Deeptech in Quebec (Q2 2023) (Jolt Capital)

Summary

• Within companies with an estimated geo-coding, 27% of Canadian Deeptech companies created originate from Quebec, capturing 19% of equity rounds.p.4
• Since 2010, roughly 1,300+ Quebec Deeptech companies have raised €6,9b of capital across 942+ deals.p.5
• Approximately +350 Deeptech companies are founded yearly in Canada, of which +60 are located in Quebec.p.9
• Quebec companies received a record amount of funding in 2021, with total funding reaching €1,2 billion.p.18
• Deeptech companies in Canada have contributed to creating almost 250,000+ jobs, with +23% of them in Quebec.p.23
• More than 20% of the stock of patent applications within Canadian Deeptech domains originates from Quebec.p.24

Key insights

1. Quebec investment from late-stage rounds grew by +28% CAGR per year between 2010 and 2022.p.15
2. Between 2010 and 2022, approximately 87 Deeptech companies raised their first round each year on average in Canada.p.16
3. On average, Quebec Deeptechs raise 1.3x more capital than other Canadian companies.p.19
4. About +50% of seed-funded Deeptechs reach the second round in both Quebec and the rest of Canada.p.21
5. Within Quebec, approximately 14 mega fundraising rounds have been completed over the past 12 years.p.30
6. Canadian exit activity cooled to 55 exits in 2019 before restarting at record levels in 2021.p.31
7. About 5 Deeptech companies complete an IPO in Quebec every year.p.32
8. Fonds de solidarité FTQ is the most active investor in Quebec Deeptech with 39 deals.p.34