Canada

Canadian VC sees biggest Q1 since dot-com era as top deals nab $927 mln

Canada’s venture capital market has started the year with a bang. The top 10 first-quarter VC financings drew a substantial $927 million from investors. That’s up 40 percent from the $661 million raised by the top 10 deals a year earlier and close to twice the $491 million raised by the top 10 deals in Q1 2016. The estimate is based on PE Hub Canada’s list of the largest rounds announced from January through March, supplemented by Thomson Reuters data.

Frontier Capital invests in growth of Agreement Express

Agreement Express, a Vancouver-based onboarding automation platform for financial services, has secured an undisclosed majority investment from Frontier Capital, a U.S. growth equity firm. As a result of the deal, Frontier Managing Partner Richard Maclean and Vice President Dave Pandullo will join the board. Founded in 2001, Agreement Express' technology allows financial services firms to deliver a consistent onboarding experience for clients across product offerings and channels. It also provides for deep analytics. Led by CEO Mike Gardner, the company will use the funds raised to fuel growth though expanded sales and marketing, product innovation and new hires.

Resverlogix secures $38 mln loan from Third Eye-led group

Calgary biotechnology company Resverlogix Corp (TSX: RVX) has received a commitment letter for a senior secured loan of about $38 million (US$30 million). The loan's provider is a syndicate led by Canadian alternative lending firm Third Eye Capital. Resverlogix said it also raised about $3.2 million in equity financing. The proceeds will support the company as it advances the Phase 3 clinical trial of its lead epigenetic therapeutic candidate. Resverlogix in December closed an $87 million private placement deal with China’s Shenzhen Hepalink Pharmaceutical Co Ltd.

Maple Leaf Foods leads Series A funding of Entomo Farms

Entomo Farms, a Norwood, Ontario-based operator of a human-grade edible insect farm, has raised an undisclosed Series A financing. The investor was Canadian protein consumer packaged goods company Maple Leaf Foods Inc, which gained a minority stake. Founded in 2014 by Jarrod, Darren and Ryan Goldin, Entomo provides cricket and mealworm powders and whole roasted insects to global food producers looking for an alternative to traditional meat protein. The partnership with Maple Leaf will help Entomo meet its "aspiration to become the largest insect protein supplier in the world," Maple Leaf President and CEO Michael McCain said.

Evolution helps Zoom.ai top up seed round to $5.2 mln

Zoom.ai Inc, a Toronto-based workplace automation solutions startup, has raised an additional $3.1 million for its seed-stage financing, bringing the round's total to $5.2 million. Evolution Equity Partners, a U.S. venture capital firm, led the second tranche. As a result, Evolution's Dennis Smith will join the board. Existing investors Betaworks, BDC Capital, Good News Ventures, Two Small Fish Ventures and North Spring Capital also participated. Led by CEO Roy Pereira, who founded Zoom.ai in 2016, the company will use the second tranche's proceeds for product development and new hires to help meet increased U.S. and European demand.

iNovia brings on former Google, Blackberry execs as GPs

Canadian venture capital firm iNovia Capital has hired Patrick Pichette and Dennis Kavelman as general partners. Among the new GPs' former financial and operational roles, Pichette served as senior vice president and CFO at Google LLC, while Kavelman served as CFO and COO at Blackberry Ltd. Additionally, Montréal-based iNovia said it is expanding into Europe by opening an office in London, where Pichette will be based. Kavelman will operate from the firm's Toronto-Waterloo office. INovia said it is also adding team members to its San Francisco location. Finally, iNovia said it plans to expand its market strategy to include growth equity investing.

Veerum nabs $3.9 mln in Brick & Mortar-led seed round

Veerum has raised $3.9 million in a seed-stage financing. The round was led by U.S. venture capital firm Brick & Mortar Ventures. It was joined by Blackhorn Ventures, Creative Ventures and several unidentified strategic investors in Alberta. Founded in 2014 by CEO Steve Fisher, COO Scott Benesh and Product and Strategy Manager Amit Varma, Calgary-based Veerum develops digital technologies to help manage capital projects. It plans to use the funds raised to expand into the United States and adapt solutions tested in the energy industry to other, large-scale industrial projects, such as facility construction and mining.

Serruya co-leads $6 mln Series B round of Plus Products

Plus Products, a U.S. branded cannabis products maker, has raised US$6 million in a Series B financing. The round was led by Serruya Private Equity, which invests on behalf of Canada's Serruya family, and Navy Capital Green Fund, a U.S. cannabis investor. Founded in 2015, Plus Products manufactures cannabis-infused edibles from a 12,000 square-foot facility in Adelanto, California. The company will use the funds raised for rapid production capacity expansion, factory automation, working capital, and new product development.

Underwear brand BN3TH wins funding from Seaspan chair

Vancouver-based underwear brand BN3TH Apparel has secured an undisclosed investment from Kyle Washington, executive chairman of Seaspan Marine Corp (NYSE: SSW), a Canadian marine transportation business. Founded as MyPakage in 2010 by Dustin Bigney and Dez Price, BN3TH designs and makes men's underwear and related apparel and accessory items sold online and via retailers in North America, Europe, South East Asia and Australasia. It said the partnership with Washington will support its global growth plans. BN3TH also announced the appointment of Ken Barker, formerly an Adidas AG executive, as CEO.

Brightspark to tap more investors via Richardson GMP deal

Brightspark has struck a deal with Canadian wealth manager Richardson GMP Ltd to give more domestic accredited investors an opportunity to participate in the venture capital asset class. Brightspark, a Canadian early-stage venture capital firm, operates a software platform that allows thousands of high-net-worth individuals to select technology investments online. As a result of the deal, Toronto-based Richardson GMP is the first wealth management firm to provide its clients with access to the platform. Brightspark, profiled by PE Hub Canada in February, aims to extend its strategy through similar agreements with other financial services firms.