Montréal-based venture studio TandemLaunch has closed its fourth fund for early-stage deep technology startups at more than $37 million CAD.
The Government of Canada’s Venture Capital Catalyst Initiative (VCCI) committed $6.5 million to TandemLaunch through its inclusive growth stream as part of its final close, joining existing Fund IV limited partners (LPs) that include leads BDC Capital and Fonds de solidarité FTQ, as well as over 30 undisclosed family offices and angels from across Canada and abroad.
Founded in 2010, TandemLaunch builds and backs startups in artificial intelligence (AI), computer vision, internet of things, sustainability, and advanced sensors.
To date, TandemLaunch has invested in cleantech startup Agapyo and AI company Waveshaper via Fund IV.
Through its fourth fund, TandemLaunch aims to fuel the launch of 15 new Montréal tech companies. The company creation and venture capital (VC) firm has already invested in two businesses to date via Fund IV: cleantech startup Agapyo, which is developing a compostable plastic replacement, and AI audio processing company Waveshaper.
TandemLaunch announced its first close of Fund IV in July 2024 at $27 million. At the time, founder, managing partner and CEO Helge Seetzen told BetaKit that TandemLaunch hoped to raise up to $40 million for Fund IV by September.
Like many other Canadian VC firms, TandemLaunch appears to have taken longer than expected to close its fund and ultimately fallen slightly short of its goal.
Amid today’s challenging VC market, LPs have become more cautious and selective, which has led to smaller funds and longer fundraising timelines for the firms that invest directly in Canada’s tech startups. Just this week, fellow early-stage Canadian VC firm CMD Capital halted fundraising and paused its operations indefinitely, citing market conditions.
In a statement, Canada’s minister of small business Rechie Valdez cited TandemLaunch’s “proven track record of transforming breakthrough university technologies into high-potential startups” as one of the factors that drew the federal government to invest in the firm via VCCI, which is managed by BDC Capital.
To date, TandemLaunch claims it has created over 30 successful ventures collectively valued at over $700 million that currently employ close to 700 tech workers in Québec—down from the over 800 it reported last year. The firm’s portfolio includes Sportlogiq, Wrnch, Soundskrit, Mirametrix, and HaiLa Technologies, among others.
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TandemLaunch specializes in university tech transfers, scouting for interesting intellectual property (IP) at universities, acquiring that IP, building a team, and then creating and incubating a startup to commercialize it, taking an equity stake in the company.
Seetzen currently leads the firm alongside longtime managing partner Émilie Boutros.
As the venture studio model—where organizations create, build, and provide early capital to startups in-house—has become more common in recent years, Seetzen has argued TandemLaunch’s real differentiator has become its international approach to intake and talent.
Feature image courtesy TandemLaunch.