Private Equity
IS5 Communications Inc, a Toronto-based provider of integrated services and solutions for industrial Ethernet products, has raised an undisclosed financing. The round was led by Phoenix Contact Innovation Ventures, the venture investment arm of Phoenix Contact Group, a German maker of components and systems for electrical connection and industrial automation technology. The round's proceeds will help further develop and commercialize iS5Com's RAPTOR platform, which allows users to securely connect and manage their mission-critical networks. The company was founded in 2012 by CEO Clive Dias.
3 min read · 21 March 2018
Profound Medical Corp (TSX-V: PRN), a Toronto-based medical device company focused on treatments for prostate cancer and other diseases, has raised $34.5 million in the close of a bought deal financing. Canadian life sciences venture capital firm Genesys Capital, Profound's founding investor, confirmed its participation in the offering with PE Hub Canada. Profound, which went public in 2015, said it will use the proceeds to advance clinical trials and commercialization of its TULSA-PRO and Sonavelle systems, and support R&D and acquisitions. Led by CEO Arun Menawat, Profound is also a portfolio company of BDC Capital's Healthcare Fund.
3 min read · 21 March 2018
Vision Critical has acquired certain assets of Aida Software Corp, a Vancouver-based startup that specializes in applying artificial intelligence to customer experience and support applications. No financial terms were released. Vision Critical, a Vancouver-based provider of customer intelligence software, said the buy will accelerate development and integration of machine learning and AI-related applications for its Sparq 3 platform. Aida's team, including Founder and CEO Jenny Yang, will join Vision Critical as a result of the deal. Vision Critical, which last year bought Pressly, is backed by Georgian Partners, OMERS Ventures, Telus Ventures, W Capital Partners and others.
3 min read · 21 March 2018
Finhaven Technology Inc, a Vancouver blockchain-powered investment banking platform, has raised $1.3 million (US$1 million) in seed-stage financing. Medici Investment, a South Korean venture capital and private equity firm, was the investor. Finhaven also formally announced the launch of an equity and debt issuance platform utilizing the Ethereum blockchain for the creation of tokenized securities. It uses coding and smart contracts to ensure the legal creation, sale and resale of these securities. Finhaven earlier in 2018 struck a deal with TIMIA Capital Corp to create a TIMIA cryptocurrency-based financing platform.
4 min read · 20 March 2018
CareWorx, an Ottawa-based managed service provider, has raised $17 million in financing. The source was Kayne Partners, the private equity affiliate of U.S. alternative investment firm Kayne Anderson Capital Advisors. As a result, Kayne Managing Director Leon Chen has joined the board. Founded in 2006 by CEO Mark Scott, CareWorx provides a suite of managed services for mid-market and senior care businesses. The company will use the funds raised to accelerate growth, expand existing services and security offerings, and undertake acquisitions. CareWorx's other backers include Wellington Financial, now CIBC Innovation Banking, and EPIC Capital.
4 min read · 20 March 2018
Green Tank Technologies, a Toronto-based maker of vaporization hardware for the cannabis industry, has secured $4.3 million in a seed-stage financing. The round was led by Green Acre Capital, a Canadian cannabis investment firm, and Casa Verde Capital, the venture capital firm of U.S. rapper Snoop Dogg. Alan Gertner and Lorne Gertner, founders of Tokyo Smoke, now Hiku Brands, also invested. The funds raised will be used for Green Tank’s product development, market expansion and the growth of WeCannect, a cannabis-focused discovery and networking platform. Green Tank was founded in 2016 by Corey Koffler and Dustin Koffler.
4 min read · 20 March 2018
Canadian automotive parts supplier Magna International Inc said this week it will invest US$200 million in Lyft Inc and work with the U.S. ride-hailing company to manufacture self-driving cars, Reuters reported. The news comes three months after San Francisco-based Lyft made its international debut in Toronto, taking on much bigger rival Uber Technologies Inc, which has been operating in Canada for over five years. Lyft has previously secured investments from Ontario Teachers’ Pension Plan and Public Sector Pension Investment Board (PSP Investments).
1 min read · 16 March 2018
Secure Exchanges, a Drummondville, Québec-based e-mail security platform, has closed its first round of financing. No financial terms were disclosed. The deal was led by Patrick d’Astous on behalf of members of Anges Québec. Founded in 2013 by Cédric Boivin, the startup's CEO, and Hughes Boivin, Secure Exchanges' technology ensures the privacy and security of an e-mail without reliance on a third-party application. The funds raised will be used by the company to complete proof of concept, enhance the solution, and commercialize it for mid-sized and large businesses in the insurance, legal and accounting industries.
2 min read · 15 March 2018
Merchant Advance Capital, a Vancouver-based online small business finance firm, has closed a $30 million delayed draw term loan facility. The source of the funding was Comvest Credit Partners, the credit affiliate of Comvest Partners, a U.S. private equity and debt firm. The loan facility will be used by Merchant to refinance existing debt and for growth capital. Founded in 2010 by President and CEO David Gens, Merchant utilizes technology and data science to reduce risk and offer lower fees and flexible repayment schedules to small and medium-sized companies in Canada.
3 min read · 15 March 2018
Hootsuite has secured about $65 million (US$50 million) in growth funding via a credit financing agreement with CIBC Innovation Banking. Hootsuite, a Vancouver-based social media management platform, said the additional capital will help the company to continue to expand in the Asia-Pacific region, Europe and Latin America, and enhance its offering for such key industries as financial services, government and healthcare. Founded in 2008 by CEO Ryan Holmes, Hootsuite reports having more than 16 million customers, including most of the Fortune 1000. CIBC Innovation Banking launched in January with the bank's buy of the assets of Canadian specialty finance firm Wellington Financial.
3 min read · 15 March 2018
