Teralys Capital has received $40 million CAD from CDPQ in an increased commitment to its seed-stage fund of funds, Fonds québécois d’amorçage Teralys.
CDPQ announced the investment earlier this week, and the commitment comes in addition to the $50 million CAD that CDPQ invested to have Teralys launch the fund in 2019.
The new investment brings Fonds québécois d’amorçage Teralys’ total fund size to $90 million CAD, though a portion of that has already been distributed to five funds.
Teralys was one of four fund-of-funds managers recently chosen to dole out $350 million in VCCI capital.
The re-commitment to the seed-stage fund of funds follows the Venture Capital Catalyst Initiative (VCCI) also re-committing to Teralys for the latest (and possibly final) round of the federal fund of funds program.
Teralys was one of four fund-of-funds managers recently chosen to dole out the $350 million in VCCI capital that was committed in the federal Budget 2021. Each fund is now set to raise a new fund of funds, though Teralys has yet to announce its plans.
HarbourVest and Northleaf Capital Partners have also yet to announce their plans for their latest VCCI-backed funds, while earlier this month, Kensington Capital Partners announced its is looking to raise $290 million.
In terms of Fonds québécois d’amorçage Teralys, the firm invests in funds that in-turn invest mainly in Québec-based seed-stage companies. To date, the fund has invested in four “innovation funds” and one life science fund.
That portfolio spans: Anges Québec Capital, which invests alongside angel network Anges Québec; provincially-focused seed fund Boreal Ventures, which is also backed by Centech; Ottawa-based Mistral Venture Partners; and Brightspark’s $60 million Canadian Opportunities Fund.
On its website, Brightspark noted that it has begun the fundraising of its second Canadian Opportunities Fund.
Fonds québécois d’amorçage Teralys is also a founding partner of the Concours des fonds d’amorçage du Québec alongside the provincial government, Le Fonds de solidarité FTQ, and Fondaction. The competition looks to foster the creation of new investment funds.
Teralys currently has $2 billion under management across four venture capital funds, and two legacy funds from CDPQ and Fonds de solidarité FTQ.
For its VCCI-backed funds, Teralys is entering into its third such fund backed by federal venture support programs. In the mid-2010s, the firm raised $375 million CAD backed by VCCI’s predecessor, the Venture Capital Action Plan (VCAP). That fund backed 20 venture funds across Canada, the United States, and Europe, and made 11 direct, co-investments into North American companies.
Teralys’ next VCCI-backed fund amounted to $400 million CAD, and according to the firm’s website, is still actively investing. To date, it has invested in 22 venture capital funds and made 11 co-investments.
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