Vancouver-based Version One Ventures has raised $108-million USD ($150 million CAD) for two new funds.
The news: The early-stage investor in deep tech startups announced on Tuesday morning that itâs closed $78-million USD for its fifth Version One Fund, and $30-million USD for its third Opportunities Fund.
The venture firm said its investment focus has evolved alongside major technological shifts, with a renewed focus on AI infrastructure and applications, robotics and physical AI, deep tech, and biology. Itâs also looking at investing in emerging global ecosystems like India and Africa.
From the source: âThere have been fewer startups coming out of Canada,â founding partner Boris Wertz told The Globe and Mail. âThe early stage here hasnât been as interesting the last few years.â
Following the thread: According to The Globe and Mail, Canada once accounted for half of Version Oneâs investments; now thatâs about 10 percent. Version One has backed notable Canadian companies like Ada, Dapper Labs, Jobber, Clio, Top Hat, and Wattpad, and reportedly made huge returns from its initial $2 million investment in Coinbase.
But despite that success data shows Wertzâs assessment isnât that far off. A report from Toronto-based VC firm Leaders Fund found last year that almost half of Canadaâs âhigh-potentialâ startups were located in the United States.
Final thought: It appears Wertzâs sentiment has changed since he was featured in last yearâs inaugural issue of BetaKit Most Ambitious, where he said he felt like Canada was âback in building mode,â and that the country is âvery good at being at the forefront of crazy ideas.â
Deep tech is a complex sector defined by tackling complex challenges in science and engineering, making it difficult to attract investment. If the aforementioned founder exodus has made it even harder to find good Canadian companies, then itâs perhaps no surprise that Version One is starting to invest elsewhere.
Feature image courtesy Version One Ventures.