The State of SaaS in Canada 2021

It’s here. 

If you were lucky enough to attend SAAS NORTH, you had the opportunity to hear from L-SPARK’s Executive Managing Director, Leo Lax, on the State of SaaS in Canada. 

The wait is over for our annual State of SaaS report.  You can access the report and all its findings here. 

Let’s break down a few key highlights right now. 

The world has changed drastically,  not just because of COVID-19 but because of the sheer number of opportunities in the Canadian SaaS market today. 2020 saw over $1.17B USD in total capital invested in Canadian SaaS Companies, and 2021 has seen even more growth in the Canadian SaaS landscape.

In 2021 alone,  total capital invested in Canadian SaaS was over $9.16B USD with no signs of slowing down. The largest deal of the year was just over $470M USD, and the largest exit came in at $2.75B USD. 

Here’s a look at a few of this year’s most notable exits + deals in Canadian SaaS:

Verafin acquired by tech giant Nasdaq for $2.75B USD

The St. John’s based anti-fraud company was acquired in the largest exit of the year at $2.75B USD. 

“Verafin’s cloud-based, consolidated Financial Crime Management platform provides financial institutions with a complete solution to detect, investigate and report financial crime” Learn more about Verafin here

This acquisition was one of many that took place throughout 2021, and continues to reinforce the importance of SaaS based solutions to issues like cybersecurity.

Read the full acquisition story here.

FreshBooks Acquires FastBill, boosting Canadian growth for the SaaS FinTech company

FreshBooks, a Canadian  Financial tech company focused on freelance + small service providers, has announced the acquisition of a FastBill, the German based financial tech company. 

Canada continues to see growth in the financial tech industry, with more FinTech companies launching and succeeding right here in Canada.

Read the full article here. 

Autodesk Acquires Upchain

L-SPARK Alumni, Upchain, has raised over 7 million in funding since they began their journey. Upchain was part of our SaaS Accelerator back in 2016. 

The Upchain platform was designed to address a number of issues that have long hindered communication and collaboration between all stakeholders involved in the product life cycle. 

The acquisition will allow Autodesk to integrate Upchains SaaS Solution into their platform.

Read the full story here.

Hootsuite Acquires HeyDay

Another acquisition that was big news around here! L-SPARK Alumni, HeyDay, was acquired by Hootsuite for $60M CAD. HeyDay is a conversational AI tool that allows brands to deliver personalized customer experiences through 1:1 messaging conversations. 

HeyDay was a part of our SaaS Accelerator program in 2017 and has had multiple successful fundraising rounds and has now been acquired. 

Read more about the acquisition here. 

ServiceNow closes $230 Million USD Acquisition of Montreal’s Element AI Inc.

Silicon Valley based company, ServiceNow, acquired the Canadian AI company earlier this year as part of their strategy to accelerate their AI capabilities. It’s another example of Canadian SaaS leading the way in the AI industry.

Read the full story here. 


For full access to this year’s State of SaaS Report click here.

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