How’s the technology sector in Canada been so far this year? (2017)
Following the Toronto Stock Exchange (TSX) “2017 Mid Year Review” of technology sector, these first months of the year have been pretty exciting for Canadian tech.
- Steady growth of tech companies IPO activity.
Canada has been experiencing a great evolution of it’s tech sector, primarly thanks to new rising companies, entrepreneurs and institutions. Also there has been numerous companies going public, raising capital at a record pace on the Toronto Stock Exchange (TSX) and TSX Venture Exchange.
Let’s look at 2017's first half in comparison to 2016 :
2016 has been a new record for the TSX, with a total reach of 41 IPOs and new listings. The first 6 months of 2017 are nearly at half of that record, with 18 IPOs and new listings. Seems pretty good.
Canada is one of the few places in the world where startups, growth stage companies and unicorns (over $1 billion dollar valuation) can use the public market to realize their corporate objectives. In 2017 there has been companies from each of these brackets going public.
2. Growth is being rewarded by investors
Companies with high-growth have been particularly well rewarded by investors. These investors have been providing public venture capital, essentially for early stage companies. They are continuing to look for investing in early-stage companies which have high potential.
3. All eyes on Canadian tech investment
One of the main key points to point out is that investors have continued making money while investing in the Canadian technology sector.
The S&P/TSX tech index has outperformed the Canadian benchmark index over the last 1, 3, 5 and 10 years period. It has also outperformed S&P 500 during the same period.
Canadian tech is thus considered as a hot area for investments and earning money from it.
4. International strengh : Toronto Stock Exchange welcomes tech companies from around the world
What is also unique about the TSX is it’s great diversity of companies coming from various parts of the world. About 225 international companies have been listed on the TSX and TSXV.
25% of tech IPOs and new listings in the last 18 months came from US, Europe, Israel and South America.
This is expected to continue to evolve following that several US based companies are becoming more interested in implementing their business and offices in Canada for opportunity reasons and because of the succesful development of tech industry in several tech scenes such as Toronto, Waterloo, Vancouver, etc.
Conclusion : High expectations in tech $$$
Canadian tech has been performing well over this first half of 2017 on the TSX and TSXV markets.
More than ever, companies are willing to go public, as to drive their growth and generate bigger revenues for their business. There is a new attitude among canadian tech companies of focusing on long-term and lasting for good, rather than being sold.
This mentality has been driven by the positive momentum of the last several years.
The Toronto Stock Exchange believes that the tech sector will continue to grow, and that global leaders will continue to emerge from their markets.
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