Teralys Capital invests $50 million in the second Québec-based fund of Rho Capital

A complete funding ecosystem steadily put in place in Québec
An additional $100 million now available to our local technology entrepreneurs

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MONTREAL, May 23, 2012 /CNW Telbec/ - Teralys Capital is proud to announce a $50 million investment in Rho Canada Venture Fund II ("Rho Canada II") concurrent with its initial closing of $100 million. Rho Canada, based in Montréal, will build on the success of its prior fund with early stage investments in new media, mobile applications, wireless infrastructure, semiconductors and software. The fund will be managed in partnership with Rho Capital Partners ("Rho Capital"), a successful international investment firm since 1981. Teralys Capital is also partnering with leading private and Canadian institutional investors, including BDC Venture Capital, Ontario Venture Capital Fund and Fondaction.

"Rho Canada plays a pivotal role with our entrepreneurs in Québec by providing them access to an international network of strategic partners, customers and co-investors", said Jacques Bernier, Managing Partner of Teralys Capital. "Rho Capital and Rho Canada have a significant history of deal making in Québec, having financed several companies in the province over the past 5 years and attracted over $200 million in direct and foreign investments. Recent investments in Accedian Networks, Beyond the Rack and Enerkem clearly illustrate how Rho Capital's network and expertise can accelerate their growth".

"The closing of this second fund will enable Rho Canada to continue to add value to Québec entrepreneurs while delivering strong returns to our investors", said Jeff Grammer, Partner with Rho Canada. "The continuous support of our institutional investors has enabled us to back technology companies that will have a strong impact on Canada's economy and we look forward to continue to deliver on this strategy with our second fund".

The announcement was held in Montreal earlier today during "DemoDay" and "AccelerateMTL 2012", two events organized to help early stage technology entrepreneurs to innovate, collaborate and accelerate their growth. Teralys Capital' seven fund investments in the technology sector, from early stage to growth and expansion, concurrent to such community-driven activities, have helped Québec's tech companies access capital and expertise at every step of their development.

"The Québec startup ecosystem has been going through a renaissance over the past few years which was fueled in great part by Teralys Capital", said Jean-Sébastien Cournoyer, co-founder of FounderFuel. Entrepreneurs with a vision to build great companies need a complete funding ecosystem to succeed. We're happy to have Rho Canada as a partner and co-investor. "The ability to build real cross-border relationships and provide mentoring to promising startups is key", added Chris Arsenault, C100 Charter Member and Board Member.  "With this new fund, Rho Canada joins a select group of early stage investors that can help local entrepreneurs scale their businesses internationally".

About Teralys Capital
Teralys Capital is a fund of funds created to finance private venture capital funds focused on investing in life sciences, information technology and cleantech companies. The fund has over $700 million in capital commitments from Caisse de dépôt et placement du Québec, the Solidarity Fund QFL and Investissement Québec. Teralys Capital is also managing two existing portfolios of venture capital funds with additional assets under management of over $600 million. It is currently the largest fund of funds in Canada. Visit www.teralyscapital.com for more information.

About Rho Canada
Rho Canada is a division of Rho Capital Partners focusing on early-stage investing in Canada's most innovative technology companies. The Rho Canada team comprises a unique combination of entrepreneurial, operational and venture investment experience, in the United States and Canada. Rho Canada has $200M under management across two early stage funds. For more information, visit www.rhocanada.com.

About FounderFuel and "DemoDay"
FounderFuel is a mentor-driven startup accelerator program that provides seed capital and access to veteran entrepreneurs, angel investors, venture capitalists and senior executives. FounderFuel hosts creative teams for a 12-week intensive mentorship that culminates with a "Demo Day" pitch in front of professionals, media representatives and Canadian investors. Visit www.FounderFuel.com for more information.

About C100 and "AccelerateMTL 2012"
C100 is a member-driven organization dedicated to supporting Canadian technology entrepreneurship and investment.  C100 is comprised of a select group of Canadians based primarily in Silicon Valley, including executives of leading technology companies, experienced startup entrepreneurs and venture capital investors. C100 has provided mentoring to over 95 startups and participated in over $417 million of tech financings. AccelerateMTL 2012 is an event geared towards connecting local technology entrepreneurs with industry influencers and investors. For more information, visit www.theC100.org.

Note: This press release does not constitute a solicitation to invest in the Rho Canada Venture Fund II or any other fund managed by Rho Capital Partners.

For further information:

Teralys Capital
Eric Legault
Managing Partner
999 de Maisonneuve West, Suite 1700
Montreal (Quebec) H3A 3L4
[phone]
[e-mail]