Inovia launches $325 million seed fund

Already having a capital under management of nearly 2 billion US, the Montreal-based Inovia will announce this Wednesday one of its largest start-up funds, endowed this time with 325 million US.

Karim Benessaieh
The Press

This fifth seed fund since the founding of Inovia Capital in 2007 aims to recruit up to 25 young tech companies within four years. We are looking for between 13 and 15 in the so-called “seed” phase, and 8 to 10 for a first major Series A financing.

Two companies have already been found for this “Inovia V Venture Capital Fund”. Signal1, a Toronto-based start-up that identifies risks of worsening hospital patients through artificial intelligence, was awarded $10 million in seed funding in a round led by Inovia . Flare, which specializes in enterprise cybersecurity, also benefited from a Series A funding round of 9.5 million.

In addition to existing investors such as Investissement Québec and the Caisse de depot et placement du Québec, the new fund has a quarter of new investors such as BCI, from British Columbia, AVAC, from Calgary, and Montreal-based Trans-Canada Capital.

“The principle is that we are looking for strong teams, which develop technologies in very large markets, explains Magaly Charbonneau, partner at Inovia. We want our companies to eventually become global companies. »

Focus on SaaS

In the current context, where the risks of an economic slowdown are very present, we also want to bet on companies that can adjust quickly by reducing costs and finding new business opportunities, she specifies.

Reserved for technology companies, Inovia has also specialized over the years in the type that has the wind in its sails, that of “software as a service”, better known by its English designation of “software as a service”. or SaaS. “One hundred percent of revenue is generated by software and licenses,” says Mr.^me Charbonneau. We also reserve a minority place for companies that have set up a virtual market in which customers and suppliers can meet. Inovia’s portfolio currently has, according to its site, 62 companies, including AlayaCare, Busbud, Hopper, Lightspeed, RenoRun and Sonder.

Inovia’s recruits for this fifth start-up fund will be of the same ilk, in sectors that we consider promising, announces M^me Charbonneau. “We really like the future of work, security, travel, marketplaces, digital health. We stay in those sectors, where we have expertise. »

After the start-up fund, companies have access to two growth funds and a continuity fund within Inovia. According to the partner, nearly a third of companies recruited over the years have taken advantage of this process.