 520 deals in Canada last year. Post-COVID-19 early-stage and growth-stage deal sizes observed a decline with an increase in average deal size for investments in pre-seed, seed, and later stages. Ontario, Cubic, British Colombia, and Alberta exist as the Canadian regions with the highest value of venture capital deals with a value of more than CAD 9,500 Million.
ICT exists among the Industries in Canada, with the largest number of venture capital deals existing at 381 deals last year; this is followed by deals in Life Science, Agribusiness, and cleantech and is expected to drive the North America Venture Capital Market Over the coming period.
Fintech Expansion In United States is Driving the Market
North America leads globally in terms of the number of fintech startups, with Europe and Asia-Pacific following next. Open Banking, Digital lending, Artificial Intelligence, Cybersecurity, and Blockchain are among the fintech investments driving the Venture Capital market in the United States. Recently, in the United States, Credit card FinTech company Petal closed a committed USD 200 million debt facility from Victory Park Capital (VPC), emerging as the largest Venture Capital funding in the region.
Stripe, Chime, Ripple, Plaid, and Brex had emerged as leading fintech unicorns in the United States with a combined market value of USD 125 Billion. This has led to more fintech startups coming over and raising demand for Venture capital investment.
