CIBC Tech & Innovation Market Update – November 2022 – Volume 31

In the lab studying Phenotyping

Welcome to the official newsletter of CIBC’s Tech & Innovation Capital Markets Group

A curated monthly report to keep our readers abreast on relevant and recent developments within the Canadian tech ecosystem.

Canadian technology sector performance and valuation

Canadian technology sector performance and valuation

EV / NTM revenue multiples 1 LTM sector price performance 1
EV NTM revenue multiples  LTM sector price performance

Source: FactSet and Pitchbook; as at October 28, 2022; in C$ unless otherwise noted.
1 Please refer to the end of the document for technology group constituents.


Canadian Venture Capital market update 2


(vs. $361M in Sep-223)
Aggregate deal value


(vs. 28 in Sep-22)
Number of deals


(vs. $18M in Sep-223)
Avg. deal value


($662M / 28)
Most active province
by count ($ / #) 


($662M / 28)
Most active province
by value ($ / #)


(80% of funds raised)
Most active sector

2 13 deals with no announced value are omitted from deal value. 
3 8 deals with no announced value are omitted from deal value.


Noteworthy Canadian deals




Lead investors

Touch Bistro logo



Fransisco Partners logo
North One logo



Battery logo
Carbon6 logo



White Star Capital logo
Ten Thousand Coffees logo



Five Elms logo

OTI logo


Chemicals & Gases

LG Technology Ventures logo

Horizon logo



Brevan Howard logo

Morgan Creek Digital Assets logo

Perspectives from The Hon. Navdeep Bains

Vice-Chair and Managing Director for Global Investment Banking, and former Canadian Minister of Innovation, Science, and Industry shares his insights.

A headshot of Navdeep Bains

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Nearly 80 per cent of Canada’s population growth, and almost all of Canada’s labour force growth, depends on immigration.”

How Canada can win the war for talent and become richer too.

The ratio of Canadian workers for every retiree, which was about seven to one about 50 years ago, will soon hit three to one. Evidence of the labour market crunch is all around us, as businesses struggle to find and retain employees across a range of skill categories. Canada’s backlog of unfilled jobs and our strategy in the global war for talent require continued increases in our annual immigration targets.

Read the full report on the Financial Post

4 Article is co-authored by Elder C. Marques, Partner at Blake, Cassels, and Graydon LLP.


Deal Activity

Health Joy, Undisclosed Growth Financing, October 2022

HealthJoy – Growth Financing

CIBC Innovation Banking participated alongside Endeavour Vision in HealthJoy’s recent $60M Series D funding led by Valspring Capital. HealthJoy is a digital platform that helps HR departments reduce the underutilization of benefits, allowing employees to track their available opportunities and access on-demand healthcare support through HealthJoy’s virtual care suite. As of October, this brings HealthJoy’s funding total to $108M.

Read the full report on TechCrunch+.

Procept BioRobotics - $52 million - Debt Refinancing - October 2022

PROCEPT® BioRobotics – $52M Debt Refinancing

CIBC Innovation Banking provided a five-year $52M loan arrangement for PROCEPT® BioRobotics, a surgical robotics company focused on advancing patient care by developing transformative solutions in urology. The use of proceeds will retire a $50 million debt facility with another lender and provide the company with greater financial flexibility while reducing their annual interest expense by approximately $2.8 million.

Read the full report on GlobalNewswire.



A burgundy logo of a globe

IEFA Toronto Global Forum 2022

Government partners and organizations from around the world congregated at this year’s Toronto Global Forum to “chart out the new economy.” Vice-Chairs of CIBC Capital Markets Global Investment Banking, The Hon. Lisa Raitt and The Hon. Navdeep Bains spoke on various topics including developments in the mining sector and how current trends such as remote work and digitization are impacting the immigrant workforce.

Learn more on this year’s IEFA Toronto Global Forum here.



Headshot of Tom Dretler

Why This CEO tied the company’s profatability directly to student outcomes with Tom Dretler, CEO & Co-Founder at Shorelight.

Listen to the Podcast here.

Headshot of Rodolphe Barrere

Getting out of your own way: on the path to startup success with Potloc Co-Founder and CEO Rodolphe Barrere.

Listen to the Podcast here.

Technology & Innovation in‘sites’ with CIBC Equity Research

T&I ‘Bits & Bytes’

USA Flag Icon

U.S. Midterms: gridlock the likely outcome – Slightly better sentiment on Energy and little else

The Republicans are expected to flip at least one chamber of Congress on November 8, with the House of Representatives the most likely. Historically, gridlock is positive for equities but today’s market is ultimately Fed and inflation focused. Across sectors, GOP policy is most beneficial to Energy. More uncertain however, is the outlook for Big Tech and ESG. Big Tech is likely more at risk of regulation under the Dems, but the sector is increasingly in the crosshairs of GOP legislators – largely around social media censorship of free speech. The GOP’s anti-ESG stance is also widely advertised. However, SEC proposals for mandatory climate-related financial disclosure were never a guarantee to start with and still seem likely to end up in court.

Read the full article here.

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Shooting their shot – Big tech’s trash is late-stage start-up’s treasure

As big tech firms shift into a new phase of generating value by operating more like cash-cow businesses than focusing on growth at all costs, expense management is more in focus than ever before. With GOOG, MSFT and META all missing Q3 EBITDA expectations this week as a result of inflationary pressure and slowing advertising spending, big tech firms are taking a more measured approach to hiring and headcount growth. Tech giants are backing off their previous approach of hiring nearly every qualified engineer in Silicon Valley, leaving start-ups and earlier-stage companies in a good spot to pick up talent that would have previously been inaccessible.

Read the full article here.

A burgundy icon of a computer

Racing to grab attention – Uber and Netflix turn to ads to boost revenues

The digital advertising market has recently been hit with headwinds as inflation and an uncertain economic environment lead companies to reevaluate advertising budgets. Meanwhile competition is heightening, with Uber and Netflix two of the recent entrants in the space. With digital advertising viewed as a barometer of the consumer demand environment, we will be watching Q3 earnings updates closely.

Read the full article here.

A burgundy icon of an electricity symbol

Chips are falling – No shortage of headwinds for the semiconductor industry

Semiconductor stocks haven’t been able to catch a break recently as concerns around a slowing economy and rising rates have been compounded by new restrictions on exports to China. A bundle of the seven largest Semiconductor stocks by market cap is down 50% YTD and 20% in October. Recent earnings misses from AMD and Samsung have signaled further downside risks, including IDC’s recently released datapoints on the slowing PC market.

Read the full article here.

VC money vanishes – Start-ups look to venture debt to extend cash runway

2022 Y/Y public and private market comps look bleak with 2021 marking a record year for valuations. The difficult market has slowed the pace of venture capital cheques as the VC firms digest the bearish IPO exit market and public market sell-off. As a result, many start-ups are turning to venture debt to 1) ease their liquidity pain; and, 2) avoid setting a new, lower valuation through equity down rounds. But debt comes with its own costs and risks, and raising too much of it can be cause for concern.

Read the full article here.

Recent technology news

“Tech’s biggest companies are sending worrying signals about the economy”

U.S. tech companies’ recent round of quarterly earnings led analysts to have a negative outlook on the sector, with Microsoft, one of the most reliable performers forecasting a slowdown in revenues through to the end of the year. While traditionally tech companies have driven significant U.S. economic growth over the last decade, inflation, interest rates, and other factors contribute to their poor market performance today.

Read the full article at The New York Times.

“Why startups are better off prioritizing growth instead of cloud costs”

For many founders and leadership teams this year, the topics of conversations have been on cost optimization and extending runways. However, several investors surveyed by TechCrunch+ advise startups to consider foregoing certain cost-cutting ventures due to the manpower, resources and time it may take to find and implement more cost-effective alternatives.

Read the full article at TechCrunch+.

“There’s been only one company IPO this year on the TSX, and that’s a problem”

In 2021, 33 operating companies had initial public offerings on the TSX. In 2022, there has been only one. The drop in IPOs this year was unsurprising to most, but perhaps fewer noticed that the IPO market has been slowly declining since 2000, according to researchers at the University of Calgary – not only in Canada but in most developed countries world-wide.

Read the full article at The Globe and Mail.

“Amazon shares skid on weak outlook amid recession”

Despite reporting a 15% increase in Q3 sales Y/Y, the e-commerce giant’s shares fell by more than 13% in premarket trading in late October, with the company projecting that next quarter’s sales will be far below expectations. The company’s recent $2.9 billion net income is its first quarterly profit in 2022, which is still 9% lower than the same period last year.

Read the full article at The Wall Street Journal.

“The VC slowdown has young investors sweating”

For those just starting out in venture capital, from analysts, associates, and principals reporting to general partners and managing directors, today’s startup climate has them anxious about their future career prospects. Kate Clark of The Information agrees they should be.

Read the full article at The Information.

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CIBC Capital Markets Insights

Leverage leading insights and stay abreast of developments in the markets with CIBC Capital Markets Insights.

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Tech & Innovation Key Contacts

Roman Dubczak
Deputy Chair
Susan Rimmer
Managing Director And Head, Global Corporate & Investment Banking
Kathy Butler
Vice Chair and Head of CIBC Capital Markets – B.C.
Colin Ryan
Managing Director, Head of Technology & Innovation, Global Investment Banking
Adam Noily
Managing Director, Head of U.S. Technology & Innovation, Global Investment Banking
Emilie Bissonnette
Managing Director, Global Investment Banking
Daniel Lee
Managing Director, Technology & Innovation, Global Investment Banking
Frazer Wong
Executive Director, Technology & Innovation, Global Investment Banking
Mark McQueen
President and Executive Managing Director, Innovation Banking
Mark Usher
Executive Managing Director, Innovation Banking
Robert Rosen
Managing Director, Innovation Banking
Julia Kassam
Managing Director, Innovation Banking
Paul McKinlay
Vice-President and Head of U.S. Origination, Innovation Banking
Amy Olah
Managing Director and Head of Canadian Origination, Innovation Banking
Eric Laflamme
Managing Director, Innovation Banking
Joe Timlin
Managing Director, Innovation Banking
Rob Magwood
Managing Director, Equity Capital Markets
Stephen Redding
Managing Director and Head

Canadian Technology Constituents

High-Growth Canadian SaaS – Ceridian, Copperleaf, Coveo, Descartes, Dialogue, Docebo, Kinaxis, Lightspeed, Magnet Forensics, Q4, Shopify, Thinkific

Large Cap Canadian Tech – Altus, Blackberry, Celestica, CGI, Constellation Software, Converge Technologies, Dye and Durham, Enghouse, Evertz Technologies, Nuvei, OpenText, Sierra Wireless, Softchoice, Well Health

Mid Cap Canadian Tech – Absolute Software, Calian, Computer Modelling Group, D2L, E Inc., Payfare, Real Matters, Sangoma, TECSYS

Small Cap Canadian Tech – Alithya, Baylin Tech, BBTV, Blackline Safety, Farmers Edge, Kneat, Optiva, Pivotree, Quarterhill, Sylogist, Terago, Vecima, Vitalhub, WeCommerce

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