Canadian startups had a tough Q3, and AI's popularity isn't making a big difference | TechCrunch
Oct 11, 2023 - news.bensbites.co
The article discusses the decline in global venture investment in Q3, with a particular focus on Canadian startups. The data from PitchBook suggests that startups worldwide should anticipate another quarter of declines. However, European startups were slightly better off, with more venture capital deployed in Q3 than in the first two quarters. Canadian startups, however, are not expected to escape the global downturn. Data from Tracxn paints a bleak picture of the fundraising climate in Canada, with funding to Canadian startups declining by 57% to $808 million in Q3 2023 from the previous quarter.
The report also highlights that no new Canadian unicorns were created last quarter. The only company that raised at least $100 million was Toronto-based AI chip startup Tenstorrent, which reached the $1 billion mark in 2021. Furthermore, Canada saw fewer deals in the quarter, with only 71 startups raising money in Q3 2023 compared to 102 in Q2 2023, and 146 in Q3 2022.
Key takeaways:
Global venture investment in startups is expected to continue declining, with Canadian startups also not escaping this trend.
European startups are faring slightly better than the rest of the world, with more venture capital deployed in the third quarter than in the first two quarters of the year.
Funding to Canadian startups declined by 57% to $808 million in Q3 2023 from the previous quarter, and it's 84% less than Canada’s record fundraising quarter, Q2 2021.
Canada saw fewer deals in the quarter, with only 71 startups raising money in Q3 2023 compared to 102 in Q2 2023, and 146 back in Q3 2022.
