Conexus Venture Capital (CVC) has successfully closed its second fund, hitting its $30 million target dedicated to bolstering Saskatchewan's technology sector. The fund is now oversubscribed, indicating robust investor appetite and a strong belief in the province's burgeoning startup landscape. This significant capital injection is poised to accelerate the growth of the region's most ambitious and innovative early-stage companies, providing them with crucial resources to scale.
A Significant Boost for Prairie Tech
The fund's journey began in May 2024 with a foundational $15 million commitment from its anchor investor, Conexus Credit Union. The remaining $15 million was secured over an 18-month period from a diverse group of limited partners, including eight other credit unions, institutions, and family offices. This achievement is particularly noteworthy given the challenging fundraising climate that has affected the broader North American venture capital market, demonstrating strong local conviction.
The Conexus Commitment to Innovation
Conexus Credit Union's role extends far beyond its anchor investment, positioning itself as a major driver of economic activity in the province. Celina Philpot, CEO of Conexus, highlighted this commitment, pointing to the success of its incubator, Cultivator, which has supported 196 startups creating over 600 jobs. The credit union's investment in CVC Fund #2 is a direct testament to its belief in the potential of Saskatchewan's entrepreneurs and tech startups.
Building on a Successful Track Record
CVC's first fund, established in 2019, set a high benchmark by investing in 17 Prairie-based startups and ranking in the top quartile of its vintage. Its portfolio includes two of the province's most successful tech companies, 7shifts and Coconut Software, demonstrating a keen eye for identifying high-potential ventures. The firm has already realized successful exits from companies like Curatio and Thinkific, validating its investment thesis and generating strong returns for its partners.
Strategic Investments Already Underway
CVC Fund #2 is already actively deploying capital, having made strategic investments in three promising startups: home care tech company Alto, parking management software provider Offstreet, and soil remediation platform LiORA. The fund will continue its predecessor's strategy of backing 10 to 15 companies, primarily focusing on software startups from the pre-seed to Series A stages. CVC often takes a hands-on approach by leading or co-leading investment rounds and providing direct support to founders.
Fostering a Thriving Ecosystem
The new fund's capital will be deployed into a fertile ecosystem ripe for accelerated growth, supported by high-performance incubators and government incentives like the Saskatchewan Technology Startup Incentive. Jordan McFarlen, CVC's Managing Director, described the achievement as "a vote of confidence in the founders building here." This sentiment was echoed by Matt Fahlman, CEO of Offstreet, who noted that having a local partner like CVC is a huge win for Saskatchewan tech.
The successful closing of CVC Fund #2 represents more than just a financial milestone; it is a powerful endorsement of the Saskatchewan technology sector's potential and maturity. With fresh capital, a proven investment strategy, and deep roots in the community, CVC is well-positioned to catalyze innovation and drive significant economic growth across the prairies. The fund's oversubscription confirms that investors are keenly watching the province's ascent as a vibrant and sustainable Canadian tech hub.