CANADIAN VENTURE CAPITAL

LANDSCAPE
 A WORD FROM OUR CANADIAN PARTNER
Authors/ Contributors
Jean-Francois Marcoux
Co-Founder & Managing Partner Sanjay Zimmermann
WHITE STAR CAPITAL Associate
“Canada has it all. Nothing
“We are proud to be a partner of choice for Canadian can’t be built here”
entrepreneurs. The Canadian ecosystem is building some
amazing companies with global ambitions, led by hustling
founders and talented world-class teams”

In this report, we aim to share our enthusiasm on the Canadian Joshuah Lebacq
tech and Venture Capital ecosystem. Summer Associate
“Canada has a closely-knit
We begin by outlining why we are bullish about Canada which ties yet extensive VC ecosystem.
into the strong momentum in successful exits, large funding Great things will continue to
rounds and increased presence of tech giants entering the market. come from Canada”
Then, we look at two unique Canadian advantages stemming from
clever public sector support and access to deep talent pools.
Finally we end with a deep dive on VC’s and other investors
making up the space.

At White Star Capital, we started investing in Canada in 2007 and External Data Sources
have made over 10 investments since and are looking forward to
many more. We hope you enjoy reading this report!

2
 TABLE OF CONTENTS

1. Overview: Why We Are Bullish About Canada Page 5-7

2. Canadian Ecosystem Continues to Gain Momentum & Support Page 8-16

3. Public Sector Continues to Prioritize Growth in VC and Tech Page 17-20

4. Canadian Talent Amongst the Best in the World Page 21-23

5. Deep Dive on Canadian VCs Page 24-34

3
OVERVIEW: WHY WE ARE BULLISH
ABOUT CANADA
 VC FUNDING HAS DOUBLED SINCE 2014 IN ICT1 AND
HEALTHCARE, LARGER DEALS A REALITY IN CANADA
Industry expertise and successful start-up activity in Canada
has captured the attention of investors. Canada experienced
record VC funding in 2016, and the momentum continues in
2017. In fact, the total amount of funding per year has nearly
doubled since 2014.
The increase in quantity of funds and quality of startups has
made it possible to fund larger rounds – something that was
previously a challenge in Canada. Furthermore. the country
has seen the average deal size increase over the last few
years.

VC-backed funding in Canada has nearly H1-2017 marks a record for the total
doubled since 2014 funding allocated to the 10 largest deals

$3.3B Total funding percentage captured by the top 10 Canadian Deals

$3.2B
34% 35% 40%
31%
23%

2013 2014 2015 2016 H1 - 2017

Source: CVCA Newsletter

$2.3B VC-backed funding

10
8
$2.0B 6
$1.9B 4
2
0

2013 2014 2015 2016 2017E 2 Average Deal ($m) Median Deal Value ($m)
Source: CVCA
Source: CBInsights
Note 1: Information and Communications Technology
Note 2: 2017E based on two times 2017 H1 actuals 5
 THE PERCENTAGE OF DEAL VOLUME AT THE
SEED-STAGE HAS INCREASED BY 66%
As a greater percentage of funding value is captured by the
largest Canadian deals, Canada has also experienced 66%
increase over the last 10 years of the percentage of total deal
volume captured by Seed-stage funding.
This is a positive indicator for Series A and later stage funds as
an increase in the number of Seed financing deals implies
more prospective investments at later stages further enabling
VC-backed exits opportunities to grow in-line with total
Canadian exits.

% of Canadian deal volume per stage, The number of Canadian exits has been
per year steadily rising year-over-year since 2009
100%

90% 724

80%

70%
517
60% 471
444

50%
291
40%
233
30% 165

20%
59
31 25 29 31 29 44
21 24
10% 8 12

0% 2009 2010 2011 2012 2013 2014 2015 2016 2017E

Number of exits in Canada (VC Backed)

Number of exits in Canada (Total)
Seed Series A Series B Series C Series D+
Source: CBInsights
6
 CANADA SITS WITH TOP REGIONS FOR
VENTURE DEALS AND CONTINUING TO GROW
Top Regions for Venture Deals (excluding US)*
CAGR Deal Volume
Region Total Deal Amount (Q2 17) Total Deal Volume (Q2 17) (2014-2016)

U.K. $1.4B 208 +4.0%

France $622M 141 +27.7%

Israel $526M 59 +3.6%

Canada $404M 97 +5.0%

Germany $292M 89 +11.3%

*Western Hemisphere only, VC deals Angel round through Series E+

Source: CB Insights 7
CANADIAN ECOSYSTEM CONTINUES
TO GAIN MOMENTUM & SUPPORT
CANADIAN TALENT ATTRACTS CORPORATE VCS IN A
VARIETY OF INDUSTRIES
Canada is known for Video Games (Ubisoft has a flagship office in Canada also excels in a number of other industries attracting
Montreal), Aerospace (Bombardier, Pratt & Whitney), and numerous corporate venture capital firms (CVCs). Classifying
Artificial Intelligence (Canadian Researchers invented Neural the most active CVCs in Canada over the last ten years by
Networks – the latest trend in AI securing millions of dollars in industry provides insight into which industries attract CVC
investments.) investments – and what industries are deemed as innovative in
Canada by CVCs.
Most Active Corporate VCs in Canada Over the Last 10 Years, By Sector
Advanced Manufacturing and Energy Healthcare
• Next47 (Siemens) • BlueCross BlueShield Venture Partners
• GE Ventures • Pfizer Venture Investments
• Chevron Technology Ventures • SR One (GlaxoSmithKline)
• Inversiones Financieras Perseo • Johnson & Johnson Innovation

Telecom Voice Technology

• TELUS Ventures • Amazon Alexa Fund
• Deutsche Telekom Strategic Investments
• Innovacom (France Telecom)
• Verizon Ventures

Automotive Digital Media

• Robert Bosch Venture Capital • Bertelsmann Digital Media Investments
• Motorola Solutions Venture Capital • Burda Digital Ventures (Hubart Burda Media)
• BMW i Ventures

Technology Enterprise Software

• Intel Capital • Bloomberg Beta
• In-Q-Tel (Central Intelligence Agency) • Salesforce Ventures
• GE Ventures • Cisco Investments
9
Source: CBInsights
 INDUSTRY LEADERS HAVE BEEN INCREASING
THEIR RELIANCE ON CANADIAN TECH TALENT
Tech Giants are acquiring Canadian startups
from coast to coast
US Giants are expanding their R&D and Tech Giant acquisition presence per province over the last 10 years
Operations teams in Canada
Cloud Computing
• Google built its first Canadian cloud computing facility in
Montreal
• Amazon Web Services has opened a cluster of data
centers near Montreal
Artificial Intelligence Source: CBInsights

• Thomson Reuters announced it would open a center for And are financing Canadian ventures at an
“cognitive computing” in Toronto accelerated pace
• Major technology companies, like Google, Microsoft and
IBM, are adding to their A.I. research teams in Canada • Tech firms have not limited their activity in Canada to
expanding their operations, they have also invested in
• Google DeepMind opened its first ever international AI
research office in Edmonton
Canadian ventures.
• Google Brain has expanded to Montreal and Toronto • Microsoft ventures and Amazon Alexa Fund have invested in
an equal or greater number of deals in Canada as in the
Autonomous Vehicles entirety of Europe over the last 5 years (YTD)
• Uber announced the establishment of a new Toronto Tech Giant Venture Capital Financing over the last 5 years
research hub dedicated to the development of self-driving Europe Canada
vehicles
Google Ventures 5 1
• General Motors said it was going to locate one of its
research and engineering hubs for self-driving cars in Microsoft Ventures 2 2
Toronto Amazon Alexa Fund 0 3
Source: Tracxn 10
 ICT SECTOR DOMINATES VC-BACKED ACQUISITIONS,
TOP TRANSACTION SIZE DOUBLES IN H1-2017

2016 2017
Bit Stew Systems Inc Sandvine
Founded in 2005 Founded in 2001
$200m Platform for Software Defined Operations for $444m
Intelligence web traffic optimization.
the Industrial Internet
Burnaby, BC Waterloo

Bitstrips
BlueCat Network
Founded in 2007 Founded in 2001
$64m $400m
DNS and DHCP appliance and security solution
Emoji and sticker generation app
Toronto, ON Toronto

Radial Point
Founded in 1997 Luxury Retreats
Founded in 1999
Undisclosed Sales and technical support services to ISVs and
Luxury Villa Rentals
$310m1
service providers
Montreal, QC Montreal

QuickPlay Media Maluuba

Founded in 2003 Founded in 2011
Undisclosed Distribution of multi-screen video to IP-
Deep learning/machine learning
$175m2
connected devices
Toronto Waterloo

1 Based on CVCA reported exit value of C$393m

2 The Maluuba deal value was undisclosed. However, the value is estimated to have been of approximately US$175m
Source: Tracxn
11
 CANADIAN START-UPS ARE LEADING IN HIGH
POTENTIAL FIELDS
In High-Growth Sectors In Emerging Sectors
Ecommerce 1 Quantum Computing
• Shopify • D-Wave

Powers over 500,000 businesses around D-Wave is the leader in the development and
the world with over $40B in goods and delivery of quantum computing systems and
services sold over the platform software, and the world’s only commercial
supplier of quantum computers
Total Raised: $360m, Valuation: US$10.7B (Aug, 2017) Total Raised: $182m
Marketing Tech Robotics
• Hootsuite • Thalmic Labs

Over 15 million users and the world's top
brands use Hootsuite to connect with
multiple social networks and hundreds of
apps
Total Raised: $230m, Valuation: $750m (Sept, 2014)
Thalmic Labs is reimagining human-computer
interaction with products such as its wearable
gesture control armband, Myo, which lets you
control your phone, computer, and more, touch-
free.
Total Raised: $135m

And Attracting Multiple Investments From Leading Global VC Firms

(Example of top investment firms which invested multiple times in Canadian ventures over the last 10 years, according to Tracxn) 12
Source: CBInsights
 TOP FUNDED CANADIAN ICT COMPANIES, WHICH
RECEIVED FUNDING OVER THE LAST 10 YEARS
Total Funding
Company Founded
(US$M)
Industry Sub-Industry
2004 360 eCommerce eCommerce enablement
1987 355 Telecom Devices & Equipment -
2004 318 Internet Software & Services Real Estate
2008 230 Internet Software & Services Business Intelligence & Analytics
1999 182 Supercomputers -
1999 165 Internet Software & Services Education & Training
2000 162 Fiber Optics -
2004 147 Biotech -
2012 135 Consumer Electronics -
2005 126 Mobile Software & Services Point of Sale
1992 122 Internet Software & Services Scientific, Engineering
2009 116 Mobile Software & Services Social
1999 109 eCommerce Home Furnishings & Improvement
2016 102 Consulting & Outsourcing Management & Strategy Consulting
2007 99 Mobile Software & Services Travel
2010 92 Internet Software & Services HR & Workforce Management

Note: Excludes funds raised during an IPO

Source:CBInsights 13
 ICT SECTOR ALSO DOMINATES TOP CANADIAN
VC-BACKED IPOS, IPO SIZES INCREASE
In line with exits through acquisition, ICT sector
companies have been the largest Canadian VC-
Backed IPOs every year of this decade.
Furthermore, Canadian VC-Backed IPOs have seen
continuous growth in the size of the largest IPO per
year over the same period

Canadian VC-Backed IPOs from 2011 to H1-2017

$42m1 $97m2
$25m1
$101m1 $131m2 $157m1
$58m2 $46m2 $5m2 $87m1

2011-2013 2014 2015 2017

Legend: ICT Sector Other Sectors

Note: There were no Canadian IPOs in 2012 or in 2016, Does not include Reverse Takeovers (RTOs) or Reverse Mergers
14
Source: 1 CVCA Infobase 2 CBInsights
 CANADA EXPERIENCED RECORD VC FUNDING IN 2016,
AND THE MOMENTUM CONTINUES IN 2017
Notable Recent ICT Canadian Deals, based on deal value
2014 2015 2016 2017

Series E
Series C Series B
Series B $200M
$61M $140M
$85M 1999
2005 2012
2009 Quantum computing and
SaaS Retail Management Wearable Technology
Learning Management System superconducting electronics
Montreal Kitchener
Kitchener Burnaby

Series C Series C
Series B Series D
$103M $111m
$55M $60M
2005 1995
2003 2004
Precision agriculture and data- Integrated EHR platform for
Fraud Detection, Anti-Money Residential Appraisal Platform
management long term providers
Laundering Solution Markham
Winnipeg Toronto
Newfoundland

Element AI
Hopper
Series A
Series D Series C
$102M
$50M $95M
LEGEND 2016
2009 2007
Launches and Incubates
Mobile Messaging App Predicts airfare
advanced AI Solutions
Toronto Montreal
Montreal
<$100m

>$100m Series D Series C Series D

$45M $77m $95M
2007 2007 2010
Autonomous Hovering Aerial Digitalization of circulars/flyers cloud-based analytics
Imagery Toronto Vancouver
Waterloo 15
Source:Tracxn
 CANADA STILL HAS CHALLENGES
Scaling
Late Stage Funding
• There remains a lack of VCs capable of supporting large
later-round investments, and many VCs do not possess
the experience in scaling late-stage companies and
creating tech champions.
Shallow Talent Pool of Senior Talent with
Scaling Experience
• The lack of experienced senior executive talent,
particularly in sales & marketing, is a major barrier for
many tech firms seeking to scale.
Lack of $1B+ Tech Companies
• The failure of Nortel and the downsizing of Research in
Motion ( Blackberry phones) have left voids in the
Canadian Tech ecosystem.
• The lack of technology firms with annual revenues of at
least $1B is a significant barriers to the industry as such
giants are required in a healthy ecosystem
Geographic Distribution
Silicon Valley Allure
• Tech talent and entrepreneurs believe the best
opportunities are in the Valley and remain attracted by
the higher salaries, powerful brand names, and larger VC
and tech ecosystems
Geographic Distribution
• Venture Capital in Canada is Focused in Montreal,
Toronto-Waterloo, and Vancouver - leaving the rest of the
country underpenetrated
Canadian Mindset
“Smaller Dreams” Mindset
• Canadian entrepreneurs tend not to dream big enough
• Researchers and teachers do not often have a “mindset”
towards commercialization
• Founders are tempted to take a smaller exit sooner
• Lack of ambition for global scaling
• Mindset that $100 million is a great exit, rather than
striving to be a unicorn
16
PUBLIC SECTOR CONTINUES TO
PRIORITIZE GROWTH IN VC AND TECH
 CANADIAN PUBLIC SECTOR SPENDING BILLIONS TO
PROMOTE INNOVATION; ATTRACT AND CREATE TALENT
Innovation Funding
• The creation of a $1.26 billion five-year Strategic Innovation Fund
• $380 million over three years for Business Development Bank and the Economic
Development Corporation to provide equity financing.
• $75 million over two years to solve cleantech challenges, $300 million over 11 years for smart
cities challenges.
• Canadian governments have recently invested over $500m in AI in Canada
Research and development funding
• The Scientific Research and Experimental Development program (SR&ED) hands out about
$4-billion annually to companies of all sizes in Canada
• The base federal rate for SR&ED refunds is 35 per cent, but almost all the provinces and
territories add some top-up funding for companies in their jurisdiction. For example, in
Ontario there is an extra 10 per cent available while in Quebec as much as 35 per cent
Streamlined Skilled-Visa Process
• The federal government first unveiled its Global Skills Strategy in early November during its
fall economic update, which included a standard processing time of 10 days to two weeks for
work permit visas.
Canada Start-Up Visa:
• Successful applicants to this program will be able to immigrate to Canada
as permanent residents with no conditions attached to the success of their business.

18
 INCLUDING INVESTING OVER $500M IN AI TO
MAINTAIN CANADA’S LEAD
Recent Government Funding for Artificial Intelligence in Canada
Amount
Date Program Name Level Purpose
($m)
• Academic and entrepreneurial AI funding in
May-17 Quebec AI Cluster Provincial $100 Quebec
• Institute to advance artificial intelligence (AI) and
big data
Jun-16 IVADO Federal $94 • Goal of Creating computers with quasi-human-
level performance.
• Attract and retain top academic talent in Canada
Pan-Canadian Artificial • Increase the number of post-graduate trainees and
Intelligence Strategy researchers studying artificial intelligence
Mar-17 Federal $125 • Promote collaboration between Canada's main AI
(administered by
CIFAR) centres (Montreal, Toronto-Waterloo and
Edmonton

• Enable transformative knowledge by catalyzing

Mar-17 CIFAR Federal $35 global networks of the world’s pre-eminent
researchers
• Expand the applications of AI through explorations
VECTOR Institute for Federal &
Mar-17 $100 in deep learning and other forms of machine
Artificial Intelligence Povincial learning

19
 FEDERAL GOVERNMENT PROGRAMS PROMOTE
VC INVESTING BY MINIMIZING DOWNSIDE RISKS

VCAP Recap
• The Venture Capital Action Plan (VCAP) rolled out in Jan. 2014
• The Canadian government injected C$450m in 4 Funds of Funds (FOFs) and C$50m in VCs
• Private investors then invested C$906m in the 4 FOFs
• 21 Canadian VC funds received funding from the 4 FOFs or from VCAP

VCCIVCCI Recap
Recap
• The 2017 Federal Budget pledged to inject C$400m in the new Venture Capital Catalyst Initiative
• The federal government was in the process of holding consultations until July 17, 2017

*Percentages are for illustration purposes only 20

CANADIAN TALENT AMONGST THE
BEST IN THE WORLD
 Canada’s World Class Universities

EDUCATION IN CANADA Business Schools5 Computer Science6

23 10

#1 POPULATION (%) WITH

HIGHER EDUCATION
Canada has the world's highest proportion of
25
27
23
31

working-age adults who have been through higher 30

education - 55% compared with an average in
35 Artificial Intelligence
OECD countries of 35%. 1
40
#3 SCIENCE PHDS
Over 55% of Canada’s PHD graduates are in STEM,
60
64
far exceeding the OECD average of 50% 2

#4 NUMBER OF AI STARTUPS
Canada placed fourth in total funded AI startups
TOP 5 PRIMARY EDUCATION
One of only 5 countries to rank in the top 10 in the
(45 total) in 2016 3 world in Math, Science and Reading 4

#6 ICT SPECIALISTS Far Ahead OF THE US & UK

4.7 percent of Canada’s total workforce were ICT
specialists, the sixth highest among its peers. 2
Source: 1 BBC, 2 OECD, 3 Accenture, 4 PISA, 5 Poets & Quants, 6 Times
Canada's teenagers are among the best educated in
the world – far ahead of similar countries such as the
U.S., U.K, and France 4
22
 CANADA’S EDUCATION SYSTEM HAS CONTRIBUTED
TO SOME OF THE WORLDS TOP TECH INNOVATORS
Prominent Tech Innovators educated in Canada Exodus of West Coast
Talent Back to Canada

Stewart
Elon Musk Vitalik Buterin Butterfield
• Founded Slack
• Founded: Paypal, Tesla, • Co-founded Etherum in Canada Ted Graduated
from Waterloo
Space X, Solar City, The and Bitcoin magazine
Boring Company • Dropped out of the
• Studied at Queen’s University of Waterloo James Gosling
University from 1992 to in 2014 when he
1995 received the $100,000 • Creator of Java Moved to San Francisco to
Thiel Fellowship get a higher net salary

Top AI Researchers who teach in Canadian Universities

Ted found the cost of living
too high and the quality of
Geoff Hinton Yoshua Bengio Richard Sutton life too low

• Emeritus Professor at the • Full Professor at the • Professor at the

University of Toronto University of Montreal University of Alberta
• Engineering Fellow at • Co-founder of Element • Leader of Google’s
Ted moves back to Canada
Google, manages Brain AI Deepmind Alberta and brings his tech
Team Toronto experience to a Canadian
Startup 23
DEEP DIVE ON CANADIAN VCS
 LARGEST CANADIAN VC FUNDS, BASED ON
Prairie
MOST RECENT FUND SIZE

Atlantic

British Columbia Ontario Quebec

LEGEND Fund Size (CAD$m)

300+
200-300
100-200
Note: Rankings are per fund, not total AUM per firm
< 100 25
Source: CVCA Infobase
 SNAPSHOT OF CANADIAN VC FUNDS

Firm Investment Top Canadian Portfolio Companies Top Exits

Sectors
AI, Analytics,
Security

Retail, Fintech,
Biotech,
Transportation

Agnostic

Fintech, IoT, AI,

Ecommerce

Mobile, Internet
software

IT, Commerce,
Communication

Enterprise
applications
26
Source:Crunchbase
 SNAPSHOT OF VC FIRMS AT THE SEED STAGE

Firm Investment Top Canadian Portfolio Companies Top Exits

Sectors

Agnostic

Agnostic

ICT, CleanTech,
Healthcare

Agnostic

Agnostic

Agnostic

27
Source:Crunchbase
 ANGEL INVESTOR LANDSCAPE
Investments and membership by region in 2016 Top 5 Angel Groups by:
Dollar Amount # of deals

Average Deal Size Syndication Partners

28
Source:NACO
 THE EMERGENCE OF SPECIALIZED VCS
The evolving Canadian VC ecosystems has grown to include
venture capital firms which have adopted unique angle. Certain
VCs have concentrated their efforts on a specific investment
sector such as those listed below.
Others have adopted unique business models such as
Brightspark Ventures – a venture capital firm which takes a
unique approach to fundraising. Albeit these firms are neither
the largest nor the most active, they fill unique voids in the
Canadian ecosystem.

Investment
Firm Top Canadian Portfolio Companies Unique Angle
Sectors

Fintech Incubator model

Fintech Backed by Power Corp.

IoT Industrial IoT focussed

Deep Tech Deep tech focused

29
Source:Crunchbase
 MOST ACTIVE FOREIGN VCS
VCs with Foreign Head Quarters which participated in the most VC deals in
Canada over the last 10 years
Investor Country # Deals
White Star Capital

Investor S.A.R. # Deals

Horizons Ventures

Investor State # Deals Investor State # Deals Investor Country # Deals

500 Startups* CA Accomplice MA
Emerald Technology Ventures
FundersClub CA Braemar Energy Ventures NY
SoftTech VC CA Union Square Ventures NY Acton Capital Partners
Social Capital CA Rho Ventures NY
Point Nine Capital
Accel Partners CA EnerTech Capital PA
Foundation Capital CA Bessemer Venture Partners NY TVM Capital Life Science
*On July 31st, 2017 500 Startups Canada announced Highland Capital Partners MA
they would be terminating their fund)
OrbiMed Advisors NY LEGEND Number of Deals
RRE Ventures NY 15+
SOSV NJ 10-14
BOLDstart Ventures NY 7-9

30
Source:CBInsights
 MOST ACTIVE FINANCIAL INCUMBENTS/INSTITUTIONS,
PUBLIC AND PRIVATE, AS PER DIRECT VC INVESTMENTS
OVER THE LAST 2 YEARS

Private Public
Investor Investor Type Investor Investor Type
Diversified Financial
Services Bank

Asset/Investment
Asset/Investment
Management
Management
Bank
Diversified Financial Services
Diversified Financial
Services
Diversified Financial Services
Advisory
Asset/Investment
Asset/Investment Management
Management

Diversified Financial Public-Private Partnerships

Services
Investor Investor Type
Diversified Financial Public-Private Pension Fund
Services
Public-Private Pension Fund
Holding Company
31
Source:CBInsights
 MOST ACTIVE CVCS IN CANADA IN THE LAST
18 MONTHS
Direct Investment Select Canadian
CVC Sectors Investment in VC fund Investments
Machine Learning; Makes
1 business work better X
ICT; Healthcare; Energy, Lighting
2 and IoT; Manufacturing X X
3
ICT X
Voice technology innovation;
4 Hardware for Alexa X
5
ICT X
Technologies in the advertising,
6 consumer, enterprise and
infrastructure spaces
X
7 ICT X
Improvements to Agricultures
8 from biotechnology to software X
Energy, Digital, Robotics,
9 Advanced Materials X
Products that build on top of
10
slack; Tech for the workplace X X
32
Source:CBInsights
 MOST ACTIVE CANADIAN PRIVATE FUNDS OF
FUNDS INVESTING IN VCS
Funds of Funds Size (CAD$M) VCAP Direct Investments

375* Yes

306 Yes

300 Yes

90 No

While HarbourVest is not Canadian, they have created the HarbourVest Canada Growth Fund which received financing
under VCAP

375 Yes

*Teralys also has a previous fund, the Teralys Capital Fund of Funds L.P. which raised $600m

33
Source:CVCA Infobase
 CURRENT STATE OF VC FUNDING PER CITY
Montreal Toronto
• Tech sector is third largest Tech sector is the third largest
employer (222,200) employer (286,100)

Vancouver Ottawa Kitchener-Waterloo

Tech sector is the second largest Tech sector is the second largest Tech sector is the third
employer (111,700) employer (111,700) largest employer (23,200)

Current stage of VC-funding of tech startups founded since 2007 Deal Volume per city (%)
Toronto - 100%
Canada Montreal KW
Ottawa Vancouver
90%
Seed 47.5% 48.3% 55.0% 45.3% 44.2% Other
80%
Series A 16.8% 26.1% 25.8% 15.1% 11.2%
70%

Series B 5.0% 3.4% 3.3% 11.3% 4.2% Vancouver

60%

Series C 1.5% 1.0% 0.9% 0.0% 1.4% Ottawa

50% Kitchener - Waterloo

Series D+ 0.5% 0.0% 0.4% 0.0% 0.4%

40%

Acquired 18.5% 16.7% 11.3% 22.6% 21.8% 30%

Toronto

Public 10.3% 4.4% 3.3% 5.7% 16.8% 20%

Compared to national average, Toronto and Montreal have more 10%

Montreal
promising future given high % of seed and Series A stage firms
0%
while Vancouver has outpaced historically in terms of exits
2013 2014 2015 2016 H1-2017

Source: Tracxn Source: CVCA 34

 INTRODUCTION TO WHITE STAR CAPITAL
Additional
Physical hubs
White Star Capital hubs
Montreal Toronto
We invest in ambitious entrepreneurs on both sides of the New York Stockholm
Atlantic. Between us, we have founded, scaled and sold many London Berlin
successful technology businesses. We leverage our collective Paris
experience, expertise and global network to help our startups
succeed.

Jean-François Marcoux Eric Martineau-Fortin Christian Hernandez Gallardo

General Partner - Montreal General Partner - New York General Partner - London

TRENDS WE ARE FOCUSED ON AND PORTFOLIO

IoT and M2M Disruptive Digitalization of

Commerce Finance

There will be 40b(1) Digital commerce will rise $7.5b invested into
FinTech companies(3) in
sensors by 2020 and to $1.18t by 2020(2)
H1’16 with London and
with the ability to speak driven by emerging New York as two key
and act on their own markets and mobile global hubs

AI-powered applications in the enterprise is expected to reach $11b by 2024(4).

AI Machine learning is unlocking innovation across all industries and will continue to
accelerate. Evolution into “AI as an API.”

2.3 trillion gigabytes(5) are now created each day. Negligible cost of storage
Data
allows business to truly use data as a competitive advantage.

www.whitestarvc.com 35
Sources 1) Juniper Research 2) Statista 3) KPMG/CBInsight 4) Tractica 5) IBM