ScaleUP Ventures Fund I final closes at $100M

ScaleUP Ventures Inc. has held third and final close of its inaugural fund, ScaleUP Ventures Fund I, with over $100 million in total capital commitment.

The third closing includes commitments from BC Tech Fund (managed by Kensington Capital Partners) and several BC LPs. ScaleUP has opened a Vancouver office as part BC Tech Fund commitment requirements.

On July 1 2017, Derek Spratt joined Vancouver office as Partner and Managing Director to expand the fund’s activity across Canada.

In March 2017, ScaleUP Ventures held a second close with $32.25 in addition commitments million, bringing the fund’s total capital commitment to $70.25 million. The second close included the $25 million previously committed by the Province of Ontario.

“We are excited about the opportunities presented by the ScaleUP fund, with its unique investor base and strong entrepreneurial team,” said Gerri Sinclair, Managing Director of Kensington Capital, the manager of the BC Tech Fund, “The BC Tech Fund is proud to be investing with ScaleUP as it extends its platform across Canada with the launch of its new Vancouver office.”

“ScaleUP’s presence in Vancouver will be a tremendous asset to British Columbia’s rapidly expanding tech sector,” said Bruce Ralston, Minister of Jobs, Trade and Technology. “The BC Tech Fund is doing what it was designed to do and that is to expand the availability of local venture capital in B.C. so promising companies to have sufficient access to capital in order to realize their growth potential in the province.”

ScaleUP Ventures brings together two key components: a venture capital fund and a Leadership Council comprised of some of Canada’s most successful business leaders, startup entrepreneurs, and technology investors. Leadership Council members (including RBC, TD, Scotiabank, Rogers, Bell, Telus, Magna and Weston) provide strategic guidance and mentorship to the fund’s high-potential companies, and give corporate Canada more exposure to leading-edge innovation.

“The ScaleUP model has been very appealing to entrepreneurs. Along with seeing great deal flow we are increasingly the investor of choice for entrepreneurs. The opportunity is large, and with this fund we plan to make 20-30 investments and have strong reserves to invest further in our businesses reaching global scale,” said Kent Thexton, General Partner, ScaleUP Ventures.

To date, ScaleUP has reviewed over 500 companies and has made ten investments; seven of which are based in Ontario. Investees include Fusebill, an Ottawa‐based company that develops software to manage subscription billings; FundThrough, a Toronto‐based small business lender; Naborly, a Toronto-based company using machine learning for tenant screening; and Neuranet, a Toronto-based AdTech business with its market-leading Flexitive platform.

Following ScaleUP’s $1.7 million Series-A lead investment in Toronto-based Crowdcare Inc., the company landed an expanded deployment with Rogers, one of ScaleUP’s active corporate LP members. This successful case deployment has since led to secured contracts with emerging carriers internationally, including BT (British Telecom) and Sprint.

“It’s terrific to see the ScaleUP model working, and how leading Canadian corporates have embraced the need for innovation. Engagement with startups has never been better and bodes well for scaling companies in Canada”, said Nadir Mohamed, Chair of ScaleUP Ventures.

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.