Inovia Closes US$325 Million Early-Stage Fund

Inovia Capital announces today that it raised US$325 million for its fifth early-stage fund, the latest step in its journey to help build global, sustainable companies that strengthen the Canadian tech ecosystem. 

The fund, which saw strong support from existing and new investors, will back tech-focused companies in their aspiration to become category leaders. The closing brings Inovia’s total capital under management to US$2.2 billion. 

“With this new fund, we will follow the proven strategy that’s enabled us to find so many tech champions in the making since 2007,” said Inovia Partner Magaly Charbonneau. “Thanks to our growing team and our global network of advisors, we’ll continue to back and mentor entrepreneurs through their journey.”

Inovia, which celebrates its 15th anniversary this year, is the largest early-stage investor in Canada. Since the beginning of 2021, the firm has raised three new funds totalling over US$1 billion, a testament to its commitment to tech entrepreneurs. 

With two growth funds, a recently closed continuation fund and an expanding team of experts and former entrepreneurs, the firm is fully equipped to support founders from seed to IPO and beyond. Rewind, Clearco and Snapcommerce are just a few examples of portfolio companies that received seed or Series A funding before graduating to Inovia’s later-stage funds as they conquered their respective markets.

“Digital transformation is accelerating across legacy industries, spurred by the continued evolution of living and working habits,’’ said Inovia Partner Shawn Abbott. “The Inovia network is surfacing great entrepreneurs across Canada and beyond as a result, and we are stronger than ever in our commitment to support them in becoming next-generation category leaders.“

"CDPQ is delighted to continue its long-standing commitment to Inovia and contribute, through this fund, to the emergence and growth of innovating companies,” said Mario Therrien, Head of Investment Funds and External Management at CDPQ. “Over the last 15 years, Inovia has demonstrated an ability to create value for the start-up companies in its portfolio.”

Inovia has already started putting Venture Fund V to work. It led the US$10 million seed investment round in Signal 1, a Toronto health startup that uses artificial intelligence to predict which hospital patients are at a higher risk. It also recently led the CAD$9.5M Series A investment round in Flare, a leading cybersecurity provider enabling organizations to protect their data, financial resources, and reputation.