Toronto-headquartered Sixty Degree Capital has completed a final close of its third venture fund. The fund earmarks $338 million CAD ($250 million USD) to invest in enterprise software and healthtech startups.
“We try to do our best to help the Canadian ecosystem and bridge the gap between the US investing community and Canada.”
Alexandre Nossovskoi, VP principal at Sixty Degree Capital
Sixty Degree Capital, which has invested in Canadian startups like Miovision and Northern Biologics, said its third fund will invest in tech companies between the Series A and pre-IPO stages. The fund is already actively deploying capital into companies like Cato Networks, Docker, NextPoint, Strive Health, Navan, Aqua Security, Arctic Wolf, and Paperspace.
While Sixty Degree Capital declined to disclose the fund’s limited partners or anchor investors, Alexandre Nossovskoi, VP principal at Sixty Degree Capital, told BetaKit in a statement that the LPs were comprised of “mostly Canadian family offices.”
Sixty Degree Capital’s recent fund close comes amid a resurgence in investment for Canadian software businesses. According to a recent report from Canadian accelerator L-SPARK, Canada’s SaaS sector saw a marked year-over-year rebound in investment in 2023, tracking $6.9 billion CAD invested in Canadian SaaS startups in 2023, roughly double the $3.9 billion CAD invested in 2022.
While headquartered in Toronto, Sixty Degree Capital has a presence in San Francisco, Silicon Valley, and New York and has invested in global startups, such as Tel Aviv, Israel-based Cato Networks’ $238-million funding round in September.
Founded in 2017, the firm invests in technologies for enterprises such as data and cloud infrastructure, artificial intelligence, developer tools, and cybersecurity. In healthcare, the firm said it invests in therapeutics, health services, medical devices, and diagnostics.
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“Our goal with the third fund is to continue supporting fast-growing, high-impact companies that are developing many of the enabling technologies that power innovation over the next decade,” Robert Guo, president of Sixty Degree Capital, said in a statement. “We are grateful for the relationships and quality partnerships we’ve built over the last decade, enabling us to really make an impact and help truly great founders achieve great things.”
Fund III comes five years after Sixty Degree Capital closed its first $50-million USD fund, and three years after it closed its second fund, which totalled $100 million USD.The third fund has a 10-year outlook with a five-year investment period, and one-third of its capital will be saved for follow-on investments.
While Nossovskoi said the fund does not have a specific allocation for Canadian companies, they aren’t excluded from consideration.
“Even if not all of our companies are Canadian, we try to do our best to help the Canadian ecosystem and bridge the gap between the US investing community and Canada,” Nossovskoi told BetaKit.
With files from Isabelle Kirkwood.
Feature image courtesy Sixty Degree Capital via its website.