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CBGF, BGF team up in $15 mln investment in Appnovation

Vancouver-based digital consultancy Appnovation has secured a $15 million minority investment from Canadian Business Growth Fund (CBGF) and U.K.-based BGF.

Founded in 2007 by CEO Arnold Leung, Appnovation provides a range of digital solutions and support services to businesses, government agencies, higher education institutions and non-profit organizations. It has 14 offices in North America, Europe and Hong Kong.

The company plans to use the financing’s proceeds to strengthen its balance sheet and scale internationally.

The Appnovation deal marks the first partnership of CBGF and BGF. CBGF, which launched in 2018 with a $545 million evergreen fund backed by 13 Canadian financial institutions, was patterned after the British investor.

Photo: Arnold Leung, founder and CEO of Appnovation.


Appnovation Receives C$15 Million in Equity Financing

Appnovation to drive international growth and expansion in partnership with the Canadian Business Growth Fund and UK-based BGF

VANCOUVER, Aug. 13, 2019 /CNW/ – Appnovation announced today it has received C$15 million in equity financing from a joint partnership between the Canadian Business Growth Fund (CBGF) and the UK’s BGF. The investment will allow Appnovation to accelerate its international growth and expansion strategy, spurring jobs and economic growth in Canada, the UK and beyond.

Appnovation is a full-service digital consultancy, focused on delivering meaningful business outcomes that drive innovation, growth and ultimately value for its clients. Through digital strategy and a deep industry focus across a variety of verticals (including some of the largest financial services and pharmaceutical companies in the world), Appnovation’s expertise with user-centric, design-led experiences and open technology platforms, helps brands to better engage their customers.

With Canadian offices in Vancouver, Quebec and New Brunswick, and a total of 14 offices across the Americas, Europe and Asia-Pacific, the investment will provide Appnovation with growth capital and the ability to strengthen the company’s balance sheet as it scales up internationally.

“We’re thrilled to have the support of CBGF and BGF as long-term minority investors that share our vision for thinking big and planning for ambitious growth,” says Arnold Leung, Founder and CEO of Appnovation. “That partnership and our recent rebrand launch will allow us to quickly scale both our network and presence throughout the UK and globally.”

Both the CBGF and BGF were created by financial institutions in their respective countries to address the significant growth capital gap faced by mid-market companies. By providing patient, minority capital through an evergreen fund structure and adding value through strategic counsel, both organizations play a critical role in ensuring high potential businesses in their markets can access the growth capital and relationships needed to reach their full potential.

“Appnovation is building an impressive business by executing a differentiated international growth strategy, and we are excited to partner with their leadership team as they evolve into a leading global digital consultancy,” says George Rossolatos, CEO, Canadian Business Growth Fund. “The opportunity for both the CBGF and BGF to further our independent mandates together by driving job creation in each of our respective markets with this joint investment in Appnovation is very exciting.”

Both Appnovation and BGF have significant operations in Reading, UK, which will allow for on-the-ground support and close collaboration between the two organizations.

“This first co-investment marks the deepening of the relationship between BGF and CBGF, backing the growth ambitions of Appnovation both in the UK and Canada,” says Stephen Welton, CEO of BGF. “We have been delighted to support CBGF since its inception and are proud to have seen the BGF model effectively deployed on an international level. The relationships we have will help to build opportunities and networks for our portfolio and the CBGF’s. We’re very keen to see the BGF model adopted in other countries, creating a positive and pragmatic network for growth businesses across the globe. Increasingly, entrepreneurs and high growth companies need effective strategies to expand internationally. This investment highlights how long-term patient capital can really accelerate that.”

Appnovation has been recognized with multiple awards for excellence and achievement, including receiving a 2019 Deloitte Technology Fast 500 award, and a 2018 Canadian Business Growth 500 Fastest Growing Companies award, among others.

About Appnovation
Appnovation is a global full-service digital consultancy that seamlessly integrates strategy, user experience, development, deployment, training and support, allowing clients to continuously innovate their digital services and touchpoints. Headquartered in Vancouver, Canada, the company has 350 professionals working out of 14 offices across six countries including Canada, the US, the UK, Belgium, the Netherlands and Hong Kong. Appnovation. Inspiring Possibility.

About the Canadian Business Growth Fund

Launched in 2018, the Canadian Business Growth Fund (CBGF) provides long-term, patient, minority capital to ambitious entrepreneurs to fund growth and expansion of mid-market businesses in Canada with investments between $3 and $20 million.
An evergreen investment fund with capital commitments of $545 million from Canadian financial institutions, CBGF is committed to long-term partnerships with the companies it invests in.
As part of its mission to drive growth, CBGF connects its partner businesses to its broad network of experienced business leaders, sector experts and international relationships to help them achieve their full potential.
Social media: @CBGFinvestments
About BGF

BGF was set up in 2011 and has invested more than £2bn in over 285 companies, making it the most active investor in the UK and globally by number of transactions.
BGF has £2.5bn to invest in UK SMEs and in Ireland, and an additional €250m to support Irish businesses. In 2018, Canada launched its equivalent – the Canadian Business Growth Fund – based on BGF’s funding model, and Australia is now actively exploring the approach as well.
BGF is a minority, non-controlling equity partner with a patient outlook on investments, based on shared long-term goals with the management teams it backs.
Social media: @BGFinvestments

For further information: Aby Bueno, Broad Reach Communications,, 416-858-3135