Whitecap Venture Partners Launches Third Fund; Raises $70M in First Close

TORONTO, ONTARIO--(Marketwired - April 27, 2015) - Whitecap Venture Partners (Whitecap) today announced Whitecap III, the venture capital firm's third fund and first to bring in investments from limited partners (LPs). In its first close, Whitecap has raised $70 million ($20 million more than its initial $50 million target) towards an ultimate fund size of $80 to $100 million. LPs in the new fund include Kensington Venture Fund, Bank of Montreal (BMO), and several high net-worth families.

As a diversified early stage (Series A) venture capital fund focused on businesses in industry sectors where Whitecap has built domain knowledge and has demonstrated success, Whitecap III will invest in Information and Communications Technology (ICT), Med Tech and Food Tech sectors.

"Having invested in emerging growth companies for more than 20 years, we are pleased to have made a significant difference in fostering innovation in Canada," says Carey Diamond, Partner, Whitecap III. "In opening the doors to outside investors in our venture fund for the first time, we believe we can now have an even greater impact on driving early-stage company development in key tech sectors thanks to our ability to fund bigger deals and meaningfully participate in follow-on investments. Our LPs believe this too, as they committed 70 percent of our targeted funds within just 90 days, establishing great momentum to launch our next platform."

"A key to our firm's ongoing success, despite fluctuations in the industry, is our unique approach," says Blaine Hobson, Diamond's partner for two decades. Rather than investing in a large number of companies, Whitecap III has created a platform that puts greater capital into each selected company and works closely with them through all stages of their development. "Given the significant potential we are seeing in our key market sectors, Whitecap III represents the next step in a logical industry evolution that will allow us to add scale and ensure long-term sustainability for high growth, early stage companies predominantly in Canada."

The Whitecap Venture Partners leadership team brings a wealth of experience to the new fund, and includes Carey Diamond, Blaine Hobson, and Joe Catalfamo, Partners with a proven history of helping to build world class venture backed companies together. As one of the pioneers in venture investing in Canada, for 25 years Carey Diamond has been the CEO of Whitecastle Investments Limited, the family owned investment company behind Whitecap I and Whitecap II. Blaine Hobson - a partner in Whitecap I and Whitecap II - is an experienced operator, manager, and investor with more than 30 years of experience successfully starting, building, and running companies. Joe Catalfamo has been a driving force in the Canadian venture capital landscape for 25 years, including his role as a co-founder of Whitecap I and more than 10 years (and continuing) as co-founder and co-managing partner of Summerhill Venture Partners. The investment team includes both Shayn Diamond and Russell Samuels as principals.

The Fund has assembled an impressive advisory board of exceptional entrepreneurs and business leaders from the formative ventures Whitecap's partners have previously backed, including Marcel LeBrun, former co-founder and CEO of Radian6; Jason Smith, CEO of Real Matters; Wael Mohamed, COO and director of Trend Micro and former co-founder and CEO of Third Brigade; Bob Courteau, CEO of Altus Group and former president, North America, of SAP AG.

"The team members behind Whitecap III are well-respected pioneers in the venture capital ecosystem, were among the first to build a direct investment strategy in Canada, and have domain expertise that is second to none," says Rick Nathan, managing director at Kensington Venture Fund. "Kensington has worked with the Whitecap team on various projects for more than 15 years, and we have seen first-hand their strong and proven track record of successful investments. Opening their doors to outside investors creates a unique and exciting addition to the venture capital ecosystem, and gives a firm like ours an opportunity to engage in a fund with a longstanding tenure in this industry and a strong family history behind it."

About Whitecap Venture Partners

Whitecap Venture Partners is a diversified early stage venture capital fund investing in high growth companies across three verticals: Information and Communications Technology (ICT), Med Tech and Food Tech. Its team of operators and investment professionals partner with entrepreneurs in verticals where they have deep domain expertise and can bring significant operational and strategic value to companies. Whitecap Venture Partners began as the Venture Capital arm of Whitecastle Investments Ltd., a family office operating in Toronto. Additional information is available at www.whitecapvp.com.