Vancouver-based Pender Ventures has officially closed its second venture capital fund, raising over CAD 100 million to invest in early-stage B2B software and health tech startups across Canada. This fund, the Pender Technology Inflection Fund II, marks a major milestone for the firm, despite the challenging venture capital landscape in recent years.
Overcoming Market Challenges
The fund’s final close in September 2024 was a significant achievement, as Pender Ventures faced extended timelines due to more challenging fundraising conditions. Managing partner Maria Pacella attributes the success to three key factors: strong returns on previous investments, committed anchor investors like Export Development Canada (EDC), and maintaining a consistent investment strategy.
“We stuck to our investment thesis and scope for Fund II, and that consistency has paid off,” said Pacella. The firm was able to secure support from returning investors like EDC and new backers, including the Business Development Bank of Canada and several high-net-worth individuals.
Focus on High-Growth Startups
With the new fund, Pender Ventures is focused on investing in Canadian B2B software and health tech companies that have reached a crucial “inflection stage,” meaning they have product-market fit and a proven revenue model. The firm plans to back 12-14 companies, offering initial investments of $2-$5 million.
Pacella highlights health as a promising area, noting that Canadian innovation in this space is globally competitive. “There are big problems to solve in healthcare, and we’re excited to be part of the solution,” she added.
Pender Ventures has already made four investments through the new fund, including in B2B software startups Traction Rec and Traction Complete. The firm plans to expand its team and strengthen its presence across Canada to support its growing portfolio.
As the Canadian VC landscape continues to evolve, Pender Venture’s latest fund positions the firm as a key player in the country’s growing tech ecosystem.
Let us know your thoughts on this development and be sure to follow TechHubspot for more updates on the latest in venture capital and innovation.