Drop in Funding
According to CB Insights global VC funding dropped by 23% QoQ as of Q2 2022. It does appear that deals in the region are still getting done, but this pullback is starting to creep into this region. It seems every day we hear from more entrepreneurs about how challenging it is to even get meetings with investors outside of the region.
Layoffs across the tech industry have been making headlines, as well. With top Canadian companies such as Wealthsimple, Shopify, and ClearCo announcing layoffs over the last few months. The market has certainly shifted – both in terms of VC opportunities and other employment opportunities.
New Net Jobs
Locally, we are seeing the effects of this market shift in our jobs data. While layoffs have occurred (Introhive recently announced a reduction across their global workforce), we did see an overall positive increase in net new jobs in the region. However there were only 179 net new jobs created in the startup ecosystem throughout Q2 2022. This time last year, there were 926 net new jobs created. This is a significant pullback relative to the growth of previous quarters. Overall the number of employed in this sector currently stands at 13,178.
Of the companies that we are tracking 22% hired employees, 57% had no change and 21% had less staff than at the beginning of the previous quarter. One thing that stood out this quarter, was the sheer amount of acquisitions. It is hard to gauge what the value of some of these acquisitions were, but the capital and talent from these exits will hopefully be recycled into new ventures.
Here are the big headlines out of the region in Q2 2022
- Funding (Total $64.3M)
- Community News
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Top Tech Atlantic Canadian Employers in Q2 2022
Sorted by net new jobs created: