News has been coming in on the venture capital market in Canada and the news is definitely good. Funding is up and significantly so compared to the last few years.

The Great Recession did massive damage to venture capital funding in the United States. Canada was no different. The amount of money available to applicant companies was very limited and really created a stranglehold on development in the country. 

The second quarter of 2010 was a time of change in the industry. VC funding was up a staggering 54 percent over the previous year. The total investment amount was in excess of $300 million dollars. That equated to over a $200 million increase compared to the 2009 second quarter. That is an impressive increase and should be a very positive sign for Canadian companies looking for funding. 

The numbers throughout the VC industry were impressive as well. Total funds being invested in VC were up. Buyouts from developed companies nearly doubled and staged cash flow was also up and steady. All of this paints a picture of a VC industry that is starting to show solid signs of coming out of a very dry period. 

The interesting thing about the Canadian VC market has been its disconnect from the general economic conditions in the country. Canada has seen a slow down in its economy, but nothing notable compared to those found in other countries, particularly the United States. Despite this nominal dip, the Canadian VC market tanked when it should have been much more stable than other markets. Whatever the reason for this, the stagnant period appears to be coming to an end.