FinTech fund Portag3 Ventures has raised $198 million for its second fund.
The Portag3 FinTech fund launched in October 2016 backed by Power Financial, IGM Financial, and Great-West Lifeco. Portag3 has also backed other VC firms like insurance and healthcare-focused Diagram, leading the latter’s $25 million fund in January 2017.
Power Financial, IGM Financial, and Great-West Lifeco. are returning as anchor investors in this fund.
Institutional and strategic investors in this close include National Bank of Canada, Intact Financial Corporation, Guardian Capital Group, Equitable Bank, La Capitale Insurance and Financial Group and SSQ Insurance. Portag3 said in a media release that other closings are expected to bring Fund II commitments to at least $300 million, with a target “significantly in excess” of that amount.
“Portag3 Ventures is uniquely positioned as one of the few platforms dedicated exclusively to FinTech on a global scale, combining the people, capital and strategic reach of our LPs to create and support compelling investment opportunities,” said Paul Desmarais III, co-founder and executive chairman. “The early success of our first fund has allowed us to broaden our investor base to include highly strategic capital providers from outside the Power Financial group of companies, which will only strengthen our ability to support ambitious and creative FinTech entrepreneurs.”
Fund II will take a larger stake in its investments, targeting 10 to 20 percent ownership of investee companies. One of Fund II’s most recent investments include Toronto-based integrate.ai’s $39 million CAD Series A.
“We’re honoured outside investors of this caliber have chosen to partner with us,” said Adam Felesky, co-founder and CEO. “We aim to build on our early success from investments in companies such as Wealthsimple, alan and Albert and leverage key learnings from the first fund.”