Feb 19, 07:09 PM

Venture Capital and Private Equity Thrive in 2024, ICT Sector Leads with CAD $15.3B

The venture capital (VC) and private equity (PE) landscape in 2024 experienced notable shifts. VC-backed deal value increased by 25% after two years of decline, with $7.86 billion raised across 592 deals. However, early-stage funding faced challenges, with pre-seed and seed investments dropping to CAD $510 million, the lowest in recent years. Median valuations for early-stage startups rose modestly, but top-tier valuations surged by over $50 million year-over-year, reflecting a widening gap between the most funded startups and others. The rate of 'down rounds,' where startups raise funds at lower valuations, reached 20% over the past two years, up from 10% between 2019 and mid-2022. Meanwhile, PE activity reached $27.5 billion across 658 deals, with Q4 marking the most active quarter in a decade. The ICT sector led investments in both VC and PE, attracting CAD $15.3 billion in capital. Venture debt reached an all-time high, though deal counts fell to 2017 levels, suggesting fewer but larger deals. These trends highlight a bifurcated market, with strong activity in later-stage funding and challenges in early-stage capital access.

#ICT

Written with ChatGPT (GPT-4o).

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