Atlantic Canadian startups raised $117 million in the third quarter of 2023, according to data from the Canadian Venture Capital and Private Equity Association. Much of that investment capital was tied to the largest funding round in Nova Scotia history: Halifax-based CarbonCure’s gangbusters US$80 million raise from July.

Nationally, venture capital has been recovering from last year’s downturn, the CVCA’s Venture Capital Market Overview reports. But on the East Coast, removing the CarbonCure deal from the third quarter fundraising totals reveals a less cheerful picture, with other companies across all four provinces having raised just a combined $11 million.

Counting CarbonCure’s raise, which was worth the equivalent of about C$106 million and led by Swiss impact investor Blue Earth Capital, Nova Scotia companies raised $111 million. Without it, they raised $5 million. New Brunswick companies raised about $2 million across four deals, in Newfoundland and Labrador the CVCA records one deal worth about $4 million, and for the second time this year, Prince Edward Island companies failed to close any equity funding rounds.

Those figures are down significantly from the third quarter of 2022, when two provinces, Newfoundland and Labrador and New Brunswick, radically outperformed their entire first halves, raising $25 million and $40 million, respectively.

The CVCA does not publish funding data broken down by quarter, instead favouring cumulative, year-to-date figures. Entrevestor has calculated third quarter results by subtracting the first half data published earlier in the year from the latest totals.

Even omitting CarbonCure’s raise, though, the third quarter data is an improvement on this year’s second quarter, when New Brunswick companies raised just $3 million, Nova Scotia startups raised $6 million and Newfoundland raised $7 million.

If we include CarbonCure, meanwhile, Atlantic Canada’s third quarter alone saw companies raise more than half of its $230 million total for all of 2022.

Nationally, venture capital investment amounted to $1.2 billion across 134 deals — an improvement from $196 million across 144 deals for the same period the year prior.

“These numbers signal a return to pre-pandemic normalcy,” wrote CVCA chief executive Kim Furlong. “The primary focus on growth has been replaced with a focus on solid businesses with sustainable plans and a path to profitability.

“IPOs are making a comeback after 18 months, and a robust early-stage pipeline promises new businesses positioned to contribute to Canadian innovation, job creation, and the overall economy.”