Private Equity
A group of Canadian banks and insurance companies have launched the Canadian Business Growth Fund, intended to make long-term minority investments in small and medium-sized companies looking to grow or scale operations. The fund is expected to raise more than $500 million initially, with the possibility for future commitments of up to $1 billion. Initial participants include BMO, CIBC, RBC, Scotiabank, TD, Manulife, Sun Life, Great-West Life, National Bank, HSBC Canada, ATB Financial, Laurentian Bank and Canadian Western Bank. Operating as an independently managed entity, the fund will also offer portfolio companies mentorship and access to talent pools.
3 min read · 09 March 2017
McRock Capital believes access to funding through the Venture Capital Action Plan (VCAP) played a major role in its recent success as a Canadian venture capital firm. In light of this, the firm decided to conduct an in-depth analysis of VCAP's broader impact. Using its “Canadian Venture Capital Innovation Tree”, McRock shows how VCAP influenced the Canadian VC industry as a whole and how all of its beneficiaries interact together as one functional ecosystem. McRock believes this is a key measure of VCAP's benefits to Canada's innovation system and economy, which far outweigh the program's costs.
6 min read · 08 March 2017
Canadian financial technology startup Dream Payments has raised $10 million in a Series A financing. FairVentures led the round and was joined by existing investors Connecticut Innovations and Real Ventures, as well as angel investors. Founded in 2014, Toronto-based Dream operates a payments cloud that facilitates commerce and payments across mobile devices and the Internet of Things. CEO Brent Ho-Young said the funds raised will help Dream expand into the U.S. market at "a perfect time" to serve "businesses that are struggling to support emerging payment technologies." The round's proceeds will also back the company's continued growth in Canada.
4 min read · 08 March 2017
Authentic Web Inc has raised a financing led by MaRS Investment Accelerator Fund (IAF) and joined by a group of angel investors. The round's value was not disclosed. Launched in 2013, Toronto-based Authentic Web provides SaaS technology to help enterprises control and drive brand domain identity performance improvements and innovation. It plans to use the funds raised to build out its technology and expand the customer base. Led by its founder, CEO Peter Lamantia, Authentic Web also has operations in the United Kingdom. MaRS IAF invests in early-stage companies in Ontario.
3 min read · 08 March 2017
Tokyo Smoke has partnered with Chuck Rifici and Ian Rapsey of Nesta Holding Co, a Canadian cannabis private equity firm, to form Nesta Brand Co, a brand house that will license cannabis brands for distribution. Led by Rapsey as CEO, Nesta Brand Co will build global partnerships to license existing products on sale in Europe, America and elsewhere for distribution in the Canadian market. Tokyo Smoke, a Toronto cannabis lifestyle brand and developer of retail spaces, raised a $3 million Series A financing in January. The round's backers included Globalive Capital.
4 min read · 07 March 2017
Mill Street & Co has acquired a stake in Tuque Inc, a Canadian personal and commercial insurance technology startup. No financial terms were disclosed. Founded last year by President Shaun Bagchi, Toronto-based Tuque plans to introduce "innovative insurance products" to the domestic market following the company's official launch in the first quarter of 2017. Mill Street is a Canadian private investment firm.
2 min read · 06 March 2017
Montréal virtual health and wellness solution Dialogue has raised $4 million in seed-stage financing. The announcement confirms news previously shared by one of the startup’s Canadian investors, Diagram, which launched a $25 million debut fund in January. Diagram led the round and was joined by BDC Capital and Hacking Health Accelerator, among others. Founded last year, Dialogue offers employers a virtual platform that provides a range of employee-focused healthcare services and benefits. Led by Co-Founder and CEO Cherif Habib, the company will use the funds raised to build on its Québec launch and continue expansion in Ontario.
3 min read · 06 March 2017
Lisa Melchior, a former managing director of OMERS Private Equity, has launched a new investment firm that targets a key capital gap faced by Canada’s late-stage tech companies. Melchior, a 17-year OMERS veteran, founded VERTU Capital in November. She told PE Hub Canada the decision was inspired by her belief that many quality Canadian tech companies lack sufficient funding to leverage early commercial success. “I spent over 20 years on Bay Street in an institutional environment, much of it leading OMERS North American technology group,” Melchior said. “When I left, I felt I wanted to work with entrepreneurial teams and tech companies seeking breakout growth and needing a partner to get there.”
3 min read · 06 March 2017
Plum.io, a Waterloo software startup led by CEO Caitlin MacGregor, has secured the final tranche of a $400,000 investment by BDC Capital. The money came from a fund set up by BDC Capital last November to support women founders in Canada. Launched in 2012, Plum.io has developed an SaaS platform that helps employers optimize teams and make pre-employment assessments. The company said the funding has helped it grow and attract new hires, such as former Blackberry executive Nigel Vanderlinden, who became Plum.io's CRO in January.
3 min read · 03 March 2017
Opsens Inc commenced trading this week on the Toronto Stock Exchange under the symbol "OPS". The company's graduation from the TSX Venture Exchange was preceded by a $14.9 million equity financing in December. Founded in 2003, Québec City-based Opsens is a developer of technology that is mainly focused on the measure of fractional flow reserve in interventional cardiology. It is a portfolio company of Canadian life sciences venture capital firm Lumira Capital and other investors.
3 min read · 02 March 2017
