Québec to invest $50M in Cycle Capital’s $300M new cleantech fund

In 2018 Budget, Québec government said it is committing up to $50 million to support cleantech venture capital firm, Cycle Capital Management (CCM) Inc.

The new Cycle Capital fund, with a target size of $300 million, will invest in businesses specialized in green chemistry, the new generation of biofuels, biomass conversion, sustainable transport, renewable energy, energy storage, energy efficiency and sustainable agriculture.

In order to secure Québec government funding, the Cycle Capital fund must meet the following criteria:

  • a fund with a minimum size of $150 million;
  • capital that will be matched on the basis of $1 from the government for a minimum of $2 from institutional, private and strategic investors;
  • a minimum investment in Québec companies in the clean technologies sector corresponding to the capital provided by the Québec government;
  • an investment policy, a governance model and a management team that follow business best practices.

Since its inception in 2009, Cycle Capital has raised and managed four cleantech specialty funds:

  1. Cycle Capital I, a $80.4 million 2009 vintage fund
  2. Cycle C-3E, a $42 million 2011-vintage seed fund
  3. Cycle Capital III, a $109 million-2013 vintage fund
  4. Qingdao Chengtou Haisi Cycle Equity Investment Fund, a RMB 600 million or $125 million 2017-vintage fund jointly managed with China’s Qingdao City Construction Investment Group (Chengtou)

photo credit: Cycle Capital

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), 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.