Build Ventures, which focuses on investing in early-stage technology companies across Atlantic Canada, has announced that its second fund, Build Ventures II, has closed with $50.5 million in committed capital.
“We look forward to helping more companies in the region explore and perfect the science of scaling up.”
– Patrick Keefe, Build Ventures
The Halifax-based firm called this the first close of its second fund, however, began building Fund II in December 2017, when the Government of Nova Scotia committed $15 million. In August 2018, the New Brunswick government committed $10 million. According to Entrevestor, Build Ventures also received $7.5 million in funding from the Government of Canada’s Venture Capital Catalyst Initiative (VCCI), and other undisclosed investors, at the end of 2018, bringing its total funding to more than $40 million.
Limited partners for Build Ventures II include the various government investors as well as a number of undisclosed private sector investors.
“[This] means more money for the exceptional companies performing at a high level in our region,” said Patrick Keefe, managing partner at Build Ventures. “With Build II, we look forward to helping more companies in the region explore and perfect the science of scaling up, allowing them to expand into new markets.”
With $50.5 million as the initial close, Build Ventures stated plans to grow Fund II to more than $64 million. Rob Barbara, general partner at Build Ventures told BetaKit that an additional $8.5 million will potentially be committed from public investors, contingent on the VC firm raising matching funds from private investors, estimated to be at least $5 million.
Build Ventures provides early-stage capital to startups in the areas of information technology, cleantech, and life sciences. Build Venture’s first fund totalled $65 million and invested in 14 companies spanning SaaS, AI, machine learning, Agtech, and medical devices spaces. Its portfolio includes Radient 360, Muse, and Affinio.
Last year it was noted that Build Ventures will invest between $1 million and $5 million in early-stage companies that have an established business model, a team, a large target market, are generating revenue, and need to increase their capital. As part of its investments the firm also offers portfolio companies advice around product development, financing, business development, market intelligence, brand building, and HR strategy.
“[Build Ventures is] excited to be to have raised Fund II and to continue doing the work that we’ve been able to do for the last six years in Atlantic Canada,” Barbara said. “We feel like we have had a significant impact on the region and we feel like we have a portfolio that positions us to generate great returns for our limited partners, and we are very happy to be able to continue doing that.”