Canadian cleantech VC firm Cycle Capital Management (CCM) has announced a $109 million CAD first close of its Cycle Capital Fund IV.
The announcement was made by Andrée-Lise Méthot, founder and managing partner of Cycle Capital, alongside the fund’s sponsor and Québec’s minister of economy and innovation, Pierre Fitzgibbon.
“The fund is bringing clean energy technologies to market, advancing the Canadian economy and enabling us to transition to a low-carbon future.”
The Government of Québec is contributing $50 million to the fund through Investissement Québec. Other investors include Teralys Capital, Fonds de solidarité FTQ, Fondaction, Suez, Hydro-Québec, Innergex Renewable Energy, the McConnell Foundation, Rio Tinto, Vancity Credit Union, and Trottier Family Foundation.
“The environment and clean technologies industry play a significant role in the Québec economy,” said Fitzgibbon. “By participating in the capitalization of the Cycle Capital Fund IV, the government is confirming its commitment to an approach aimed at making Québec more efficient, more innovative and greener.”
The Cycle Capital Fund IV will target cleantech companies across North America, with a focus on Canada, in sectors like energy storage and efficiency, green chemistry, clean transportation, smart city technologies, and AI.
“The ecological health of our planet requires bold solutions and innovative technologies,” said Stephen Huddart, president and CEO of the McConnell Foundation. “The Cycle Capital Fund IV is bringing clean energy technologies to market, advancing the Canadian economy and enabling us to transition to a low-carbon future.”
The company stated that the fund will benefit from Cycle Capital’s VC investment team and active presence in the Canadian and global cleantech ecosystems. To date, CCM has invested $200M and generated $1.2 billion in equity in its portfolio companies.
“Increasing our AUM [assets under management] close to half a billion will allow Cycle Capital to bring innovative clean solutions to market, connect talented entrepreneurs with an extensive network of leading industrial companies, and drive solid financial returns,” said Méthot.
CCM is a Montreal-based impact investor and cleantech VC. The company has offices in Montreal, Toronto and Qingdao, China. The firm invests in development and growth-stage businesses commercializing technologies that reduce greenhouse gas emissions, optimize resource use and improve process efficiency in North America and China. CCM also founded the Ecofuel Accelerator and co-founded the Ecofuel Fund.
“As a long-standing strategic partner for Cycle Capital, Rio Tinto is pleased to renew its support through this latest fund,” said Gervais Jacques, managing director of Rio Tinto Aluminium Atlantic Operations. He noted that Rio Tinto hopes to see the fund invest in technologies similar to its joint project with aluminum company Alcoa, which aims to commercialize a carbon-free aluminum smelting process.
Image courtesy Cycle Capital Management