Canadian life sciences venture capital firm Lumira Capital has closed the $10 million capital commitment made to its latest partnership, Lumira Capital II, by the federal Venture Capital Action Plan (VCAP). In September, the $400 million VCAP awarded $50 million to four “high performing” Canadian funds, including the Lumira fund. The Toronto-based Lumira, which invests in North American companies in biotherapeutics, medical technology and health and wellness sectors, is also backed by Business Development Bank of Canada, Teralys Capital, Fonds de solidarité FTQ, Northleaf Capital Partners, Fondaction CSN and Merck & Co.
Lumira Capital Closes $10 Million Venture Capital Action Plan Investment
TORONTO, Nov. 12, 2013 /CNW/ – Lumira Capital announced today that it has closed on a new $10 million investment commitment for Lumira Capital II. The commitment comes from the Government of Canada via the Venture Capital Action Plan (VCAP) initiative. This investment is the first to close of four recently announced commitments under the VCAP to high-performing venture capital funds. Lumira Capital II invests in North American based, best-in-class, innovation centric companies in the biotherapeutics, medical technology and health and wellness sectors. Other investors in the fund include the Business Development Bank of Canada (BDC), Teralys Capital, Fonds de solidarité FTQ, Northleaf Capital Partners, Fondaction and Merck & Co.
Commenting on the investment, Peter van der Velden, managing general partner of Lumira Capital, noted: “We are really excited to be partnering with the Government of Canada. In this environment it is critical for a life sciences fund to achieve sufficient scale of commitments to allow it to invest the substantial capital required to build successful companies in the sector. The VCAP commitment, along with the earlier commitments of our other limited partners, is really fundamental in allowing our fund to get to that optimal size. We applaud Minister Flaherty and his team for their vision and for the delivery of this much-needed capital to the venture capital ecosystem.”
The investment of $50 million in four high-performing venture capital funds is the first phase in implementing the VCAP, a comprehensive strategy by the Government of Canada to promote a vibrant, sustainable venture capital sector.
“It is very rewarding for the federal government to be able to provide the necessary resources to help support Canada’s venture capital industry. The VCAP recognizes that Canada’s innovative firms represent superior return opportunities, and that private-sector led investments and decision-making is central to long-term success,” said the Honourable Jim Flaherty, Minister of Finance. “Today’s investment in Lumina Capital II will ensure that Canada’s high-potential businesses have the resources they need to grow and create jobs, which in turn will help to strengthen Canada’s long-term economic competitive advantage in the knowledge-based economy.”
“We are delighted to see VCAP funds begin to flow. This investment, as well as the many others to come, will undeniably help strengthen venture capital investment in Canada,” stated Jérôme Nycz, Executive Vice President, Subordinate Financing and Venture Capital at the Business Development Bank of Canada (BDC). “The BDC has long recognized the importance of a strong, vibrant venture capital industry in helping Canadian entrepreneurs unleash their full potential. Today’s announcement supports our mission of building great Canadian technology companies by doing all that we can to inject capital – financial and intellectual – into ventures with the promise of great growth.” The BDC is supporting the Government of Canada as it implements the VCAP, by providing independent expertise and advice as well as assisting in the deployment of VCAP investments.
About Lumira Capital
Lumira Capital is a leading North American healthcare and life sciences venture capital firm. Currently managing over $350 million, Lumira Capital is an active investor that works closely with entrepreneurs developing transformative therapeutics and medical technology innovations. Some of the investments in the firm’s most recent fund include Pharmasset (acquired by Gilead Sciences), Ception Therapeutics (acquired by Cephalon), Resonant Medical (acquired by Elekta), Morphotek (acquired by Eisai), and Corus Pharma (acquired by Gilead Sciences), as well as public companies such as MAKO Surgical (recently acquired by Stryker Corp.), DepoMed and Ista Pharmaceuticals. Lumira Capital has partners in Toronto, Montréal and Boston. Visit www.lumiracapital.com for more information.
About BDC Venture Capital
With more than $1 billion under management and more than 25 years of industry experience, BDC Venture Capital is an investor of choice focusing on IT, health and energy/cleantech companies, as well as venture funds, with high growth potential. From seed through expansion to exit, their mandate is to help build outstanding Canadian companies, while working to create a sound financial ecosystem for Canadian technology ventures. Find out more at www.bdc.ca/vc or on Twitter @BDC_VC.
SOURCE Lumira Capital
For further information:
Dr. Benjamin Rovinski
Manager, Public Relations
BDC Venture Capital
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