March 21, 2021:Relatively quiet week in Canadian growth sector capital markets, but pipeline remains very busy
Given market volatility in the technology and growth sectors over the past few weeks, this last week saw a muted level of new growth sector equity financings in Canada once again. That said, new offering pipelines appear healthy, and our contacts at various investment banks suggest there could be up to ten newly minted tech companies in Canada relatively soon. Sophic client, AnalytixInsight (ALY-TSX), could be an interesting stock to watch over the next few weeks, as the company could benefit from increased retail investor trading globally – the company, last week, also announced a new ESG focused offering. In this regard, we are also watching eToro’s SPAC in the USA, as well as public debuts by Deliveroo, Coinbase, Stripe.
As market volatility continued early last week after tumultuous trading the previous week, our discussions with our capital markets contacts suggest new issue pipelines remain exceptionally busy, which, in our view, bodes well for public markets relating to Canadian tech and clean tech. In the Canadian small cap space, we were encouraged to witness Sophic Client Luckbox (LUCK-TSXV), and separately, EMERGE Commerce (ECOM-TSXV) both close recently announced upsized financings. We’re also eagerly anticipating Telehealth provider Dialogue’s IPO. With Bitcoin hitting US$60K over the weekend, we expect crypto to remain an active theme globally. In the USA, Roblox and Coupang, both had strong public market debuts last week, as generally expected.
After three successive weeks of extraordinarily strong capital markets activity by the Canadian technology and clean tech sectors, this past week was impacted by ongoing market volatility as we expected last week. Public markets equity raises were under $100 million by our count. We are keeping an eye out on the performance of TAAL (an interesting Bitcoin SV play) and General Pizza (our due diligence found the pies to be delicious!). In the USA, we’re eager to see public debuts by Coupang, Instacart, Rocket Lab and Cipher in coming weeks/months.
February 28, 2021:Another Strong Week for Canadian Capital Markets, Market Volatility Near Term Speedbump
After two consecutive weeks of extraordinarily strong capital markets activity by the Canadian technology and clean tech sectors, with total public equity fundraising announcements of around $2.5 billion. That said, recent market volatility could temper upcoming near-term activity as investors digest recent new issues and grapple with increased market fluctuations. In the USA, we look forward to upcoming public market debuts by Coinbase, Robinhood, Roblox and Toast.