White Star Capital has launched a new $50 million USD seed fund to support early-stage tech startups in Canada and the United States.
Why it matters: The fund aims to address a critical gap in Canada’s venture capital market, where there has been a significant decline in pre-seed and seed investment activity.
The details:
- The fund has secured an initial close of $25 million USD, with a total target of $50 million USD.
- It will lead pre-seed and seed financings, writing initial cheques of $500,000 to $2 million USD, with follow-on capital reserved for breakout companies through Series A and beyond.
- The fund will focus on software startups spanning business-to-business and direct-to-consumer markets, with particular interest in themes such as automation, cybersecurity, healthtech, and the sustainable economy.
- Major Canadian institutions, including Fonds de solidarité FTQ, Capital régional et coopératif Desjardins, Teralys, and TD Innovation Partners, have supported the fund.
White Star Capital, founded in 2014, is headquartered in the United Kingdom and New York, with a strong presence in Canada. The firm has backed more than 100 companies globally and currently manages $1 billion USD in assets.
What they’re saying:
- “We’ve been really happy with our track record overall in Canada,” said White Star General Partner Sanjay Zimmermann, emphasizing the fund’s goal of addressing the shortage of lead investors capable of cutting cheques for more than $1 million.
- “By investing in White Star Capital’s new fund, [TDIP] aims to help fill this critical early-stage funding gap in the Canadian innovation ecosystem, helping to give founders the backing they need to launch, grow, and scale their ventures,” said TDIP director of capital solutions Michelle Sabourin.
The fund will be co-led by Zimmermann and fellow GP Catherine Ouellet-Dupuis, who brings extensive experience in legal, strategy, and corporate development to the team.
The bottom line: White Star Capital’s new seed fund is poised to support the next wave of innovative tech startups in Canada and the US, leveraging the firm’s global network to assist portfolio companies in navigating international growth.
