Round13 Capital has announced the closing of a $95 million fund to invest in growing Canadian companies.
The Toronto-based venture capital firm was started by Lavalife co-founder Bruce Croxon as well as technology investor John Eckert. The firm invests up to $5 million at a time in Canadian companies that are immediately prepared to scale.
Since the closing of the $95 million fund, Round13 has already made a handful of investments focusing on early-stage B2B software. Those companies include Statflo, a startup that uses AI to create the best possible buying experience in retail; Hubdoc, a service that imports financial documents then spits out data you can actually use; and Touchbistro, the aptly named restaurant POS system that specializes in mobile devices like iPads. Round13 looks for companies that need the money to drive sales and marketing components.
“We chose Round13 to lead our seed funding round because we needed smart money, and a true partner,” said Kevin Gervais, co-founder of Statflo. “Bruce and the team are business operators themselves, and they rolled up their sleeves to provide intros, mentorship and candid feedback that has helped us double our revenue in the last seven months.”
Besides founders Croxon and Eckert, other Round13 partners include GrowthWorks investor Scott Pelton and entrepreneur Craig Strong. A large part of the $95 million that was raised came from high-net-worth investors as well as some family offices. Pension fund LiUNA and the National Bank pitched into the fund too.
“We’re looking to invest in entrepreneurs who have found product-market fit, but who now need mentorship and hands-on involvement to accelerate growth,” said Bruce Croxon.
Round13 prides itself on being what they call a “founder-driven fund.” They will go beyond the simple handing-off of money and offer assistance with strategy, operations, and marketing. Croxon, a former Dragon’s Den stalwart, knows that model very well. The other three general partners can add to Croxon’s experience to create a well rounded investing team.
Building on that idea, the fund also brings the expertise of a unique founders board to any sort of investment they make. The board consists of 20 entrepreneurs who have started and grown strong companies within Canada, with examples including Axonify founder Carol Leaman and Shopify co-founder Scott Lake. Each member is committed to serving in advisory positions for the portfolio companies.
Other companies Round13 has invested in include Custom Tattoo, Bridgit and Aislelabs.