The past few weeks have seen some impressive fundraising activity among noteworthy Canadian technology companies. This is great news not just for the recipients of this new capital but for Canada’s tech ecosystem as well. These transactions include:
Zafin, which is based in Vancouver and makes relationship banking software, raised $15 million in growth equity capital from Kayne Partners, bringing its total funding to date to $20 million. This capital will allow the company to expand its line of software products and to increase its international sales and marketing efforts.
Scribble, the Toronto-based content engagement and publishing platform provider, raised $12 million in Series C venture capital funding from existing investors Rogers Venture Partners, Summerhill Venture Partners, Georgian Partners, and Export Development Canada as well as new investor Waterloo Innovation Network. This capital will allow the company to open overseas offices as well as to make further acquisitions following its purchase of CoveritLive earlier this year. This investment brings Scribble’s total capital raised to date to almost $24 million.
REGEN Energy, the Toronto-based provider of electricity demand management systems, raised $12 million in Series B venture capital from existing investors BDC Capital and NGEN Partners as well as new investors EnerTech Capital, Export Development Canada, and an American utility company. This capital will help the company expand the commercialization of its SWARM Energy Management system that helps commercial and industrial users to significantly reduce their electricity consumption. The company has now raised a total of $25 million in capital through five rounds of fundraising.
Hubub, a social community and content platform that is also based in Toronto, raised $5 million in equity capital from Bell Media. The company’s platform is currently in beta and a full release is expected sometime this month. It has now raised a total of $14 million in capital.
These companies have managed to attract significant amounts of capital that will hopefully allow them to commercialize their software and hardware platforms well beyond the Canadian market. They join other Canadian companies that have recently raised later stage rounds of equity capital funding in the eight-figure range from existing investors here in Canada as well as new investors from the US and overseas.
This is a very welcome development in the Canadian tech landscape. Where previously companies such as these would hit a funding wall and have to be acquired by large foreign buyers at an early stage or else become irrelevant because they lacked the capital required to expand their sales and marketing beyond our borders, now they have a chance to become successful, internationally recognized technology leaders, acquirers of emerging competitors, and much larger acquisition targets themselves or candidates for substantial initial offerings in the public markets.
They are also increasing their headcounts, purchasing new equipment, and occupying larger office and industrial spaces. This is certainly welcome news, and not just for those of us who work in or provide services to the Canadian technology community.