Companies & Industries

Three Canadian provinces now attract more venture capital than all but 6 states

Guess where the venture capitalists are investing now?

(Photo: Sam Jeffrey Coolidge/Getty Images)

(Photo: Sam Jeffrey Coolidge/Getty Images)

Tech startups in Canada have long complained about how hard it is to secure funding—but that’s changed. Overall, venture capital spending in Canada shot up by more than 30% in 2013, and Ontario, Quebec and British Columbia are now among the Top 9 destinations for VC funding in North America. Not bad considering B.C. didn’t even crack the Top 20 in 2012.

1. California | $15.2 billion

In 2013 the Golden State grabbed 47% of North American VC market share, down from 50% in 2012.

2. Massachusetts | $3.2 billion

3. New York | $3 billion

New York’s take of the VC market grew the most in North America in 2013, up 2.6%, likely due to the fact that the tech industry is now the second-biggest sector in the Empire State.

4. Texas | $1.3 billion

5. Maryland | $680 million

6. Ontario | $676 million

The clean-tech and info-tech sectors attract the lion’s share of VC funding. That’s certainly true in Ontario, which is home to three of the five largest companies receiving VC funds in Canada, including a $100-million investment in the e-commerce website provider Shopify and a $47.5-million deal for the renewable energy company Anaergia.

7. Virginia | $614 million

8. Quebec | $589 million

Quebec grew its VC market share by just 0.4%, but it was enough to move it into the Top 10.

9. British Columbia | $478 million

More than one-third of all VC money invested in B.C. in 2013 went to a single company. Investors sank $171 million into social-media company HootSuite. It wasn’t just the biggest deal in the province; it was the biggest deal in the country in 2013.

Source: Canada’s Venture Capital & Private Equity Association