Important milestones in the development of Venture Capital in Quebec. Français ici: https://www.slideshare.net/coachdavender/la-petite-histoire-du-capital-de-risque-au-quebec Présenté lors d'un projet Toastmasters à Montréal, le 26 novembre 2018 (c) 2018 Davender Gupta. Tous droits réservés

1. A Brief History of
Venture Capital in Quebec
Davender Gupta, MS, MBA
TheScaleupProject.com
November 26, 2018
(c)2018 Davender Gupta. All rights reserved. 1

2. To successfully pitch investors,
entrepreneurs need to understand
where the money comes from.
(c)2018 Davender Gupta. All rights reserved. 2

3. Defining Venture Capital
Funding for high-growth-potential,
technology-enabled ventures
(c)2018 Davender Gupta. All rights reserved. 3

4. Past
Fonds Innovatech Capital
(1992-2003)
• $500M in four regions
(c)2018 Davender Gupta. All rights reserved. 4

5. Past
Rapport Brunet (2003)
Innovatech was a failure:
• lack of skilled managers
• no incentive for private capital
(c)2018 Davender Gupta. All rights reserved. 5

6. Past
Fonds d’intervention economique
régionaux (FIER) - 2006
•Public-private
•Led to the launch of Anges-Quebec
(c)2018 Davender Gupta. All rights reserved. 6

7. Past
Montreal Startup Real Ventures
•Private group (John Stokes)
•$5M (2007) to $300M+ (2018)
•Mission to build a Montreal ecosystem
(c)2018 Davender Gupta. All rights reserved. 7

8. Present
• Major Funds: Real Ventures, iNovia
• Funders of Funds: Teralys, CDPQ
• Small Private Capital (more than 100 funds)
• Anges Quebec
• Government: Federal (Catalyst), Provincial,
Municipal (Fondation Montreal Inc)
(c)2018 Davender Gupta. All rights reserved. 8

9. Present
• 2017: $1.6B in 180 VC transactions in Québec
• Desjardins and Real Ventures = 80 transactions
• Larger Exits
• Luxury Retreats $330M
• Accedian Networks $133M
(c)2018 Davender Gupta. All rights reserved. 9

10. Future - Weaknesses
Still weak for seed stage and early stage
Lack of resources for larger rounds (C,D and beyond)
Too reliant on government / labour-sponsored funds of funds
Lack of Corporate Venture Capital
Tension between concentration and diversification
(c)2018 Davender Gupta. All rights reserved. 10

11. Future - Strengths
Silicon Valley money is moving to Quebec
Silicon Valley Bank
AI Good Ventures
Startups with Global Ambitions stay and grow here
Element AI
Lightspeed POS
Montreal’s ecosystem is world-class
(c)2018 Davender Gupta. All rights reserved. 11

12. Conclusion
Money is abundant
But what about the
ambitions of our
entrepreneurs?
(c)2018 Davender Gupta. All rights reserved. 12

13. For more information,
contact
Davender Gupta
Founder and Venture Strategist
The Scaleup Project
Davender.Gupta@TheScaleupProject.com
514-296-6288
www.TheScaleupProject.com
www.Davender.com
www.linkedin.com/in/coachdavender

14. Sources
• Innovatech
• Entrevue avec Jacques Bernier, PDG Teralys Capital
• http://polyfinances.ca/blog/2015/04/03/historique-du-capital-de-risque-au-quebec-base-sur-la-rencontre-du-12-mars-2015-avec-jacques-bernier/
• Entrevue avec Hubert Manseau, PDG Innovatech (2003)
• https://www.ledevoir.com/economie/27531/entrevue-avec-hubert-manseau-innovatech-a-toujours-quelque-chose-a-offrir
• Rapport Brunet
• https://www.economie.gouv.qc.ca/fileadmin/contenu/documents_soutien/salle_presse/communiques/annexes/20031217_capital_r
isque.pdf
• Biographie Pierre Brunet
http://www.lesaffaires.com/blogues/rene-vezina/vezina--salut-pierre-brunet/532041
• Venture Capital in Quebec
• https://montrealgazette.com/business/montreal-leads-canada-in-venture-capital-dollars
• CVCA/Reseau Capital Venture Capital in Quebec Report 2017
https://reseaucapital.com/wp-content/uploads/2018/03/q4-2017_quebec-report-fr_final-1.pdf
©2018 Davender Gupta. Tous droits réservés. 14