Serial Acquirers Market Update: Canada’s Top Growing Companies in 2024 and the Evolving Canadian Startup Landscape
38,431%—that’s the three-year revenue growth rate of the fastest growing company in Canada this year, according to The Globe and Mail, which released its ranking of Canada’s fastest-growing companies in 2024 last week. Though most of the companies listed tend to have less than $50 million in revenue due to the law of large numbers, it’s still quite impressive to see NEO Financial secure the top spot with this 5-figure growth rate.
Decisive Dividend, a publicly traded serial acquirer that I wrote about in the past—and disclaimer, hold shares in—also made it on the list in the #234 spot. While the company ranked well this year, the stock price has waned in recent quarters due to underperforming expectations and, at least in part, because of the lack of new acquisitions.
Generally speaking, these types of lists can be very insightful for investors; they provide a great snapshot of the business landscape in Canada, as well as serve as a valuable resource to source new investment ideas and find niche markets worth exploring.
Pangaea Venture Closes Largest Fund to Date
Pangaea Ventures, a venture capital firm out of Vancouver closed its largest fund to date at $115 million to invest in solutions aimed at addressing environmental health. This fifth fund will focus on investments in clean energy, sustainable agriculture, and biosciences. The fund has already backed five ventures, and their portfolio includes other Canadian tech firms. This development is part of a broader trend of Canadian venture capital growth, with several firms like Teralys Capital and Luge Capital also securing significant new funds.
Canadian Early-Stage Startups Surge Amid Challenging Investment Climate
Two recent reports that have been published provided me a detailed look at the state of early-stage startups in Canada right now. Panache’s report showed a 31 percent increase in technology company creation in the first half of the year, and the data led me to predict a step towards more startup emergence.
However, new founders are facing a tough investment climate, and a report from the Canadian Venture Capital and Private Equity Association (CVCA) highlights a significant decline in pre-seed and seed-stage investments, with total dollars invested dropping 48 percent.
I believe factors such as high interest rates have driven investors to “safer” assets, making it difficult for VCs to raise or deploy new capital. While I remain optimistic about a rebound as interest rates fall and exits increase liquidity, other early-stage investors may hold a more cautious outlook. What are your thoughts on what the future of Canadian VC funding looks like?
In case you missed it…
SureSwift Capital’s James DeGreef: Navigating Tech Leadership in Victoria
Our visionary CEO, James DeGreef, shares his inspiring journey from co-founding GenoLogistics in 2001 to leading SureSwift Capital today, showcasing his relentless drive and innovative spirit. With James’ extensive experience as a founder, his unique insights into early-stage companies make him an invaluable leader of SureSwift. Anyone interested in lessons for success as a founder or investor should dive into James’ blog post.
How Docparser AI Transforms Data Extraction and Usability
Leveraging cutting-edge technology to deliver outstanding value to customers is more important than ever before in a rapidly transforming world. DocParser, one of SureSwift’s portfolio companies, has been utilizing AI to revolutionize document management, saving our customers valuable time and effort. And this is only the beginning. As we continue development, new AI features will be incorporated into our products to further improve functionality and the user experience.