Venture capital investment is concentrated in sectors characterized by technological innovation. Slightly over half of the US$1.493 billion of new venture capital investment in Canada during 2006 went into the information technology industries and almost 30 percent of the annual funds was invested in the life sciences sector.

In 2006, a total of 118 Ontario companies were financed by venture capital investment, including 82 Ontario infotech firms which received US$455 million in venture capital. The growth in the Ontario’s communications and networking sector resulted in a major boost for the US$778 million that venture investors put in the IT sectors in Canada.

Other than telecommunications, investors continued to flow funds to opportunities in other infotech sectors in Ontario including semiconductors, software, internet focus, and electronics and computer hardware. Venture capital investors were also active in Ontario-based life science companies in the biopharmaceuticals, medical devices and equipment, medical/biotech software, and information services sectors.