Private Equity
The Canadian government has announced the launch of Northleaf Venture Catalyst Fund, the first market-based fund-of-funds backed by Ottawa's $400 million Venture Capital Action Plan in partnership with the Ontario government. The fund, which will be managed by Toronto-based Northleaf Capital Partners, has raised $217.5 million in commitments in its initial closing, two-thirds of which, or $145 million, came from corporate and institutional investors, including BDC Capital, Canada Pension Plan Investment Board, OpenText Corp, and six of Canada's leading banks. Northleaf Venture Catalyst Fund, which is targeted to raise $300 million in total, will make commitments primarily to Canadian venture capital funds, and direct investments in Canadian companies. The federal and Ontario governments have agreed to make a combined commitment of $1 for every $2 committed by private investors to the fund, up to a maximum of $50 million each. A second closing is anticipated later this year.
4 min read · 21 January 2014
BuildDirect, a Vancouver-based online home improvement products supplier, has secured $30 million in Series B financing. The round was led by U.S. venture capital firm Mohr Davidow Ventures and supported by Canadian investors, including existing investor BDC Venture Capital. Funds will be used to fuel company growth in the US$492 billion building product marketplace, continued evolution of BuildDirect's proprietary technology platform, expansion of its product offerings, and an increase in its employment base. Katherine Barr, general partner at Mohr Davidow and co-chair of the C100, will join the company's board of directors. Founded in 1999, BuildDirect has been venture-backed since 2006. Its other backers include Difference Capital Financial, GrowthWorks and OMERS Ventures.
4 min read · 21 January 2014
Motion Engine Inc, a manufacturer of motion sensing enabling systems, has received approximately $1 million in seed-stage financing. The round was funded by a consortium of angel investors from Canada, the United States and Asia. Established last year in Montréal, Motion Engine is a member of the MiQro Innovation Collaborative Centre, which promotes growth in the microelectronics industry through the support of leading-edge technologies. The company will use the proceeds of its investment to advance its motion sensing platform technology for mobile and wearable devices.
4 min read · 21 January 2014
Canadian venture capital firm iNovia Capital has promoted two of its principals, Kevin Swan and Karamdeep Nijjar, to partner roles. The firm said these promotions are intended to pave the way for iNovia's next phase of growth, support the growth of deal flow and its Canadian and U.S.-based portfolio companies, which currently total 46, and evaluate over half a dozen potential exits in 2014. With headquarters in Montréal and managed capital totaling $275 million, iNovia is focused on making early-stage investments in digital media, SaaS, e-commerce and connected devices. In Apr. 2013, peHUB Canada interviewed the firm's managing partner Chris Arsenault on deal-making activity and trends in the domestic market.
3 min read · 21 January 2014
AmorChem, an early-stage life sciences fund managed by Canadian venture capital firm GeneChem, has invested in a project focused on the role of the IGF axis in cancer development, invasion and metastasis that is being conducted by McGill University professor Dr. Pnina Brodt in collaboration with the National Research Council of Canada. The investment, which was made in partnership with Québec commercialization and technology transfer hub MSBi Valorisation, is intended to bring the project's novel cancer-treating innovation closer to clinical applications. AmorChem was in Nov. 2013 profiled by peHUB Canada in a feature article about Univalor and new startup opportunities in Québec.
5 min read · 21 January 2014
Venture capital firms ramped up their investments in the United States last year and last quarter, particularly in the red-hot software sector, according to a report from the National Venture Capital Association and consultancy PriceWaterhouseCoopers. For the year, venture firms invested US$29.36 billion in startups, a 7 percent increase over US$27.32 in 2013. For the quarter, they invested US$8.37 billion in startups, 20 percent more than the same time last year and more than any quarter since the end of 2007. Software was the big draw, taking in US$2.88 billion last quarter and US$10.96 billion for the year, more than any year since 2000, according to the report.
1 min read · 17 January 2014
BrandProject LP, a company creation studio and fund that makes early-stage investments in consumer products and technology, has been officially launched. The firm has been backed with over $12 million in commitments from BDC Venture Capital and other investors. With offices in Toronto and New York, BrandProject will focus on seeding and mentoring Internet-enabled consumer products and services startups located in Canada and the U.S. Founded in 2012, BrandProject builds on the record of the consumer-focused Blackpoynt Brand Ventures. Both BrandProject and Blackpoynt were founded by Andrew Black, the former president and CEO of Virgin Mobile Canada.
3 min read · 17 January 2014
The venture capital arm of one of Canada's largest pension funds is raising a second, larger round of funding to invest in Canadian technology startups, its chief executive said on Thursday. OMERS Ventures has already secured some funding from its parent, the Ontario Municipal Employees Retirement System, for the second round and has invested some of it, but is now negotiating for more funding from outside sources, CEO John Ruffolo told Reuters on the sidelines of a technology conference. "It will be a very large fund. It will be larger than our first fund, which was C$200 million (US$183 million)," he said.
2 min read · 17 January 2014
Ross Bricker, former president and CEO of Canadian venture capital firm AVAC, has launched a new investment vehicle called the Optimum Technology Fund LP, peHUB Canada has learned. The Calgary-based Optimum Fund will focus on investing in technology companies in Canada and the U.S. Pacific Northwest with experienced managers, and that are on the cusp of introducing products or services that offer viable incremental improvements over existing solutions in a range of industries. The fund is targeted to raise $15 million in total, primarily from accredited retail investors. Partnering with Bricker in managing the fund is Neil Gledhil, an entrepreneur and investor of 30 years experience, and Patrick Barrington. Both Gledhil and Barrington are also based in Calgary.
2 min read · 16 January 2014
Israeli venture capital funds raised US$526 million in 2013, down 27 percent from 2012, the Israel Venture Capital Research Center (IVC) said on Tuesday in a report issued with consultancy KPMG. Fund raising has slowed since 2011 with less capital being raised by fewer funds, Koby Simana, IVC's chief executive, said in a statement. According to IVC, 30 Israeli VC funds are in the process of raising capital, with a targeted total of over US$2 billion. However, only half are expected to raise capital in 2014 and it will not be more than US$1 billion.
2 min read · 15 January 2014
