Canada

Version One Ventures invests in cybersecurity startup Kobalt

Kobalt Security, a Vancouver-based cybersecurity company, has raised an undisclosed investment from Canadian early-stage venture capital firm Version One Ventures. The investment was part of a financing led by two of Kobalt's co-founders, Pankaj Agarwal and Boris Wertz, Version One's founding partner. BetaKit reports the round's total value at $1 million. Launched in 2018 and led by CEO Michael Argast, Kobalt is focused on bringing cybersecurity monitoring-as-a-service to small and mid-sized organizations. Kobalt is Version One's first cybersecurity deal and the first startup the investor has helped incubate.

Elaine Kunda’s Disruption Ventures makes Hostfully its first woman-led deal

Canadian women-focused venture firm Disruption Ventures cut its first cheque, backing a startup that serves the fast-emerging vacation-rentals sector. Disruption invested in the US$1 million seed round of Hostfully, a San Francisco software provider that helps rental-property managers streamline operations and engage with guests. Disruption Managing Partner Elaine Kunda said Hostfully matches the type of woman-founded startup her firm is looking to back. Kunda in 2018 launched Disruption to invest up to $1 million in North American early-stage tech companies founded and managed by female entrepreneurs. A second deal, this one located in Canada, is in the offing, Kunda said.

Biolux Research closes $14 mln Series A round led by Venrock

Biolux Research, a Vancouver-based developer of light-accelerated orthodontic products, has raised $14 million in a Series A financing. The round was led by Venrock, a U.S. technology and healthcare venture capital firm. It was joined by Correlation Ventures and other investors. Founded in 2007, Biolux is the maker of OrthoPulse, a non-invasive device that uses low levels of light energy to accelerate orthodontic treatments. The product is currently being sold in the United States, Europe and Asia. The company also announced the appointment of David Thrower, a medical device industry executive, as its new CEO.

Pangaea Ventures raises $95 mln for fourth advanced-materials fund

Canadian venture capital firm Pangaea Ventures has closed its fourth advanced-materials fund, raising about $95 million (US$70 million) in commitments. Pangaea Ventures Fund IV was backed by a range of limited partners, including VanCity and BC Tech Fund, managed by Kensington Capital Partners. Pangaea also increased its strategic investors to twenty-five. Fund IV backers include existing investors CoorsTek, JSR and Mitsubishi Chemical Holdings and new investors Adidas, Doosan, Henkel, Lam Research, PTT Global, Sekisui, Severstal, Shin-Etsu and TOSOH. Vancouver-based Pangaea, founded in 2001 by General Partner Chris Erickson, said the fund will invest in up to 14 materials-driven companies addressing the energy, electronics, health and sustainability sectors.

BMO unveils tech financing, advisory group led by Andre Salvi

Bank of Montreal (BMO) has launched a new specialized group to provide advice and financing to companies in Canada's technology sectors. BMO's Technology and Innovation Banking Group will support companies at every stage of their life-cycle, from startup to post-exit or initial public offering, and help them build cross-border operations. The group is headed by Andre Salvi, whose prior BMO roles include serving as a private equity professional at BMO Capital Partners and leading partnerships with financial technology companies. He will be joined by Managing Directors Devon Dayton and Deirdre Bergin.

Ninepoint Partners joins Finitive's $6 mln seed financing

Finitive, a New York-based financial technology platform, has raised about US$6 million in a seed-stage financing. The round was led by Atomic Labs and joined by other investors, including Ninepoint Partners, a Canadian private credit fund manager. Founded in 2017, Finitive provides institutional investors with access to alternative lending investments, including specialty finance, online lending, marketplace lending and private credit funds. Finitive will use the funds raised to develop its platform through machine learning, artificial intelligence, workflow automation and data analytics initiatives.

CIBC provides Whitecap's Fund IV with capital call facility

CIBC Innovation Banking has provided a capital call facility to the fourth early-stage technology fund of Canadian venture capital firm Whitecap Venture Partners. Terms weren't disclosed for the facility, which allows Whitecap IV to make investments in portfolio companies prior to calling capital from the fund's limited partners. Earlier this year, Toronto-based Whitecap initially closed Whitecap IV, securing most of its $125 million target. CIBC Innovation Banking is the technology lending arm of Canadian bank CIBC.

Strato Automation secures mezz financing from BDC Capital

Strato Automation, a Montréal-based maker of smart building control products, has raised mezzanine financing of $1 million from BDC Capital. BDC invested through its Growth and Transition Capital group. Founded in 2010 and led by President and CEO Pierre Samson, Strato designs devices allowing automated and centralized control of all heating, ventilation and air conditioning systems of buildings. In 2017, the company was acquired by a group of shareholders. The funds raised from BDC completes a second financing to accelerate the group's plan to further develop Strato's products and distribute them on a larger scale.

Mistral Venture Partners joins Ceipal's $7.5 mln growth round

Ceipal Corp, a Rochester, New York-based cloud human resource management platform, has raised US$7.5 million in its latest financing. U.S. growth equity firm Resolve Growth Partners backed the deal, as did Canadian early-stage venture capital firm Mistral Venture Partners, an existing investor. Founded in 2015, Ceipal provides a software-as-a-service platform that automates front- and back-office business operations of staffing companies. It serves more than 1,000 customers and 12,000 recruiters globally. The funds raised will be used to scale Ceipal's product development, sales and support teams.

NACO appoints Hurt Capital's Claudio Rojas as new CEO

The National Angel Capital Organization (NACO) has appointed Claudio Rojas as its new CEO. Rojas has more than 14 years of experience in finance, law and business and has worked with several organizations active in Canada's innovation ecosystem. He is currently managing director of Hurt Capital, a founder-focused investment and venture capital platform. Rojas replaces Yuri Navarro, who stepped down as NACO's CEO earlier this year. Rojas replaces Yuri Navarro, NACO's CEO since 2012. Toronto-based NACO represents more than 40 networks consisting of over 3,000 angel investors across Canada.