February 2023




Réseau Capital and its Centre of Expertise presents the quarterly report on private equity industry activities in Québec. Produced in collaboration with the Canadian Venture Capital Association (CVCA), this report provides a detailed view of venture capital (VC) and private equity (PE) investments in Quebec for the F quarter of 2022. It provides a review of private investment activity in Quebec companies by type of investment, industry sector, stage and size of investment.

In Q4 2022, Québec saw nearly $1.65 billion invested across 170 deals in venture capital and private equity investments. From an annual perspective, 2022 concludes with investments totaling $8.31 billion across 703 deals in venture capital and private equity investments combined. Despite a fairly active 2022 from a historical perspective, inflation, rising interest rates and supply chain issues are creating uncertainty that is impacting the business environment.

In terms of VC, 2022 ended with a resilient Q4 given the current climate, with 38 deals and $364M invested, closing out a year that saw a total of 153 deals and $2.46B invested. The year was also marked by mega-deals ($50M+), which alone accounted for 63% of the amounts invested in Québec. Signs have also cropped up indicating a resurgence of seed-stage investment. Despite a modest fourth quarter in late-stage and growth, with a combined total of $165M invested in Q4, Quebec is experiencing its best year for these stages of investment with a total of $1.49B invested in 2022.

In terms of PE, 2022 marked a change in dynamics with a record number of deals (550), but the amounts invested ($5.84B) were below historical averages. A total of $1.29 billion in investments across 132 deals were recorded in Q4. While the amount invested in 2022 ($5.84 billion) is below the historical average, the record number of transactions (550) maintains Quebec’s position as the private equity leader in Canada.

The economic climate continues to have a major impact on our activities in Québec, with the same situation also affecting the rest of Canada and the United States. As in previous quarters, these risks could continue to curtail investment activity in the coming months.


Venture Capital Highlights:

  • In Q4, Quebec saw 38 deals totaling $364 million, with the number of deals remaining stable compared to the first three quarters. The rest of Canada also experienced a slight increase in investments. The last two quarters also saw an upturn in seed-stage deals in Quebec.
  • Quebec accounted for 22% of deals and 25% of VC investments nationally in 2022. While Ontario remained the most active player, Quebec surpassed British Columbia in terms of investment activity.
  • Thanks to several mega-deals, the average size of VC investments for 2022 in Quebec is now $16.13 million, well above the Canadian average of $14.20 million, tied with the Ontario average of $16.12 million, and slightly higher than the BC average of $15.43 million.
  • With total investments of $1.49 billion, Quebec had a remarkable year for late-stage and growth investments, exceeding the total investments made at these two stages in 2021 ($1.13 billion).


Private Equity Highlights:

  • In 2022, Quebec experienced a record-breaking year for the number of deals with 550 investments totaling $5.84 billion. The province is at a different peace compare with the rest of Canada in terms of investment activity.
  • Quebec solidified its position as the leading province in Canadian development capital transactions, accounting for 62% of the Canadian PE deals, followed by Ontario at 19% and British Columbia at 12%. In addition, Quebec also attracted 58% of the total capital deployed.
  • Despite the average amount invested per deal in 2022 of $11 million falling below the 2021 figure of $20 million per deal, Quebec still ranks among the top provinces in the country for investment activity. With the highest deal count in the last ten years, and a modest average size per deal, 2022 was marked by a change in PE dynamics in Québec.
  • The Industrial & Manufacturing sector continues to dominate the investment landscape in Quebec, accounting for 32% of deals and capital deployment in 2022. The Business Products & Services sector recorded the second-highest investment amounts after 2021, with 47 deals totaling $1.29 billion.