BDC Capital anchors Framework Venture Partners

Framework Venture Partners, a new venture capital firm based in Toronto and Vancouver, has held an initial close and with a target of $150 million.

BDC Capital Inc, the venture capital arm of crown corporation, Business Development Bank of Canada (BDC), anchored the firm’s inaugural fund, Framework Venture Partners I, along with other limited partners including Cadillac Fairview, Royal Bank of Canada, and BC Tech Fund, a BC government fund managed by Kensington Capital Partners.

In addition to its lead capital commitments, BDC Capital will also transfer $125 million worth of IT portfolio investments (Cymax, Diply, Elasticpath, Foodee, Klue, Mobify, TouchBistro, Trulioo, Wattpad, Wave Accounting) to be managed by Framework Venture Partners.

Led by General Partners, Peter Misek and Andrew Lugsdin, former members of BDC IT Venture Fund, Framework Venture Partners will invest primarily in Canadian business-to-business software-as-a-service (SaaS) companies with a focus on companies applying machine learning techniques, and companies reimagining the consumption and seamless delivery of financial services on top of software applications.

photo credit: Framework Venture Partners

News Release

New VC Firm, Framework Venture Partners, Launches $150 Million Fund to Fuel Rapidly Scaling Tech Companies in Canada

Co-anchored by BDC Capital, Cadillac Fairview, Royal Bank of Canada, and the BC Tech Fund, the new fund addresses critical shortage of later stage financing in Canada

TORONTO and VANCOUVER, Feb. 5, 2019 /CNW Telbec/ – Framework Venture Partners, a new Canada-focused technology venture capital firm announced the first close of FVP I. With a goal to raise $150M, Framework Venture Partners has secured capital commitments from BDC Capital, Cadillac Fairview, Royal Bank of Canada, and the BC Tech Fund, managed by Kensington Capital. The firm will be led by co-founders and partners, Peter Misek and Andrew Lugsdin, who combined bring more than 35 years of domestic and international VC experience.

The new fund is focused on supporting rapidly scaling tech companies in Canada raising equity to accelerate global growth. Framework combines its unique data-driven investment decision process with a highly collaborative engagement model that leverages its deep technology and startup experience to help world-class entrepreneurs and CEOs in high-growth global market segments scale. This model has already proven successful with investments in several leading Canadian tech startups including Wave Financial, TouchBistro, Wattpad, Elastic Path, and Trulioo.

Framework will invest primarily in Canadian business-to-business software-as-a-service (SaaS) companies with a focus on companies applying machine learning techniques to large industry-specific datasets to deliver new products and services, as well as companies reimagining the consumption and seamless delivery of financial services on top of software applications that are used every day.

“The current venture funding landscape in Canada has been very successful in producing a critical mass of early-stage companies over the last several years,” said Peter Misek, Co-Founder and Partner, Framework Venture Partners. “All of this investment has fueled opportunities in later stage companies looking to raise larger rounds to support continued growth. We founded Framework Venture Partners to tap into this unmet investment need and help fulfill the promise of the Canadian technology industry.”

“We believe there is great opportunity for later stage investment in Canadian technology companies,” said Jérôme Nycz, Executive Vice President, BDC Capital. “The Canadian venture capital industry has come a long way in the past 10 years, and an important part of the strategy we launched almost a decade ago was to build and deploy new, high-performing funds into the Canadian market. We are achieving this goal with our investment in Framework and we look forward to partnering with them to pursue this opportunity and support the venture ecosystem in Canada.”

“We are proud to partner with Framework, an organization focused on furthering Canadian technology and developing made-in-Canada AI solutions,” said Jose Ribau, EVP Digital & Innovation, Cadillac Fairview. “At CF, we encourage a culture of continuous improvement through innovation and believe investments like this contribute to growing Canada’s digital economy.”

“Royal Bank of Canada is a champion of Canadian innovation, and we believe supporting the growth of Canadian firms that develop transformational technologies will help drive the future prosperity and economic success of Canada,” said Mike Dobbins, Chief Strategy & Corporate Development Officer, Royal Bank of Canada. “With its focus on Fintech 2.0, investing in and partnering with FVP l and the companies it funds will also support our ambition of creating solutions that go beyond banking to bring unique value to our clients and help us build relationships with more Canadians.”

As former members of BDC IT Venture Fund, Peter Misek and Andrew Lugsdin launched Framework with an anchor commitment from BDC Capital. Framework will continue to manage a number of BDC Capital’s existing IT investments. Upon final closing, the firm will aim to have $275 million in assets under management.

About Framework Venture Partners
Framework Venture Partners is a Canada-focused technology venture capital firm that combines a unique data-driven investment decision process with a high-touch collaborative engagement model to help world-class entrepreneurs and CEOs in high-growth global market segments scale. Led by co-founders and partners, Peter Misek and Andrew Lugsdin, who combined bring more than 35 years of domestic and international VC experience, Framework Venture Partners invests in Canadian business-to-business SaaS companies with a focus on companies reimagining the consumption and delivery of financial services or are developing embedded artificial intelligence solutions that apply machine learning to large industry specific datasets. For more information, visit www.framework.vc.

SOURCE Framework Venture Partners

For further information: Julie Galla, Framework Venture Partners, media@framework.vc, 604-738-0595

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.