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

Hello… I’m Delilah Panio, Vice President of US Capital Formation for Toronto Stock Exchange and TSX Venture Exchange. As a proud new member of the Austin Technology Council (ATC) and sponsor of the upcoming Leadership Dinner on August 18th, I am sharing a series of three articles on public venture capital, how to know if going public is the right fit for your company, and why the Canadian capital markets may be your stepping stone to a U.S. exchange. I hope you can join us on the 18th!

As a U.S. high growth company looking for funding, you are likely considering all capital raising options. While many tech entrepreneurs tend to only consider the traditional route – from angel investors to venture capital 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 TSX listed companies 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.

Here is what has been happening on TSX and TSXV so far this year…

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:

  • TSX became the first market in the world to list Bitcoin exchange traded funds (ETFs) when the Purpose Bitcoin ETF began trading in February.
  • Telus International became the largest tech IPO in TSX history raising CDN$1B in February.
  • became the largest new innovation sector listing in TSXV history when it was spun out of Constellation Software in January.

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 and offers revenue cycle management services to digitally track and manage patient care.


YTD June 2021


  • HempFusion Wellness Inc.; TSX:CBD; Life Sciences (CBD)
  • Subversive Acquisition LP; TSX:SVX; SPAC (completed Qualifying Acquisition: InterCure Ltd in April 2021)
  • Tilray Inc.; TSX:TLRY; Life Sciences (cannabis)
  • Vintage Wine Estates, Inc.; TSX:VWE; Consumer Products (vineyard)
  • Tantalus System Holdings; TSX: GRID; Technology (smart grids)


  • Skylight Health Group Inc.; TSXV:SHG; Life Sciences (medical care services)
  • ProStar Holdings Inc.; TSXV:MAPS; Technology (mapping software)
  • PsyBio Therapeutics Corp.; TSXV:PSYB; Life Sciences (psychedelics)
  • Salona Global Medical Device; TSXV:SGMC; MedTech (acquisitions)

Access the list of al U.S. listings on TSX and TSXV at

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

This article is #1 of a three-part series for U.S. companies on TSX and TSXV. Stay tuned in the next few weeks for article #2 on “Going Public Considerations: Should I Be Taking My Company Public Now?”

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

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