In a crowded global market, Canadian AI startups’ fundraising results stand out

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it’s boom time For startups building with or on top of AI functionality: Exchange discovered the rise in venture capital dollars for AI startups last week, noting that investments in the business niche hit an all-time record in Q4 2020, and then one, two and three sequentially in 2021.

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Given how hot the overall venture capital market is proving to be, those data points were just so surprising. However, what surprised us a bit was how active the Canadian AI startup market has been this year.

Maybe it shouldn’t have been. Matt Cohen, managing partner at Ripple Ventures, told The Exchange that “although investment in Canadian startups of all varieties has increased recently, AI-enabled startups are certainly leading the pack.”

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We’re behind, it turns out. But not so far behind that we can’t catch up on the Canadian AI startup story. Our questions are simple: why are Canadian startups seeing their fundraising fortunes seeping so fast, what parts of the AI ​​stack are under attack, what is the role of public money in rising investment totals, and how artificial intelligence works. What is the impact of local universities in Canada?

To help us, we created a . parsed to Data set from CB Insights And Ripple’s Cohen Has Clear Notes As Well Ali ZahidiAn investor in Ramon Ventures, Sean Chance, partner in OMERS, Bruno Morency, Managing Director of Techstars Montreal AI, and Louis Fisher, A CB Insights intelligence analyst.

We’ll start with the data, and then talk about what the numbers are adding up.

From milk land in a bag, increasing AI investment

Let’s start with the annual outlook. Funding for Canadian AI startups reached a record high in 2019, but the drop in total funding reached just $488 million in 2020. But 2021 is proving to be more than a return to form for Canadian AI startups, with nearly $1.5 billion raised during the third quarter.

The results are a bit uneven, to be fair. Canada saw $895 million in Q2 2021 AI funding across 21 deals and only $446 million in the third quarter, albeit by a slightly higher deal count of 24. But the Q3 2021 dollar result for the country is almost perfect- year 2020 total, hard to be too bearish.

The growth of Canadian AI funding as a part of all venture capital funding in the country is impressive. AI companies have so far raised 16% of known venture capital funds in 2021, a sizable gain over 20% of total dollar volume in 2016.

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