A new injection of cash has piled itself into Canada as Kensington Capital Partners (Kensington) announced the launch of the “Kensington Venture Fund” with an initial closing of $160 million, and a goal to reach $300 million. This is the next step in the Government of Canada’s Venture Capital Action Plan (VCAP) and this fund of funds (FoFs) will specifically invest in technology, cleantech, IT, telecommunications, and digital media sectors.
“Canada needs a robust venture capital ecosystem that helps increase private sector investments in start-ups across Canada,” said Hon. Joe Oliver, Minister of Finance. “We all want the next global leaders – and the jobs that will come with them – to be founded here in Canada. That is why the establishment of the Kensington Venture Fund is so important.”
“By giving Canadian technology companies the ability to grow and thrive at home, this Fund will help stem the gravitational pull that is driving so many of Canada’s leading entrepreneurs, engineers, scientists, and our most promising emerging technology companies to Silicon Valley,” said Rick Nathan, Managing Director, Kensington Capital Partners and a former Chair and President of the CVCA, Canada’s Venture Capital and Private Equity Association. “This new Fund is an opportunity for Kensington to become a larger part of Canada’s growth story. We appreciate the confidence of the Government and our investors and we are excited to build great new companies across Canada.”
According to the press release, Kensington sees opportunities “in the underserved markets of Western Canada.” The group of investors into the fund include Richardson GMP, OpenText Corporation, Royal Bank of Canada, BMO Financial Group, CIBC, TD Bank Group, and Scotiabank, Kensington Private Equity Fund (KPEF), as well as individual investors and the Government of Canada.