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The fund exceeds original cap target by over $50 million; brings on $15.5 million in BC-based capital
TORONTO, Sept. 13, 2017 /CNW/ - ScaleUP Ventures Inc. today announced the third and final close of its first fund, over-achieving on the original target of $50 million, bringing the fund's total capital commitment to over $100 million. The final closing brings fresh capital out of BC, including funds from the Province of British Columbia (via the BC Tech Fund, managed by Kensington Capital Partners) and several west coast LPs. ScaleUP has also opened a Vancouver office.
"We are excited about the opportunities presented by the ScaleUP fund, with its unique investor base and strong entrepreneurial team," said Gerri Sinclair, Managing Director of Kensington Capital, the manager of the BC Tech Fund, "The BC Tech Fund is proud to be investing with ScaleUP as it extends its platform across Canada with the launch of its new Vancouver office."
ScaleUP was launched in May 2016 with a target to raise a $50 million early-stage technology fund to work with corporate Canada and help startup technology companies achieve global scale. The fund over-achieved a first close in August 2016 of $38 million from over a dozen of Canada's largest corporations. The $38 million was in addition to the original $25 million commitment from the Province of Ontario.
"ScaleUP's presence in Vancouver will be a tremendous asset to British Columbia's rapidly expanding tech sector," said Bruce Ralston, Minister of Jobs, Trade and Technology. "The BC Tech Fund is doing what it was designed to do and that is to expand the availability of local venture capital in B.C. so promising companies to have sufficient access to capital in order to realize their growth potential in the province."
ScaleUP Ventures brings together two key components: a venture capital fund and a Leadership Council comprised of some of Canada's most successful business leaders, startup entrepreneurs, and technology investors. Leadership Council members (including RBC, TD, Scotiabank, Rogers, Bell, Telus, Magna and Weston) provide strategic guidance and mentorship to the fund's high-potential companies, and give corporate Canada more exposure to leading-edge innovation.
"The ScaleUP model has been very appealing to entrepreneurs. Along with seeing great deal flow we are increasingly the investor of choice for entrepreneurs. The opportunity is large, and with this fund we plan to make 20-30 investments and have strong reserves to invest further in our businesses reaching global scale." said Kent Thexton, General Partner, ScaleUP Ventures.
On July 1st 2017, ScaleUP brought on Vancouver-based serial entrepreneur Derek Spratt as Partner and Managing Director to expand the fund's activity across Canada. As BC continues to bolster its startup ecosystem, having a partner on the ground will enable ScaleUP to engage directly with the best-in-class startups and build a strong west coast investment pipeline.
To date, ScaleUP has reviewed over 500 companies and has made ten investments; seven of which are based in Ontario. Investees include Fusebill, an Ottawa?based company that develops software to manage subscription billings; FundThrough, a Toronto?based small business lender; Naborly, a Toronto-based company using machine learning for tenant screening; and Neuranet, a Toronto-based AdTech business with its market-leading Flexitive platform.
Following ScaleUP's $1.7 million Series-A lead investment in Toronto-based Crowdcare Inc., the company landed an expanded deployment with Rogers, one of ScaleUP's active corporate LP members. This successful case deployment has since led to secured contracts with emerging carriers internationally, including BT (British Telecom) and Sprint.
"It's terrific to see the ScaleUP model working, and how leading Canadian corporates have embraced the need for innovation. Engagement with startups has never been better and bodes well for scaling companies in Canada", says Nadir Mohamed, Chair of ScaleUP Ventures.
- A recent PwC MoneyTree report identified Ontario and British Columbia as front runners of Canada's funding deployments in Q2 of 2017 (30 deals at $123million and 12 deals $57 million respectively). The report also placed Toronto as the top market of Q2 2017 by deals (24 deals totalling $107million)
- According to a recent report by the Canadian Venture Capital and Private Equity Association (CVCA), Venture Capital activity in the first half of 2017 is indicating numbers will meet or exceed 2016's extraordinary performance ($1.6B was invested over 260 deals by the close of Q2)
- Mentorship is provided to the fund's startuss by the ScaleUP Leadership Council. Led by former Rogers Communications CEO Nadir Mohamed, the council includes senior corporate Canadian executives such as Dave McKay (CEO, RBC), Joe Natale (CEO, Rogers), and Don Walker (CEO, Magna)
About ScaleUP Ventures:
ScaleUP Ventures is Canada's premier early-stage venture fund designed to assist the nation's most promising startups by providing "Capital + Connections"; a unique combination of funding and strong connections to corporate Canada via seasoned executives, entrepreneurs, and investors. The fund targets Seed and Series-A sized investments in high growth technology companies that have begun to show traction in large, expanding markets. ScaleUP's unique model helps companies scale more rapidly toward global success. For more information please visit www.suv.vc.
SOURCE ScaleUP Ventures
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