MONTREAL and OTTAWA, Jan. 26, 2016 /CNW/ - BDC Capital has committed an additional $3 million to the early stage venture capital fund managed by Mistral Venture Partners, bringing its total commitment to $6 million. The Business Development Bank of Canada subsidiary had made a first commitment of $3 million in June 2014. This increase will enable Mistral Venture Partners to augment follow-on investments in its best portfolio companies. Since its first closing in January 2013, the fund has made investments in 12 startups and may invest in as many as five more. Mistral's investment focus is on smart enterprise companies (mobility, cloud and Internet of Things).
BDC Capital is the lead investor in Ottawa-based Mistral Venture Partners, which is headed by principal managing partner Code Cubitt. Mr. Cubitt returned to Canada to launch Mistral with partner Bernie Zeisig after spending 15 years in the United States as a venture capital investor in Silicon Valley and chief operating officer at medical device company Zephyr Technology (now part of Medtronic). Mistral's team also has two California-based partners, Mike Scanlin and Gordon Smythe, as well as 12 "Executive Fellows". The latter are seasoned entrepreneurs who assist the core team in mentoring portfolio companies and opening doors with potential customers and financiers in Canada and the U.S.
"Mistral has done an outstanding job in their first three years identifying high potential startups and supporting them," says Dominique Bélanger, Managing Director of Fund Investments at BDC Capital. "Their connections in Canada and the U.S. and the mentorship the team provides have made a big difference to their portfolio companies." Supporting emerging Canadian VCs like Mistral Venture Partners with funding and advice is an integral part of BDC Capital's strategy to develop the country's venture ecosystem.
Mistral's portfolio includes five startups headquartered in the Ottawa region: CENX, Klipfolio, Giatec Scientific, Rare Logic and The Better Software Company; Quebec's Foko and OMsignal; Ritual and Sensibill in Toronto; and two more located south of the border: Stockpile and CloudCheckr. The firm is a co-investor in four of these companies alongside leading U.S. venture capital firms Sequoia Capital, Bessemer Venture Partners, Greylock Partners, Mayfield Funds and Highland Capital Partners.
"BDC Capital plays a critical role in growing and shaping innovation in Canada," says Cubitt. "We're very proud to have them as partners in Mistral. BDC Capital's commitment to the ecosystem and their highly professional approach has played a significant role in our success and we look forward to building a lasting franchise together."
About BDC Capital
A subsidiary of the Business Development Bank of Canada (BDC), BDC Capital offers a full spectrum of specialized financing and investment solutions to help Canadian entrepreneurs achieve their full growth potential. With more than $1.6 billion under management, BDC Capital takes a strategic, patient approach to nurture companies' development over the long term.
From venture capital and equity, to growth and transition capital, our team of over 100 experienced, local professionals partner with entrepreneurs to identify and meet their needs on flexible terms. Some of the sectors in which we specialize include IT, industrial/clean/energy technology, and healthcare. For more information, please visit www.bdc.ca or follow us on Twitter at @BDC_Capital.
SOURCE Business Development Bank of Canada