Can/Am Exchange Cross-Border Investing, Capital Sourcing and Deal Syndication. September 30, 2009. Executive Summary. Highlights Wellington Financial manages a $450 million investment program.
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Cross-Border Investing, Capital Sourcing and Deal Syndication
September 30, 2009
Lead Provided by:
Wellington Financial LPExecutive Summary: Fund Overview
Wellington Financial LP
A 3-year Venture Loan “extends the runway by only 2.5 months,” said Ron Dizy of VC firm Celtic House
For more, see “To amortize or not to amortize”
on our team blog at www.wellingtonfund.com/blog
Canada is open for business.
Governments are trying to be supportive of the “Innovation Economy”
85 disclosed cross-border investments since January 2008.
Foreign VC investments over the past 12 weeks include:
Intel Capital – TransGaming (Toronto)
Auctus - Capital Reserve Canada (Edmonton)
Lothian and OrbiMed – Enobia Pharma (Montreal) – US$50 million round
Braemar Energy Ventures - General Fusion (Burnaby) - US$22 million round
Lime Rock Partner - PanGeo Subsea (St. John’s) - $11 million
General Catalyst Partners – QuickPlay Media (Toronto)
Granite Ventures - Indicee (Vancouver)
GrandBanks – I Love Rewards (Toronto) - $8.7 million round
Active M&A market:
September: CSA acquired DISTIL Interactive
September: Sabse acquired Mobivox
August: Intel acquired RapidMind
August: Broadview Networks acquired NewStep Networks
July: WatchGuard acquired BorderWare Technologies
June: Integrated acquired Tundra Semi for $121 million
May: Vertex acquired ViroChem for US$420 million
More Good News
Not one Canadian bank required a single dollar of government support.
Economy already out of recession, according to the Bank of Canada.
Canadian stock market welcomes smaller technology stories:
A $100 million market cap. company might have 3 or 4 equity research analysts.
A $250 million mkt. cap. company could expect 6 analysts to cover it.
Equity offering window is also open on our side of the border:
Onex just sold >$100 million of Celestica shares;
VC-backed DragonWave just announced a $105 million treasury and secondary offering (60/40), coincident with a NASDAQ listing. DragonWave went public in 2007 and the VCs are getting liquidity 100% above the original IPO price.
$12 billion goes into Science & Technology each year from governments alone.
Canadian IT and Communications Tech sectors employ more than 500,000 people.
Canadian Fund of Funds have lots of capital to invest in U.S. VC funds:
EDC ($1.2 billion), Teralys ($700 million), OVCF ($205 million)….
“Bad” News / Opportunities