Technology stocks rebounded in 2023 after a challenging year, with cryptocurrency mining and blockchain capturing the attention of investors – contributing to an outsized performance of the technology sector on TSX Venture Exchange’s (TSXV) 2024 Venture 50™ list.

The tech companies on this year’s ranking saw a 178% increase in average share price appreciation over the past year. These industry leaders also posted an average market capitalization increase of 224% during the same period.

Of the 10 technology companies, four involve cryptocurrencies, including Bitcoin miners, blockchain software developers, and hardware manufacturers. Over 2023, these crypto-oriented companies posted a 412% growth in average share price and a 428% surge in market capitalization, reflecting strong revenue postings and a sector which enjoyed a comeback in 2023.

As a nascent industry laden with risk and lacking in the robust regulation of more established sectors, cryptocurrency businesses have been a cause for concern. Perhaps as a result, transparency and regulatory compliance are growing themes in the cryptocurrency landscape.

For example, Vancouver-based DMG Blockchain Solutions Inc. (TSXV: DMGI) has positioned itself as an early industry leader, offering services such as crypto mining audits, digital asset valuations, and forensics services. Capitalizing on its status as an industry frontrunner, the company experienced a 369% increase in its share price in 2023.

“Toronto Stock Exchange has been at the forefront of regulated cryptocurrency investments – including the first Bitcoin ETF – recognizing the need for heightened scrutiny,” said Dani Lipkin, Managing Director, Global Innovation Sector, Toronto Stock Exchange and TSX Venture Exchange. “Meanwhile, TSX Venture Exchange offers an avenue to invest in companies that have undergone a thorough application and due diligence process in order to be publicly listed on the Exchange.”

In addition to the resurgence of cryptocurrency and blockchain, technology holding companies have found success among this year’s top performers, with two businesses specializing in the acquisition, management, and development of other businesses or software.

A notable example is Tiny Ltd. (TSXV: TINY), an investment company that has gained traction using its simple approach to deal-making and applying it to the acquisition of tech companies. Differentiating itself from venture capital and private equity firms, Tiny uses a 30-day process for acquiring companies, providing founders with a pain-free exit, a commitment to run the company using the same culture that was nurtured, a position for the former owner if desired, and a plan to hold the company for the long term.

Also operating under an acquisition-based model, Topicus.com Inc. (TSXV: TOI) is an international company hailing from the Netherlands, which purchases, develops, and manages vertical market software solutions. Uniquely, the company has a decentralized business model, functioning as three autonomous operating groups, TSS Public, TSS Blue, and Topicus, which collectively serve clients across 26 countries. Topicus.com posted a consistent 26% increase in its share price and market cap, reflecting investor interest in its innovative business model, global presence, and broad consumer focus, ranging from organizations to professionals and end-users.

Another leader amidst the AI boom is Diagnos Inc. (TSXV: ADK), a Quebec-based company that uses artificial intelligence to help healthcare professionals detect vision loss and chronic disease through data analysis and image processing. Currently operating in 16 countries, Diagnos’ spot on the Venture 50 list reflects the need for innovation to help ameliorate the ongoing healthcare human resources crisis taking place in Canada and many other countries around the world.

This year’s technology ranking includes companies from a wide range of Canadian provinces, including Alberta, Quebec, and British Columbia, as well as the Netherlands, reflecting the wide reach of TSXV. Over the past year, these companies saw a $2.4 billion increase in market capitalization, demonstrating the value of the Exchange as a platform for leveraging venture capital to spur growth.

As an innovation-oriented industry, the technology sector is quick to react to emerging trends, as was the case this year, with renewed interest in blockchain, cryptocurrency, and asset management companies. The Venture 50 platform is well-suited to these needs, allowing investors to swiftly adapt their positions to an increasingly fast-paced and globalized market.

Overall, Canadian companies make up nearly all (47 of 50) of this year’s list, highlighting the importance of TSXV to the Canadian economy.

To learn more about the technology issuers on the 2024 Venture 50, watch this playlist. You can view the complete list of ranked companies, including those in the clean technology and life sciences, diversified industries, energy, and mining sectors on our website.
 

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