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CIBC Tech & Innovation Market Update – September 2020

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

A line graph showing Canadian technology sector performance and valuation

EV / NTM revenue multiples 1 LTM sector price performance 1

Source: FactSet and Pitchbook; as at September 30, 2020; in C$ unless otherwise noted.
1 Please refer to page 7 for technology group constituents.

 

Canadian Venture Capital market update

$311M

(vs. $240M in August-20)
Aggregate deal value

23

(vs. 26 in August-20)
Number of deals

$16M

(vs. $11M in August-20)
Avg. deal value

Ontario

($163M / 10)
Most active province ($ / #)

 

Software

(41% of funds raised)
Most active sector(s)

 

Noteworthy Canadian deals

Company Size Sub-sector Lead investors
Maple logo C$75M Healthcare services Loblaw Companies Limited logo
applyboard logo C$70M Educational software ETS logo
lifespeak logo US$42M Software Round13 Capital logo
GHGSat logo US$30M Commercial services Investissement Quebec logo
 

T&I @ CIBC

Deal announcement – CIBC Innovation Banking

Vena Solutions Inc. – US$25 million growth capital

Vena is a provider of cloud-based financial planning and analysis software. The platform connects existing systems with an Excel interface, streamlining key finance-led processes, including budgeting, forecasting, scenario analysis, reporting, financial consolidation and more. The funding enables Vena to accelerate growth by further expanding product content and market reach.

Eventus Systems – US$5 million growth capital

Eventus Systems is a global trade surveillance and market risk software platform provider. The company’s flagship product, the Validus platform, monitors activity for clients on more than 100 global exchanges and trading venues. The additional capital will support the firm’s continued strategic growth and international expansion.

Bidgely – US$8 million growth capital

Bidgely is a cloud-based energy analytics software provider, using artificial intelligence (AI) solutions to transform utility meter data into business intelligence for utilities and energy retailers. The funding will enable Bidgely to accelerate its growth plans across Asia, Europe and North America.

 

Podcast

CIBC The Holler podcast logo

The pivot to remote work: accelerating a multi-year trend

 

Technology & Innovation in‘sites’ with CIBC Equity Research

T&I ‘Bits & Bytes’

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Tour Of Quebec’s vibrant tech scene

We spotlight the private companies that participated in CIBC’s first ever virtual tour of Quebec’s leading Technology & Innovation companies, which took place on Wednesday, September 16.

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Gone phishing – cybercriminals look to capitalize during pandemic

A recently published report from WebRoot is highlighting the pervasiveness and increased risks of phishing attacks during the pandemic.

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IPO market heats up – private tech companies look to cash in on frothy markets

THE REBOUND IN TECHNOLOGY NAMES IS A GOOD SIGN FOR THE PRIVATE TECH COMPANIES WITH PLANS TO PUBLICLY LIST THEIR SHARES.

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SPAC-tacular – highlighting Wall Street’s hottest trend

Special Purpose Acquisition Companies (SPACs) or “blank check” companies have made headlines in recent months as a record number of the companies have raised money and publicly listed their shares.

 

Recent technology news

“Are you ready for tech that connects to your brain?”

“People are investing more time and money in personal technology, such as smart speakers, smart watches, wearables, and VR headsets.”

Source: Harvard Business Review.

“Facebook’s power this election”

“How much should Facebook be held responsible for what happens on its site?”

Source: New York Times.

“2020 year of crisis: the virtual classroom”

“The COVID-19 pandemic has shaped the way students learn.”

Source: Bloomberg.

“Pivoting during a pandemic”

“Like everywhere else, the COVID-19 pandemic created a new “no normal” at Facebook.”

Source: Tech Crunch.

 

Tech & Innovation Key Contacts

Headshot of Roman Dubczak
Roman Dubczak
Deputy Chair
Headshot of Kathy Butler
Kathy Butler
Vice Chair and Head of CIBC Capital Markets – B.C.
Headshot of Ryan Voegeli
Ryan Voegeli
Managing Director and Head of Consumer, Industrials and Telecommunications
Headshot of Frazer Wong
Frazer Wong
Executive Director, Technology & Innovation, Global Investment Banking
Headshot of Mark Usher
Mark Usher
Executive Managing Director, Innovation Banking
Headshot of Mark Mcqueen
Mark McQueen
President and Executive Managing Director, Innovation Banking
Headshot of Julia Kassam
Julia Kassam
Managing Director, Innovation Banking
Headshot of Rob Rosen
Robert Rosen
Managing Director, Innovation Banking
Headshot of Paul Mckinlay
Paul McKinlay
Executive Managing Director and Co-Head
Headshot of Amy Olah
Amy Olah
Managing Director, Head of Canada & US West Coast Venture Banking, Innovation Banking
Headshot of Joe Timlin
Joe Timlin
Managing Director, Innovation Banking
Eric Laflamme
Managing Director, Innovation Banking
Headshot of Rob Magwood
Rob Magwood
Managing Director, Equity Capital Markets
Headshot of Daniel Lee
Daniel Lee
Managing Director, Technology & Innovation, Global Investment Banking
Headshot of Stephen Redding
Stephen Redding
Managing Director and Head

Canadian Technology Constituents

High-Growth Canadian SaaS – Ceridian, Descartes, Docebo, Kinaxis, Lightspeed, Shopify

Large Cap Canadian Tech – Altus, Blackberry, CGI, Constellation Software, Enghouse, Evertz Technologies, OpenText, Real Matters

Mid Cap Canadian Tech – Absolute Software, Calian, Celestica, Computer Modelling Group, Dye & Durham, Sierra Wireless

Small Cap Canadian Tech – Alithya, Baylin, Blackline Safety, Optiva, Patriot One, Quarterhill, TECSYS, Terago, Sangoma, Sylogist, Vecima

RELATED INSIGHTS: Tech & Innovation Market Update

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