Private Equity
Toronto-based automated customer service Ada has raised $19 million in a Series A financing. The round was led by U.S. venture capital firm FirstMark Capital. It was joined by Leaders Fund and Burst Capital, as well as Bessemer Venture Partners, Version One Ventures and Barney Pell, which backed last year's $2.5 million seed deal. Founded in 2016 by CEO Mike Murchison and Head of Design David Hariri, Ada's platform allows customer service teams to build and manage artificial intelligence-enabled chatbots to automate interactions. It will use the funds raised to expand into new global markets and sectors, enhance the platform, and grow the team.
3 min read · 18 December 2018
Cycle Capital Management has promoted Pascal Drouin to partner, Natalya Novikov to partner and CFO, and Catherine Bérubé to vice president, sustainability, investor relations and public affairs. Drouin, formerly a junior partner, joined Cycle in 2013. He previously served as a risk modeling leader at GE Capital. Novikov, formerly vice president, finance and administration, also joined in 2013. Before then, she was an accountant with MNP. Bérubé, formerly head of communications and public relations, came on board in 2014 following a career in public and governmental relations. Cycle is a Montréal-based clean technology venture capital firm. It oversees assets of $355 million.
3 min read · 17 December 2018
CI Financial Corp (TSX: CIX) has agreed to acquire a majority stake in WealthBar Financial Services Inc, a Vancouver-based online wealth management and financial planning platform. No financials terms were released for the deal, which is expected to close in January. CI Financial, a Toronto-based asset manager and wealth management advisor, said the transaction will help accelerate its digital strategy. WealthBar will continue to operate as a stand-alone business led by CEO Tea Nicola. Two years ago, WealthBar secured $5.5 million in a financing led by Nicola Wealth Management.
3 min read · 17 December 2018
Northleaf Capital Partners has initially closed Northleaf Venture Catalyst Fund II (NVCF II), a fund of funds earmarked for investments in Canadian venture capital funds and technology companies. The amount raised was not disclosed. The Globe and Mail reported NVCF II secured half of its $300-million target. NVCF II was launched with the help of the $400-million Venture Capital Catalyst Initiative (VCCI). It was also backed by Canada Pension Plan Investment Board (CPPIB), Sun Life Financial and TD Bank Group. Ottawa announced in June that VCCI would commit capital to five fund-of-funds managers, including Northleaf, a Toronto-based private-markets investor. NVCF I closed at its $300-million hard cap in 2015.
3 min read · 17 December 2018
Versant Ventures has secured about $134 million (US$100 million) in commitments for a new fund earmarked to finance Canada’s biotech startups. In a news release, the Silicon Valley venture capital firm said Versant Voyageurs I will invest in five to eight companies in tandem with its primary life-sciences funds. Versant said the Canadian sidecar fund aims to address a shortage of risk capital and other resources available to local life-sciences companies. Managing Director Brad Bolzon, who will oversee the fund, said while Canada has “top-tier scientific infrastructure”, its VC and startup ecosystem has “not grown at the same pace.”
2 min read · 17 December 2018
Kensington Capital Partners has raised $85 million in commitments in the first close of Kensington Venture Fund II. Fund II, a fund of funds earmarked for investments in a range of venture capital funds and technology companies primarily based in Canada, was launched under the $400-million Venture Capital Catalyst Initiative (VCCI). Other investors in the first close included BMO Capital Partners, Trend Forward Capital and Kensington Private Equity Fund. The federal government announced in June that VCCI would commit capital to five fund-of-funds managers, including Kensington, a Toronto-based alternative assets investor. Kensington Venture Fund I secured more than $300 million in a final close in 2016.
3 min read · 17 December 2018
Effenco, a Montréal-based electric and connected mobility platform, has raised $12 million in a Series A financing. The round was backed by BDC Capital, which invested $6 million, and Investissement Quebec. Founded in 2006 by engineers, Effenco develops and markets hybrid solutions to help heavy vocational trucks reduce operational costs and greenhouse gas emissions. Led by CEO David Arsenault, Effenco will use the funds raised to fuel growth and commercialize software that can rapidly detect and interpret behavioural, mechanical and logistics problems. BDC invested through Ottawa's $700 million clean technology strategy, announced in January.
4 min read · 14 December 2018
Lightspeed, a Montréal-based cloud point-of-sale system for retailers and restaurants, has acquired ReUp, a Toronto-based customer loyalty solution. No financial terms were disclosed. ReUp has been rebranded as Lightspeed Loyalty, an app that provides a range of tools to merchants for targeting and communiciating with new and existing customers. Founded in 2005 by CEO Dax Dasilva, Lightspeed raised US$166 million ($222 million) last year in a Series D financing led by Caisse de dépôt et placement du Québec.
3 min read · 14 December 2018
Opus One Solutions, a Toronto-based smart grid software engineering company, has raised a Series B financing. The undisclosed round was led by Canadian impact venture capital firm Renewal Funds. It joins the company's strategic investors Energy Impact Partners and Engie. Founded in 2011 by President and CEO Joshua Wong, Opus One’s technology helps utility partners gain visibility into electricity distribution systems and better manage distributed energy resources. The funds raised will be used to expand offerings in North American and global markets. Opus One is the first investment of Renewal's fourth social and environmental impact fund.
5 min read · 14 December 2018
Caisse de dépôt et placement du Québec has partnered with Mila to create Espace CDPQ-Axe IA, a Montréal-based hub for artificial intelligence (AI) startups. Hub projects must show potential for technological acceleration at Mila, an AI partnership of the Université de Montréal and McGill University, with the support of HEC Montréal and Polytechnique Montréal. Selected companies will spend 12 months at Espace CDPQ-Axe IA, gaining access to advice, coaching and other resources to help commercialize their solutions. To date, nine startups have been invited to participate.
5 min read · 13 December 2018
