Why Nigeria needs to act fast towards VC investments

There will be big geopolitical games from the mid of 2020. Members of the big 7 want to leave China and take their companies in another place. Nigeria has to act fast as Japan has already asked local companies to stop manufacturing and investing in China and find another spot.

The same scenario goes with the US as Trump wants local companies to go back to the US or find some other place. VC investments are very important for the economy. As the manufacturing and tech development grows in-country, VC investments and angel investors will come naturally.

Canada has to be a prime example as the country had a record-breaking year for VC investments and it lead the economy back to the top 10 economies of the world.

The Canadian VC investments reached new heights last 2019. According to the Canadian Venture Capital and Private Equity Association (CVCA), the Canadian venture (VC) investments recorded 6.2 billion CAD in 539 deals.

Venture Capital Investments Set a Record in 2019

The CVCA got this report when it looked at the Canada deals at private equity (PE) and VC. It got its data from the Hockeystick platform, which is from Toronto.

In the data, you would how the Canadian VC investments make significant growth of 69 percent per year. You would see that in 2018, the investment was approximately 3.7 billion CAD, which tripe the investment amount in 2013. 

In 2019, the average deal size grew up to 5.6 million CAD. It was a significant 11 percent increase from the 2018 average, which was 5 million CAD.

Kim Furlong, the CVCA CEO stated that the 2019 VC investment was more than positive, which was a good indication of the investors’ confidence in Canada. He added that Canadian business people continuously grow their businesses, and the VC of Canada helps the innovations in the country improve.

On the other hand, PwC produced different findings in their report in their MoneyTree. According to them, the VC investments only reached up to 4.1 billion CAD in the previous year.

The reason for this difference is due to the different sources of data. The PwC got theirs from the CB Insights, while the CVCA got theirs from the Hockeystick.

Along With VC Investments, Digital Economy Had a Booming Year

The one that received the majority of the VC investment is the information and communication technology (ICT) companies. It received a total of 66 percent last year, which was 4.1 billion CAD and doubled.

The life sciences sector is the next one that received the 17 percent share from the Canadian VC investments with 1.1 billion CAD investments in more than 177 deals. 

The cleantech received the seven percent share from the VC investment with more than 26 deals and approximately 407 million CAD.

The CVCA tracked the ones that made the most significant exits from the previous year, which they describe as healthy. Their report also revealed that the period that contributed to this achievement was the fourth quarter. It was the time when the investment reached 1.6 billion CAD, and the deals grew to more than 144.

Trudeau believes in the digital economy. Prime minister has been preaching about it since 2016. Along with preaching, the leader of the country has created a roadmap for solid digital economy in this decade. The roadmap is divided into different waves and the first wave is already in progress. Online gaming was the first that had a big impact on the digital economy. Team working on the economy allowed digital gaming platforms to diverse their profiles and offer international players different types of casino games. Platforms have offered a wide range of games and it became an advantage. Along with games, digital casinos were allowed to install crypto payments. Online casino with real money options got a chance to offer crypto payments and transactions through various financial technologies. The digital casino industry is growing every year. In 2019, the casino industry had a record-breaking year that leads to contributing up to 20 billion dollars to the country’s economy. First wave of digital economy had a big impact on the success of the digital gaming industry. That could be biggest lesson for Nigeria as being on top of the tech trends will pay it’s dues sooner or later. 

Economy Is Going Up as Canada Is Back in Top Ten Economies of the World

Because of this achievement, the World Economic League Table placed Canada in one of the top 10 of the largest economy in the world. Canada managed to get into the 10th place in 2019, where its GDP reached up to 2.251 trillion CAD. 

As a result, Canada ousted Korea to get into the top 10. However, it fell into the 11th place because of the trade war between the US and China.

It was a great achievement that the Centre for Economics and Business Research (CEBR) did not see coming. This UK-based organization predicted a few years ago that Canada would not make it into the top 10. However, the organization failed to see its comeback.

However, the CVCA reported that the PE report revealed decline compared in 2018, despite the Canadian VC investment’s success. The PE went down to 19 billion CAD from the 22.7 billion CAD in 2018. 

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