AnalytixInsight

As we’ve been pointing out in this column for a while, Canadian tech VC and public markets activity has been witnessing a major increase in activity – unlike anything we’ve ever witnessed in our over a decade on the sell-side. The Globe & Mail recently pointed out that Canadian VC funding records for the second consecutive quarter in Q2, puts the sector on track to surpass the all-time high for a single year, set during the dot-com bubble a generation ago. Public markets are likely not far behind either, and we have witnessed very strong IPO in activity in Canada in the recent past. The Senate passed Bill C-218, legalizing single-event sports betting in Canada – we expect busy capital market on the back of this bill, and have already witnessed the first signs, with Fansunite’s (FANS-CSE) equity offering announced just hours after the bill was passed. In the USA, Robhinhood’s much anticipated public markets debut appears a bit delayed, likely owing to its crypto business drawing questions from the US SEC. Aside from this delay, last week was very busy for US tech IPOs, even as there appear to be new privacy, and big tech related regulatory questions nearly every day in the USA and Europe.

While last week saw relatively fewer innovation sector public markets transactions in Canada, we saw employee wellness software firm LifeSpeak file for a TSX IPO, VerticalScope upsized its IPO to $125 million, and Shopify reportedly invested in Stripe, bringing its total stake to over $350 million. In the USA, and Europe there appears to be increasing focus on regulations and consumer privacy, including the appointment of tech critic Lina Khan as FTC Chair, a Senate proposal for a new US agency to protect Americans’ data, Google’s adtech business reportedly set to face a formal EU probe by year-end, and U.K. regulators looking to examine if Google and Apple run a smartphone duopoly. Sophic client, Killi (MYID-TSXV, MYIDF-OTC) could be a way for investors to gain exposure to this theme. We’re awaiting public markets debuts by PUBG maker, Krafton in South Korea, Grocery courier Boxed via a SPAC deal, and fintech provider Wise via a London direct listing.