Capital Raised on the TSX Venture Will Decline 70% from 2011
As of June 30, 2015, the TSX Venture in aggregate has raised $1.7 billion in capital and is on pace to raise $3.4 billion by the end of the year. This is a 35% decline from last year and almost a 70% drop from 2011.
The number of new issuers has also decreased substantially. There has only been 43 new listings year-to-date, versus the 122 in 2014 and 334 in 2011. Companies are struggling to stay afloat and the amount of companies dropping from the TSX Venture quickly outpaces the ones coming aboard.
The TSX Venture is experiencing a market shake-out, or the consolidation of a sector in which companies are either eliminated or acquired. Unfortunately, further bankruptcies are on the horizon and only the strong will survive and experience the next bull market like no other. It’s just a matter of determining which companies are poised to do that.