Diagram holds $50M initial close for $60M ClimateTech Fund

Ted Liu

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Diagram Corporation has held an initial closing of its Diagram ClimateTech Fund.

Lunched in January 2023, Diagram ClimateTech Fund has secured nearly $50 million in commitments towards its $60 million target.

Investissement Québec, and Sagard co-anchored the fund with additional commitments from Mavrik, the family office of Mark Pathy, Fondaction, Fonds québécois d’amorçage Teralys financed by CDPQ, individual investors.

The fund will be jointly led by Amélie Foz-Couture and Paul Manias. The fund seeks to build and invest in companies developing capital-efficient digital solutions that accelerate the global transition to a more sustainable future.

The partnership between François Lafortune, CEO of Diagram, and Sagard controls Diagram ClimateTech Fund General Partnership.

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News Release

Diagram Announces a New $60 Million Fund Targeting Innovation in the ClimateTech Industry

MONTREAL, Dec. 1, 2023 /CNW/ – Diagram, a leading venture builder and investor backed by Sagard, a global multi-strategy alternative asset manager, has announced the initial closing of its new ClimateTech Fund, securing nearly C$50M in commitments towards its C$60M target.

The Quebec government, through Investissement Québec, and Sagard have partnered to co-anchor the fund. Other major investors in the fund include Mavrik, the family office of Mark Pathy, Fondaction & Fonds québécois d’amorçage Teralys financed by CDPQ. Several additional individual investors, eager to contribute to the energy transition, have also participated in the fund.

The fund seeks to build and invest in companies developing capital-efficient digital solutions that accelerate the global transition to a more sustainable future. It will leverage Diagram’s unique venture creation model to identify market opportunities, assemble high-caliber founding teams, and mitigate early-stage risks through strategic partnerships. The fund will also invest in promising early stage companies sourced through Diagram and Sagard’s extensive network, with a particular focus on Quebec-based businesses.

“Diagram’s ClimateTech Fund will boost innovation to meet the challenges associated with tackling climate change. Supporting innovative businesses is essential in order to position Quebec at the forefront of these strategic sectors,” stated Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region.

François Lafortune, Co-Founder & CEO of Diagram, expressed his enthusiasm for the new strategy, stating: “The creation of the Diagram ClimateTech Fund to launch and invest in innovative ClimateTech companies represents a significant milestone in our commitment to a sustainable future.”

For Marc-André Binette, Deputy Chief Investment Officer at Fondaction, “investing in the Diagram ClimateTech Fund means contributing to the creation and development of young companies with the potential to become champions of the energy transition, an important dimension in the fight against climate change. This is an innovative model where the synergy between solution ideation, financing and management experience is very high, which should benefit the entire sector by reinforcing best practices and trends.”

“Teralys, as Canada’s largest investor specializing in innovation, is proud to contribute to the creation of the Diagram ClimateTech Fund deploying a unique investment thesis in the Quebec ecosystem aimed at building new innovative companies dedicated to the energy transition” declared Beatrice Couture, Principal at Teralys Capital.

The fund will be jointly led by Amélie Foz-Couture and Paul Manias, who both share a strong commitment to sustainable innovation. Amélie, a long-standing Partner at Diagram, has been leading the firm’s venture creation activities for the past five years. Paul, a seasoned ClimateTech expert and Diagram’s newest Partner, previously co-founded a venture capital fund focused on later-stage decarbonization investments and served for eleven years as Managing Director at OMERS in the infrastructure and private equity groups. Paul is also currently a special advisor to The Co-Operators Group in the area of climate-resilient infrastructure.

“Climate change is the biggest challenge of our generation,” stated Amélie. “Having spent the last five years at Diagram perfecting our approach to launching companies, we’ve consistently held the belief that mission-driven entrepreneurs are instrumental in solving our most significant challenges. I am very excited to apply our unique venture creation model to the ClimateTech industry in partnership with Paul Manias and to collaborate with extraordinary founders to address this generational imperative.”

About Diagram

Diagram is a Quebec-based venture builder that conceives, launches, and invests in innovative technology companies. Working alongside experienced founders, Diagram combines access to capital, hands-on support, and a deep ecosystem of partners to launch and scale businesses.

Since its inception in 2016, Diagram has launched and invested in 23 companies including leading technology companies such as Dialogue, nesto, Novisto, and ClearEstate, all headquartered in Quebec. Diagram is deeply committed to regional economic development, with over 50% of its capital invested in Quebec-based companies, directly contributing to the creation of more than 1,200 full-time jobs in the province.

For more information, visit www.diagram.ca.

About Sagard

Sagard is a multi-strategy alternative asset management firm with over $15.7 billion in assets under management. Sagard oversees a diverse portfolio of 125 companies and employs a global team of 350 professionals, with a strong presence in Quebec. Its investments span venture capital, private equity, private credit, real estate, and royalties. Sagard provides flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and value creation experts.

Sagard is deeply committed to economic and community development in Quebec. Across its strategies, Sagard has invested nearly CA$300M in 15 Quebec-based companies, creating approximately 2,900 full-time jobs and facilitating over 20 partnerships with Quebec-based corporate partners. Sagard also co-founded the Indigenous Leadership Circle and the Black Wealth Club to support and unite talented Indigenous and Black business leaders in Canada.

For more information, visit www.sagard.com.

SOURCE Diagram

For further information: Adam Daifallah, adam.daifallah@teneo.com