Who Will Revive Canadian Venture Capital (Part I)

Today was a banner day for announcements involving a reset of the technology funding ecosystem in Canada.

For a long time, the slow demise of Canadian Venture Capital has concerned me deeply, putting us at an international disadvantage in regards to funding and building our next generation of innovative businesses. You may recall my 2009 post Who Killed Canadian Venture Capital? A Peculiarly Canadian Implosion? which recounts the extinction of almost all of the A round investors working in Ontario.

Since then, many of us have worked to bridge the gap by building Angel Networks, including Golden Triangle AngelNet (GTAN), where I chair the Selection process and using extreme syndication and leverage to replace a portion of the missing A rounds.

Today, the launch of Round 13 Capital revealed a new model for venture finance centred around a strong Founder Board whose members are also  LPs, each with a “meaningful” investment in the fund.  My decision to get involved was based both on this strongly aligned wealth of operating wisdom coupled with the clear strength of the core team.

The launch was widely covered by a range of tech savvy media, including:

To illustrate the both the differentiation of Round 13 and show the depth of founder experience, Bruce Croxon, indicated that the founders board has, measured by aggregate exit value, built over $2.5 billion of wealth in Canada. It is this kind of vision and operational experience that directly addresses the second of my three points that Canadian Venture Capital needs to solve.

It is exciting to be involved with the unfolding next generation funding ecosystem for technology companies of the future. Time will tell the ultimate outcome,  but I’m certainly bullish on Round 13.