Quebec Venture Capital Investments Up 12% In 2005, Says Reseau Capital

Venture capital activity in Quebec grew to $710 million in 2005, up 12% from the $635 million disbursed in 2004, reports Reseau Capital. Industry cash went to 297 firms, reflecting an expansion of 15% over the 258 companies financed one

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Venture capital activity in Quebec grew to $710 million in 2005, up 12% from the $635 million disbursed in 2004, reports Reseau Capital. Industry cash went to 297 firms, reflecting an expansion of 15% over the 258 companies financed one year ago.

The fourth quarter of 2005 experienced particular growth activity in, as $205 million was invested in 110 companies, up by 45% from the $141 million invested in 80 companies during the same quarter in 2004.

Quebec-based activity ran somewhat ahead of the Canadian industry as a whole, which saw a total of $1.8 billion invested in the past year, a level that effectively matches disbursements made in 2004. As a result, Quebec captured a higher proportion of national industry activity this time, accounting for 39% of total capital invested and 50% of companies financed.

“We’re the Canadian venture capital leaders, and I’m very pleased to see that Quebec is so active,” said Lucien Bergevin, president of Reseau Capital and senior vice president. “Venture capital activity is showing clear signs of a recovery, and IT and healthcare have definitely benefited.”

Firms in information technology sectors took the lead in venture capital industry growth trends in Quebec in 2005, making up $244 million of investments. However, its take of total capital invested in Quebec fell over the same period, from 37% to 34%.

For investments in life science sectors, $196 million was disbursed to 41 companies, up 12% from the $175 million that was disbursed to 51 companies in the prior year. Life sciences’ 28% share of capital invested in Quebec was unchanged on a year-over-year basis, however.

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