Canada, Québec : According to a new report by briefed.in, venture capital in Québec’s digital sector reached a three-year low in the third quarter of 2022, but it’s not just the tightening economy that probably dealt the ecosystem a serious hit.
Québec saw a total of $90.2 million in venture capital in the third quarter of 2022, down 83 percent from the same period last year and 64 percent from the prior quarter. Since briefed.in started tracking the province, the third quarter marked the first time venture funding in Québec went below $100 million since Q2 2019. It was also the province’s lowest funding quarter in the previous three years.
13 agreements were closed in Québec, making the third quarter of 2022 the province’s least active fundraising period in the previous two years. Deal volume decreased by 19% on a quarterly basis, while the total number of deals decreased by 58% on an annual basis. The findings of Q3 2022, according to Philippe Telio, creator of Startupfest in Montréal, are alarming but also expected.
Telio told BetaKit that Q3 couldn’t have come at a worse moment. Deals are typically less plentiful in the third quarter, but a perfect storm is brewing in Québec due to macroeconomic variables and elevated uncertainty.
Telio asserted that while there are several regional, national, and international challenges that might account for a significant portion of the decline in investment, he believes there are additional, Québec-specific variables that began to have an effect on the ecosystem in Q3 2022.
Original Credited Source
Betakit / Isabelle Kirkwood / Thoren (Canada)
