Montréal-based impact accelerator Cycle Momentum has secured $22.25 million in funding from the Québec government to scale new climate tech projects and launch a new matching funding program.
A portion of the new funding will be used to sustain Cycle Momentum’s programming. The accelerator has committed to conducting 10 programs annually, which it says will benefit 250 companies over the next five years.
The Origo program will allocate $150,000 funding to approximately 10 companies each year.
Cycle Momentum’s new matching funding program, known as Origo, is aimed at supporting startups in the pre-seed and seed stages. The Origio program will initially have a dedicated team of two people, and is open to Cycle Momentum’s accelerated companies as well as other climate tech companies based in Québec. Of the $22.25 million, $12.3 million is earmarked for Origo.
Cycle Momentum hopes to increase investment at the pre-seed and seed stages; attract startups to establish their presence in the province; and accelerate the development of the ecosystem and build a green economy based on Québec tech startups with intellectual property.
In addition to the Government of Québec, Cycle Momentum also receives financial support from VC firm Cycle Capital, Canada Economic Development for Québec Regions, Fasken, PwC, Export Development Canada, Investissement Québec, Power Sustainable, TELUS Pollinator Fund, and Alice Capital.
Patrick Gagné, CEO of Cycle Momentum, said the primary objective of the accelerator and the associated Origo program is to address the challenges faced by startups in accessing funding during critical stages of development.
“The investments will be provided in the form of equity or quasi-equity vehicles, closely aligned with investments made by members of the Circle of Partner Funds,” he said. “The Cycle Momentum’s Origo program will allocate $150,000 CAD funding to approximately 10 companies each year, with the potential for follow-on investments.”
The Circle Partner of Funds is a group of potential investors to Cycle Momentum, which includes sponsor funds, partners and collaborators who are kept aware of investment opportunities through meetings with companies and investment bulletins.
“There’s a critical gap in pre-seed and seed-stage capital for climate tech companies in Canada,” Gagné noted. “Cycle Momentum accelerates over 30 climate tech startups per year. With this investment matching program we will increase deal flow and attract private capital for innovative Québec climate tech startups.”