How InBC is Supporting Economic Growth in B.C. 

December 12, 2024

As we prepare for a new year, we take this moment to reflect on the market trends of 2024, as well as share an update on the progress we have achieved in the past year and how we are working to support more B.C. companies.

The startup fundraising environment in Canada

In 2024, B.C. companies raising investment continued to face an ever-evolving economic environment. Investors continued to be cautious, influenced by macroeconomics such as higher interest rates — now just starting to come down, inflation and geopolitical uncertainty to name a few. While venture capital (VC) investment values in Canada climbed 14% year-over-year, the number of deals declined indicating investor preferences toward later stage deals with proven track records. And now more recently, proposed tariffs from south of the border are threatening to reduce demand for Canadian products.

Still, B.C. made up 32% of total VC investment value in Canada in the first nine months of the year, surpassing Quebec for investment dollars raised for the first time since 2021. InBC is supporting this resiliency by proactively identifying companies with growth potential and in key sectors for B.C., to maintain a flow of investment and maximize economic impact. We also continue to invest in venture funds to reach more companies, intentionally focusing on those supporting companies at earlier stages of growth including at the pre-seed and seed stages. And we collaborate with others doing complementary work, to share investment opportunities and attract more investment to the province.

The role of InBC

InBC invests to fuel the growth of innovative B.C. companies across the province, to help drive economic growth, create jobs and boost innovation.

Pie chart: Investment to B.C. companies by investor location

This includes providing a source of local capital. While in 2023, B.C. companies sourced just over 30% of their investments from domestic investors resulting in economic benefits flowing outside the country. We support companies at a critical stage of their development, as they transition from early to growth stage — typically raising a Series A or later round — and need additional funding to continue scaling (see below chart). Lastly, we invest in a diversity of sectors and economic regions, to unlock more of the potential that exists across the province.

Bar charts: Investment in B.C> companies by growth stage

Investment progress highlights

Our investments are already generating benefits for the province. We began investing in the fall of 2022 and as of November 30, 2024, have committed $139 million to 12 B.C. companies as well as seven venture funds that have invested in an additional 15 B.C. companies. These 27 companies are currently employing over 1,100 British Columbians, have contributed over $76 million to research and development in B.C. and have raised $506 million in total investments. We invest in other venture funds to increase our investing capacity; for every dollar that InBC has invested in a venture fund, $3.96 have been invested back into B.C. companies.

InBC's portfolio impact highlights November 2024

We are building a robust and diverse portfolio, engaging across the province to ensure we reach a diversity of entrepreneurs, sectors and industries, and communities. The companies in our portfolio are located across four of B.C.’s eight economic regions and we are just getting started. These investments are also supporting key growth sectors in the province, including agribusiness, cleantech, life sciences, and information and communications technology (ICT).

Our portfolio companies are creating jobs, generating intellectual property and contributing to economic growth in their communities while reaching global markets through exporting, helping to position B.C. on the world stage as a leader of innovation.

InBC portfolio geographic and sector diversity

Our long-term goal is to build a thriving, sustainable and inclusive economy that works for everyone. InBC will be investing $500 million over the next several years, and our vision is for the financial returns generated to be reinvested so we can continue supporting more B.C. companies to scale.

Working together to achieve more

We can achieve more together and are grateful for the many partners we work with across the innovation ecosystem in North America, and especially here in B.C. Through the B.C. venture capital community, we are able to share market trends, best practices and investment opportunities, while strengthening the connectivity of our sector to better support more companies. Capital Compass BC, developed in collaboration between InBC, Innovate BC, New Ventures BC and PacifiCan, is a free online platform connecting companies and investors. And with Web Summit taking place in Vancouver next May, the innovation ecosystem is coming together to showcase the opportunities in this province.

2025 will be an exciting year for innovation in B.C. and we look forward to continuing to work with all of you to scale our collective impact benefiting British Columbians.


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