Private Equity
U.S. business software developer Salesforce.com Inc will pump US$2 billion ($2.5 billion) into its Canadian business over the next five years, it said this week, the latest major U.S. technology investment across the border since early 2017, Reuters reported. Toronto is a hub for artificial intelligence research and Canadian Prime Minister Justin Trudeau is visiting California this week in part to speak with U.S. technology chief executives. Canadian leaders have promoted their country’s immigration policies as an alternative to the U.S. administration’s ban on travellers from some Muslim countries and restrictions on work permits for some foreigners. “You want the best minds wherever they are,” said Mike McDerment, chief executive of FreshBooks, a Toronto company that develops accounting software.
2 min read · 09 February 2018
Cognixion, a neurotechnology artificial-intelligence startup based in Toronto and Santa Barbara, California, has secured about $1.2 million (US$1 million) in a seed-stage financing. The round was led by Tom Washing, founding partner of Sequel Venture Partners, and joined by nine angel investors. The funds raised will help Cognixion develop a commercially viable biosignal recognition system that is intended to help non-verbal people communicate using a brain computer interface and AI. Formerly known as Smartstones, Cognixion was founded in 2014 by CEO Andreas Forsland.
3 min read · 08 February 2018
TribalScale, a creator of digital product strategy, design, and development, has launched TribalScale Venture Studios, a $100 million, five-year program that will connect entrepreneurs with Fortune 500 companies to launch industry-specific startups. The program will focus on four sectors: financial services, automotive, media and travel and hospitality. TribalScale has offices in Toronto, New York City, San Francisco, Dubai and Irvine, California.
4 min read · 08 February 2018
Taxelco Inc, a Montréal transportation company founded in 2015 by XPND Capital, has raised an additional $17 million in financing. XPND invested alongside Caisse de dépôt et placement du Québec, Fonds de solidarité FTQ and Fondaction CSN. The funds raised will allow Taxelco brand Téo Taxi, an electric taxi service, to advance technology development, buy 200 vehicles, hire about 600 drivers as well as other personnel, set up an operations centre, and grow its recharging station network. Taxelco, which also owns Taxi Diamond, acquired in 2016, and Taxi Hochelaga, said it plans to export its business model beyond Montréal starting in 2019.
4 min read · 08 February 2018
Tilray, a Canadian medical cannabis startup, has raised $60 million in a Series A financing. The company, owned and funded since its founding in 2014 by U.S. cannabis private equity firm Privateer Holdings, was backed in the Series A for the first time by unidentified institutional investors. Tilray researches, cultivates, processes and distributes medical cannabis and cannabinoids. Headquartered in Nanaimo, British Columbia and led by CEO Brendan Kennedy, the company will use the funds raised to increase production capacity in North America and Europe, and scale distribution of products to more patients and pharmacies around the globe.
4 min read · 08 February 2018
White Star Capital has promoted Lylan Masterman to general partner. Masterman, who joined White Star as a principal in 2014, will lead the firm's office in New York City and drive investments in the area. He will also continue to build White Star's networks in Silicon Valley and Asia on behalf of portfolio companies. Masterman's technology executive and venture capital background includes his on-going role as a fellow at Kauffman Fellows. Operating from London, New York, Montréal, Paris and Tokyo, White Star is an investor in early-stage technology companies.
3 min read · 07 February 2018
MineSense Technologies Ltd, a provider of sensor-based ore data and sorting solutions for large-scale mines, has secured an investment of about $5 million (US$4 million) from Japanese conglomerate Mitsubishi Corp. The deal, which follows MineSense's $19 million round last year, will accelerate the company's digital offering and support a strategy to "expand into key mining regions worldwide," CEO Jeff More said. Mitsubishi's investment took the form of a convertible bond. Founded in 2008, Vancouver-based MineSense's other investors include Aurus Ventures, Caterpillar Ventures, Chrysalix Venture Capital, Cycle Capital, EDC and Prelude Ventures.
2 min read · 07 February 2018
Enerkem, a company that turns trash into clean fuels and green chemicals, this week accounted for the biggest cleantech deal in the history of Canada’s venture market. The Montréal company on Tuesday said it raised $280 million in new financing. The round was backed by U.S. investment manager BlackRock and Chinese bioindustrial conglomerate Sinobioway, both new investors, as well as Enerkem’s longstanding investors. The Enerkem deal is the all-time largest raised by a domestic VC-backed cleantech company, Thomson Reuters data show. It beats Enerkem’s own record, set in 2013, when it secured $87 million in two tranches.
3 min read · 07 February 2018
Halifax anti-infective pharmaceuticals developer Appili Therapeutics Inc has raised more than $4.3 million in a private placement financing, bringing its total funding since a 2016 seed round to more than $11.8 million. Both new and existing investors participated in the latest deal, including Innovacorp. In addition, a repayable contribution of $500,000 was provided by a program of the Atlantic Canada Opportunities Agency. The proceeds will be used for operations and continued growth. Specifically, they will help expand Appili's pipeline of anti-infectives with more in-licensed assets. Founded in 2015, Appili is led by CEO Kevin Sullivan.
3 min read · 07 February 2018
Edmonton-based biopharmaceutical company OncoQuest Inc has raised about $7.5 million (US$6.03 million) in a private placement deal. It was led by an unidentified South Korean institutional fund. OncoQuest said that its existing investor Hepalink USA also converted its preferred shares and accrued 5 percent preferred-share dividends into common shares. OncoQuest is focused on developing immunotherapeutic products for treating cancer. Founded in 2015 and led by CEO Madi Madiyalakan, the company is a subsidiary of Quest PharmaTech Inc (TSX-V: QPT).
3 min read · 06 February 2018
