Canadian venture capital firm Golden Venture Partners has closed its second fund, Golden Venture Partners II, at $40 million. Capital commitments to the oversubscribed Fund II were led by Northleaf Venture Catalyst Fund, which contributed $15 million of the total, with participation from BDC Capital and other investors. The Toronto-based Golden Venture Partners said a new fund that is larger than the $17 million Fund I will allow it to lead or join seed deals of up to $750,000; undertake larger and later-stage investments of up to $1 million; maintain reserves for future portfolio activity; and diversify investing in around 25 mobile technology companies.
BLOG POST (reproduced courtesy of Golden Venture Partners)
Golden Venture Partners II: Bigger and Stronger
We are very excited to announce that we have closed our second fund (GVP II) at $40M. With a significantly larger fund, we will expand our team and continue our mission of supporting top founding teams across North America who are capitalizing on the huge potential of the mobile market.
Over the course of the past 3 1/2 years, out of our $17M first fund, we have backed 18 amazing founding teams/companies across North America, including Wattpad, YesWare, Top Hat, OMSignal, Apptentive and, more recently, exciting startups like Navdy and Snowball. On the heels of the huge momentum of growth in value of our first fund, we decided to raise our second fund to continue to invest in the next generation of high-quality, mobile-focused founders.
GVP II was led by Northleaf Venture Catalyst Fund with participation from BDC Capital and other terrific investors who have supported us from the very beginning. We decided to cap GVP II at $40M, despite being oversubscribed. This allows us to remain squarely in the micro-VC market category where we add the most value and have the pleasure of working with the best and the brightest founding teams and co-investors at the earlier stage of the market.
So why a larger fund? A larger fund allows us to:
· Lead or participate in initial seed investments of $250,000-$750,000
· Invest in companies at the seed + stage who have achieved signs of product-market fit or impressive early traction, with investments of up to $1M
· Better reserve for our existing investments
· Diversify by investing in approximately 25 companies
Our thesis has not changed: with nearly 1.75-billion smartphone users expected globally by the end of 2014, 350-million in North America today, and the behavioral changes that have followed, there has never been a market that matches mobile both in terms of size or innovation potential. We continue to focus on how mobile penetration will disrupt existing value chains or create entirely new ones, with a particularly strong eye towards mobile enterprise, mobile vertical marketplaces, mobile advertising and data, and mobile consumer opportunities including the Internet of Things. As with GVP I, we will make exceptions and foray outside of mobile for amazing founding teams who are truly disruptive, with a special focus on those who are based in the super exciting Toronto/Waterloo technology ecosystem. As always, we will only invest when we believe we can add significant value to our partners.
GVP II is designed to meet the evolving needs of the seed stage ecosystem to continue returning incredible results to the founders, investors, and co-investment syndicates we support. We couldn’t be more excited to keep on rolling!
Source: Golden Venture Partners
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