Georgian Partners raises first Canadian venture fund valued at over $1 billion CAD

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Toronto-based Georgian Partners has secured $1.1 billion CAD ($850 million USD) for its fifth fund, making the private venture fund the first in Canada to be valued at over $1 billion CAD.

The firm’s vice president of marketing Ben Wilde confirmed the amount closed to BetaKit, but declined to provide further comment.

Georgian invests in enterprise software startups in the US and Canada seeking investment between $20 and $50 million.

In September, it was revealed through a filing with the US Securities and Exchange Commission that Georgian Partners was looking to raise a $996 million CAD ($750 million USD) private venture fund. The September filing showed that Georgian had yet to close any funding at that time. In December, Private Capital Journal reported that the firm held an initial close for the fifth fund, called Georgian Partners Growth Fund V.

As first reported by The Globe and Mail, according to documents filed with US Securities Exchange Commission (SEC) on Tuesday Georgian disclosed it has raised $100 million USD more than its target of $750 million USD, bringing the fund to a total $1.1 billion CAD.

Georgian was founded in 2008 and closed its first $70 million fund in 2010 followed by $200 million in its second fund, and $485 million for its third. Georgian raised its $730 million fourth fund less than two years ago.

Georgian invests in enterprise software startups in both the US and Canada that are in the stage of earning $500,000 or more in monthly recurring revenue and searching for investment between $20 and $50 million.

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The fund has backed Canadian startups like Top Hat, Shopify, FreshBooks, and Ritual. It was founded by Justin LaFayette, Simon Chong, and John Berton, and initially focused on applied analytics software. The firm has shifted focus over the last few years to make investments in artificial intelligence, focusing on applied, conversational, and trust-based AI.

According to The Globe’s reporting in June, a principal feature of Georgian’s funding model was its “impact team,” which includes research scientists, analysts, and engineers aimed to help Georgian’s portfolio companies leverage broader tech trends. The team would help to develop software tools that AI companies can help anonymize customer data and explain algorithmic decision-making.

Image source Georgian Partners

Isabelle Kirkwood

Isabelle Kirkwood

Writer, globetrotter, drone pilot & David Attenborough enthusiast