Private Equity
The New Brunswick government has committed $10 million to Build Ventures Fund II, the second early-stage technology fund of Canadian venture capital firm Build Ventures. Halifax-based Build, which targets opportunities in clean technology, life sciences, information technology and other high-growth sectors in Atlantic Canada, raised $65 million for Build Ventures Fund I in 2013. Fund I invested in five New Brunswick companies, including Fredericton-based agricultural predictive analytics provider Resson, which closed a $14 million Series C financing earlier this year. Build is led by General Partners Patrick Keefe and Rob Barbara.
2 min read · 01 August 2018
Venture capital investment in Canadian technology companies continued at a strong pace in the first half of 2018, with $2.5 billion deployed to 282 financings, according to final data released by Thomson Reuters. In dollar terms, this marked the strongest first half in 17 years and the sixth time in the past seven quarters that companies raised more than $1 billion. Foreign funds played a key role in the first half as activity by Canadian funds slumped to 46 percent of total VC invested. Dealmaking in information technology sectors reflected $1.7 billion at the end of June, while investment in clean technology sectors hit $462 million. Life sciences sectors, however, saw a sixth consecutive quarter of declining activity, netting only $250 million.
4 min read · 01 August 2018
Profound Medical Corp (TSX: PRN), a Toronto-based medical device company focused on treatments for prostate cancer and other diseases, has raised an $18.75 million term loan from CIBC Innovation Banking. Arun Menawat, Profound’s CEO, said the deal will allow the company to consolidate debt and increase working capital to support growth. Earlier this year, Profound closed a $34.5 million bought deal financing that included an investment from its founding shareholder, Canadian life sciences venture capital firm Genesys Capital. The company is also backed by BDC Capital's Healthcare Venture Fund. CIBC Innovation Banking launched in January with CIBC’s acquisition of Canadian specialty finance firm Wellington Financial.
3 min read · 01 August 2018
New Zealand accounting software company Xero has agreed to acquire Hubdoc, a Toronto-based data capture solution that helps accountants, bookkeepers and small businesses streamline administrative tasks. The cash-and-stock deal is valued at about $91 million (US$70 million). Hubdoc, founded in 2011 by co-CEOs Jamie McDonald and Jamie Shulman, serves customers in North America, the United Kingdom and Australia. It will continue to operate on a standalone basis, led by existing managers. Hubdoc last year raised about $6.4 million in a seed-stage financing led by BDC Capital and Round13 Capital and joined by Hyde Park Venture Partners and other investors.
4 min read · 01 August 2018
Mike Woollatt, CEO of the Canadian Venture Capital and Private Equity Association, is leaving the industry organization for Ontario Municipal Employees Retirement System, PE Hub Canada has learned. Woollatt told PE Hub Canada in an email that he is joining OMERS Platform Investments, the innovation arm of the $95 billion pension system. The division includes OMERS Ventures, led by CEO John Ruffolo. Woollatt, who joined CVCA in 2014, will take on the new role of director of strategic partnerships at the end of the summer.
2 min read · 31 July 2018
Business Development Bank of Canada (BDC) today provides financing and advisory services to 56,000 entrepreneurs, a record number and up 14 percent from last year, according to BDC's fiscal 2018 annual report. Capital managed by BDC Capital, the mezzanine, growth equity and venture capital investment arm of BDC, currently totals more than $3 billion, the report said. The mid-market portfolio of the Growth and Transition Capital division also reached a major milestone in fiscal 2018, exceeding $1 billion in investments. BDC reported earned consolidated net income of $818.3 million in fiscal 2018 as well as a payment of a $69.7 million dividend to the Canadian government.
5 min read · 26 July 2018
Montréal-based preclinical-stage biotechnology company Inversago Pharma Inc has raised $7 million in a Series A financing. The round was led by Canadian life sciences investors Genesys Capital and AmorChem. They were joined by JDRF T1D Fund, Accel-Rx, Anges Québec Capital, Anges Québec, Tarnagulla Ventures and several angel investors. Inversago, founded in 2015 by CEO François Ravenelle, is developing new generations of cannabinoid-1 receptor (CB1) inverse agonists for the treatment of Prader-Willi Syndrome, type 1 diabetes, obesity and other metabolic disorders. The company will use the funds raised for its development plan and to advance its CB1 platform.
4 min read · 25 July 2018
LoginRadius, a Vancouver-based customer identity and access management platform, has raised $17 million in a Series A financing. ForgePoint Capital and M12, the venture capital arm of Microsoft, led the round. The company's existing backers, including Real Ventures, BDC Capital and Yaletown Partners, also invested. Founded in 2012, LoginRadius' platform helps over 3,000 businesses securely manage customer identities, deliver a unified digital experience, and comply with privacy regulations. It reports achieving triple-digit annual growth over the past two years. LoginRadius will use the funds raised for product innovation, customer acquisition and global growth.
4 min read · 25 July 2018
Tilray Inc, a Nanaimo, British Columbia-based cannabis cultivator, processor and distributor, has closed its initial public offering in the United States. The company, which last week listed on the Nasdaq Global Select Market under the symbol TLRY, raised more than $232 million (US$176 million) with the full exercise of the IPO's greenshoe option. Tilray will continue to be majority owned by U.S. cannabis private equity firm Privateer Holdings, which has held and funded the business since its founding in 2014. Tilray's public debut valued it at about $2.6 billion (US$2 billion), Reuters reported.
3 min read · 24 July 2018
Stem Inc, a U.S. artificial intelligence-enabled energy storage provider, has raised $200 million from Ontario Teachers’ Pension Plan. The deal's proceeds will support Stem's acquisition of Ontario energy storage projects and delivery of the company's systems, which help manufacturers and other industrial customers control energy consumption costs. Ontario Teachers’ Senior Managing Director Dale Burgess said the investment attests to the value of a "firm and competitive financing solution for industrial customers in Ontario." The pension fund also backed Stem’s Series D financing, which closed this week at nearly US$110 million.
4 min read · 24 July 2018
