Toronto-based Cross-Border Impact Ventures (CBIV) has successfully secured a $58 million first close for its second fund, the Women’s and Children’s Health Technology Fund II. The firm is targeting a total of $125 million USD, with a final close anticipated by the second half of 2027. This initial funding milestone underscores growing investor interest in healthtech solutions dedicated to historically underserved demographics.
Investor Confidence and Support
The fund attracted a diverse group of limited partners, including the German development bank KfW, the Skoll Foundation, Capricorn Investment Group, and Ceniarth. KfW is returning as a concessionary capital investor, a structure that provides downside protection and enhances potential returns for other investors. This strategic backing from prominent institutional and impact-focused investors highlights strong confidence in CBIV's mission and strategy.
Investment Strategy and Focus
With its new fund, CBIV will continue its strategy of investing in Series A and Series B healthtech companies. The firm plans to write cheques between $2 million and $5 million for approximately a dozen ventures specializing in medical devices, diagnostics, and digital health. For Fund II, the firm is also incorporating a climate impact lens and considering earlier-stage companies to broaden its scope.
Track Record and Market Opportunity
CBIV's inaugural $90.3 million fund established a strong track record, backing 11 companies that have collectively reached over 356,000 women and children across 32 countries. The portfolio includes a successful exit with the acquisition of Sonio by Samsung Medison, reinforcing the firm's investment thesis. Managing Partner Donna Parr noted that advances in technology are creating new opportunities to build valuable companies while improving care.
Navigating the Canadian Landscape
Despite being based in Toronto, the impact fund has not yet invested in a Canadian company, citing a sparse early-stage medtech landscape in the country. The partners have found it challenging to identify local deals at the early growth stages where they typically invest. However, they remain hopeful that the new fund will provide an opportunity to support promising Canadian ventures in the coming years.
Broader Market Context
The successful first close comes amid a challenging venture capital market, with recent studies indicating a significant drop in femtech funding. However, Managing Partner Annie Thériault remains optimistic, observing a convergence of scientific innovation, policy support, and institutional capital. She believes that investors who deeply care about women's health are "twice as motivated" to support impactful ventures.
The $58 million first close for Cross-Border Impact Ventures' second fund marks a significant step forward for women's and children's health technology. By blending financial returns with measurable social impact, the firm is capitalizing on a market opportunity that has long been overlooked. This new capital injection will enable CBIV to continue building a portfolio of innovative companies poised to improve healthcare outcomes globally.