Private Equity
Diagram Ventures has raised $55 million in the close of its second fund, earmarked for creating and investing in early-stage companies focused on innovation in the financial and insurance sectors. Fund II exceeded its $50 million target with the help of anchor investor Portag3 Ventures, which is backed by Canadian holding company Power Corp. It was joined by 75 angel investors, including Andreessen Horowitz General Partner Angela Strange and former U.S. Ambassador Bruce Heyman, as well as family offices. Led by CEO François Lafortune, Montréal-based Diagram also announced the hire of Hamnett Hill as a partner. Hill, a serial entrepreneur, co-founded Smooch Technologies, acquired last month by Zendesk.
5 min read · 11 June 2019
New Brunswick Innovation Foundation (NBIF) has invested $200,000 in TurboPlay, a Fredericton-based developer of a video game marketplace. The investment was part of an undisclosed round that also included several angel investors. Founded in 2018 by CEO and co-CTO Vince McMullin, COO John Nguyen, co-CTO Royal O'Brien and CMO Lisa Weeks, TurboPlay is building a personalized marketplace for independent game players and developers to sell their digital games and related downloadable content. It will use the round's proceeds to hire developers and customer support staff and for enhanced sales and marketing efforts.
3 min read · 10 June 2019
Privateer Holdings has agreed to merge with portfolio company Tilray Inc (Nasdaq: TLRY), a Nanaimo, British Columbia-based cannabis researcher, cultivator, producer and distributor. The deal will see Privateer, which holds 75 million Tilray shares, or a 77 percent stake, become a subsidiary of Tilray through a share exchange. Tilray shares distributed as a result of the merger will be subject to a lock-up, allowing for their sale only under certain circumstances over a two-year period. Privateer, a U.S. cannabis private equity firm backed by Silicon Valley investor Peter Thiel, is Tilray's founding investor. The company went public last year, raising US$153 million.
4 min read · 10 June 2019
Desjardins Group has launched a $45 million strategic financial technology fund. The fund, managed by Desjardins Capital, the Canadian financial co-operative's private investment arm, will invest in businesses that use innovative models to address existing or emerging issues. The fund has already made a first undisclosed investment, backing X-Telia, a Longueuil, Québec-based wireless network operator serving businesses and cities that require secure, long-range, low-power and low-cost connectivity. The investment's proceeds will allow X-Telia to grow its network across rural Québec and help La Coop fédérée modernize its practices.
3 min read · 10 June 2019
McRock Capital has led the Series B financing of Decisive Farming Corp, an Irricana, Alberta-based farm management software provider. The undisclosed round was joined by Export Development Canada (EDC). McRock, a Canadian industrial internet-of-things venture capital firm, also led the company's $6 million Series A financing in 2016. Founded in 2011 and led by CEO Remi Schmaltz, Decisive Farming provides precision agriculture and data analytics in an integrated platform to help increase the profitability, sustainability and technology ease-of-use of farmers. It will use the funds raised for growth through acquisitions, an enhanced sales team, and deployment of technologies including artificial intelligence.
3 min read · 10 June 2019
Platform Group, a Toronto-based capital markets financial technology company, has raised $1.5 million in a seed-stage financing. The round was led by MaRS Investment Accelerator Fund (IAF) and Blindspot, both Canadian early-stage technology investors. They were joined by strategic and professional backers. Founded in 2017 by CEO David Whyte and COO Mark Fasken, Platform is the creator of Irwin, a software product designed to help public businesses, including small- and mid-cap businesses, to target, monitor and interact with global investors. Platform will use the funds raised to scale the engineering, product, research and support teams for Irwin.
3 min read · 06 June 2019
In his 2019 Canadian venture and startup predictions, OMERS Ventures Managing Partner Jim Orlando laments the lack of big exits of VC-backed tech companies in 2018. The market in Canada appears to be doing a better job on this front this year. Exit activity since January has included some major acquisitions as well as the return of VC-backed IPOs after a nearly two-year hiatus. Perhaps the highest profile of these events was the $276 million TSX IPO of Lightspeed, a Montréal retail and restaurant POS and e-commerce solution, closed in March.
1 min read · 06 June 2019
Canadian water-focused growth equity firm XPV Water Partners has invested in Metron-Farnier, a Boulder, Colorado-based smart water technology company. No financial terms were disclosed. Founded in 1990, Metron-Farnier provides residential and commercial water meters augmented with smart meter technologies. It has installations throughout the United States and serves some of the country's largest utilities. Metron-Farnier said the partnership with XPV will help scale the company to meet market demand.
3 min read · 06 June 2019
Intelex Technologies, a Toronto-based provider of software solutions for environment, health, safety and quality (EHSQ) programs, has agreed to be acquired by Industrial Scientific for about $770 million (US$570 million). The sellers are JMI Equity and HarbourVest Partners. JMI, a U.S. growth equity firm, four years ago led a $160 million financing of Intelex. The deal is expected to close by Q3 2019, after which Intelex will operate as a stand-alone unit of Industrial Scientific. Based in Pittsburgh, Pennsylvania, Industrial Scientific is a gas detection management and safety solutions affiliate of Fortive Corp (NYSE: FTV). Industrial Scientific and Intelex said the acquisition is the largest in the history of EHSQ pureplay vendors.
4 min read · 06 June 2019
TVM Capital Life Science and Caisse de dépôt et placement du Québec (CDPQ) are the 2019 recipients of the Canadian Venture Capital & Private Equity Association's (CVCA) Deal of the Year awards. TVM Capital won in the venture capital category for the 2018 sale of AurKa Pharma, a Montréal-based developer of a cancer treatment for solid tumors, to Eli Lilly. The US$575 million deal generated an IRR of 348 percent and 9.3 x multiple of invested capital. CDPQ won in the private equity category for the 2018 sale of Camso, a Magog, Québec-based maker of off-the-road tires and rubber tracks to Michelin. The transaction was valued at US$1.45 billion.
5 min read · 05 June 2019
