Real Ventures announced that it has completed the first closing of its third venture capital fund at $50 million, with an ultimate target of $100 million. The fund will focus on web, mobile and internet focused investments in Canada and specifically in Quebec.
Montréal, April 12, 2014 – Montreal‐based Real Ventures, Canada’s largest and most active seed venture capital fund manager and driving force behind startup accelerator FounderFuel and downtown tech innovation hub Notman House, announced today the first closing at $50 million of its newest web, mobile & internet focused investment fund. The fund is expected to reach $100 million by the time of its final closing.
The lead investors in the new fund are Québec based Teralys Capital, FIER Partenaires L.P. and the Business Development Bank of Canada for Government of Canada, via its Venture Capital Action Plan (VCAP). Participating alongside are a select number of family offices and individuals, in addition to Real Ventures’ General Partners. This is Real Ventures’ third fund since its creation in 2007. “Real III”, as with previous funds, will be invested in entrepreneur driven companies that are building the Internet experiences of the future or that are using the power of the Internet to transform industries. The vast majority of the funds will be invested in Canadian companies, with a significant portion of this first close to be earmarked for companies based in Quebec. Since 2008 Real Ventures has invested in over 60 startups and was the initial investor in high profile Canadian companies such as Beyond the Rack, Frank & Oak, Cinemagram, OM Signal, Uniiverse and Unbounce.
According to data from Thomson Reuters, Real Ventures was the number one private VC investor in Canada in terms of seed-‐stage investments in 2013. It made 16 investments during the year and exited two portfolio companies, including video streaming platform 5by, which was sold to StumbleUpon in September. This is the 17th sector‐focused fund backed by Teralys Capital since its launch in 2009.
“This new investment is consistent with Teralys Capital’s strategy aimed at building a strong venture capital ecosystem that propels high‐potential innovative companies in Quebec,” says Éric Legault, Managing Partner at Teralys Capital.
“As an investor in their prior fund Real Ventures I, FIER Partenaires, L.P. is pleased to be amongst the investors for their new fund Real Ventures III”, stated Sylvie Pinsonnault, Chairwoman of the Board of FIER Partenaires s.e.c. “Their innovative approach to investing and strong focus on Quebec companies make of this fund not only an attractive investment opportunity but also reinforces support for the venture capital ecosystem in Quebec.”
Real III is receiving a portion of the $50 million earmarked for high performing funds through VCAP, as part of its strategy to stimulate Canada’s venture capital sector.
“In contributing to this investment through Canada’s Venture Capital Action Plan, the Government of Canada recognizes that our innovative firms are important drivers in creating economic growth, high quality jobs and long-‐term prosperity,” said Canada’s Finance Minister Joe Oliver. “We believe that Canada’s entrepreneurs represent superior opportunities for investors, and understand that private‐sector led investments and decision‐making are essential to their long‐term success.”
About Real Ventures
Real Ventures invests in ambitious entrepreneurs that are creating the Internet experiences of the future or embracing the power of the Internet to disrupt existing industries or business models. Investing pre-‐traction, its team and networks support entrepreneurs and propel their companies forward. The best entrepreneurs do their homework on prospective VCs and the best Canadian entrepreneurs want to be backed by Real Ventures. Visit realventures.com for more information.
About Teralys Capital
Teralys Capital is a fund of funds created to finance private venture capital funds focused on investing in life sciences, information technology and cleantech companies. The fund has $700 million in capital commitments from Caisse de dépôt et placement du Québec, the Fonds de solidarité FTQ and Investissement Québec. Teralys Capital is also managing two existing portfolios of venture capital funds with additional assets under management of over $600 million. It is currently the largest fund of funds in Canada. Visit www.teralyscapital.com for more information.
About FIER Partenaires s.e.c.
FIER Partners L.P. supports the creation of sector development funds and pre‐seed and start‐up technology funds, including biotechnology. The limited partnership’s initial capitalization of $180 million is provided by IQ‐FIER, a subsidiary of Investissement Québec, for $90 million, and by three labor sponsored venture capital corporations: the Fonds de solidarité FTQ ($50 million), Capital régional et coopératif Desjardins ($25 million) and Fondaction, the CSN development fund for cooperation and employment ($15 million).