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TMX POV - Public Venture Capital: An Alternative Financing Option for U.S. Growth Companies

TMX POV - Public Venture Capital: An Alternative Financing Option for U.S. Growth Companies

As a U.S. high growth company looking for funding, you are likely considering all capital raising options. While many entrepreneurs tend to only consider the traditional route - from angel investors to venture capitalists to being acquired - there are other options that may be a better fit for your company's long term growth strategy.

With the resurgence of Special Purpose Acquisition Corps (SPACs) and increased amounts allowed under equity crowdfunding rules, there are now more financing options than ever, including the public markets. But with 218 IPOs completed in the U.S. year to date, raising a total of US$80B, the average IPO is US$367M… not exactly early stage growth capital. (Source: Renaissance Capital as of July 13, 2021)

North of the border is a different story. The Canadian capital markets are unique in that TMX Group owns and operates a two-tiered marketplace serving companies from early stage pre-revenue companies on TSX Venture Exchange (TSXV) to multi-billion dollar established businesses on Toronto Stock Exchange (TSX). The idea of going public "early" may not be intuitive to most U.S. companies, but it is an important option worth considering.

TSX is the senior market for larger, more stable companies with a track record. The typical financings on TSX fall in the $50-$150M range and have an average market cap of CDN$4.7B. These companies often benefit from increased analyst coverage and attracting large institutional investors in Canada and the U.S.

For smaller, early stage growth companies, TSXV is a unique platform that is tailored to companies of this size. TSXV provides financings typically in the $5-$25M range and TSXV issuers have an average market cap of CDN$65M.

Breaking Records in the Innovation Sector

2020 was an unexpected and incredible year for financings and listings by innovation companies on TSX and TSXV. And Q1 2021 broke many records including:

  • Best Q1 for capital raised on TSX and TSXV in the last 15 years
  • Best Q1 for corporate IPOs on TSX in the last 15 years
  • All-time best quarter on TSX for the innovation sector IPOs and new listings

Q1 also provided some significant milestones:

Recent U.S. Activity on TSX and TSXV

In the last six months, several U.S. companies have listed and raised growth capital on TSX and TSXV (see chart below) representing diverse sectors. In financings YTD June 30, 2021, the 112 U.S. companies currently listed on TSX (50) and TSXV (62) raised a total of CDN$745M. Notably, Village Farms International Inc. (TSX:VFF) did the largest capital raise of CDN$172M.

Some recent U.S. highlights:

  • Based in North Carolina, Tantalus System Holdings (TSXV:GRID) provides smart grid solutions. It listed on TSXV in February 2021, raised CDN$10M, and quickly graduated to TSX, the senior market, in May.
  • The Real Brokerage Inc. (TSXV: REAX) (New York), a technology-powered real estate brokerage operating in 31 states, began trading on NASDAQ in June and is now dual-listed.
  • Two recent new listings in June connected to the U.S. were: Salona Global Medical Device Corporation (TSXV: SGMD), a San Diego-based acquisition-oriented medical device company; and Kovo Healthtech (TSXV: KOVO), based in Vancouver and Colorado offering revenue cycle management services to digitally track and manage patient care.


YTD June 2021

TSX HempFusion Wellness Inc. CBD Life Sciences (CBD)
TSX Subversive Acquisition LP SVX SPAC (completed Qualifying Acquisition: InterCure Ltd in April 2021)
TSX Tilray Inc. TLRY Life Sciences (cannabis)
TSX Vintage Wine Estates, Inc. VWE Consumer Products (vineyard)
TSX Tantalus System Holdings GRID Technology (smart grids)
TSXV Skylight Health Group Inc. SHG Life Sciences (medical care services)
TSXV ProStar Holdings Inc. MAPS Technology (mapping software)
TSXV PsyBio Therapeutics Corp. PSYB Life Sciences (psychedelics)
TSXV Salona Global Medical Device SGMC MedTech (acquisitions)

Access the list of all U.S. listings on TSX and TSXV here.

For more information on public venture capital and exploring going public in Canada, contact Delilah Panio, VP of US Capital Formation, at or visit

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Delilah Panio

Vice President, U.S. Capital Formation, Toronto Stock Exchange and TSX Venture Exchange

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* Unless otherwise noted, all data is sourced from the Market Intelligence Group of TMX Group as of June 30, 2021.

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