Representatives from more than 30 Canada-based organisations have joined a $50m fund dubbed Scale Up Ventures that will look to leverage corporate assistance to invest in startups.
Executives from corporates including automotive parts manufacturer Magna International, telecommunications firms Bell and Rogers Communications, steel maker Corus, communications technology company Aastra Technologies and industrial product supplier GE Canada are among the members of Scale Up’s leadership council.
Scale Up is being launched with up to $25m from the government of Canadian province Ontario which will be matched by private investors. Although the identity of the private investors have not been disclosed, Don Walker, CEO of Magna, hinted that the company may have been among the limited partners.
“As a global leader in the automotive parts business, Magna is always developing and searching for the best product and manufacturing process innovations,” Walker said.
“We are pleased to participate in this very interesting initiative which we expect to help our company grow as well as assist start-up companies in Ontario become a more innovative, global competitive location in which to do business.”
Scale Up could not be reached for comment on the identity of the fund’s limited partners.
The fund will invest in Ontario-based companies, providing mentorship from the leadership council, which will be chaired by Nadir Mohamed, formerly the CEO Rogers Communications. The council will also provide access to their organisations.
Mohamed said: “Leadership Council mentors will open up our organisations to the companies we support, and will look for ways to use their technologies to help run our businesses.
“This will not only help create the next generation of Canadian successes, but also help Canada remain competitive through innovation and access to emerging technologies.”
Scale Up is targeting high-growth technology startups at pre-series A stage and will begin making investments later this year.
– Additional reporting by Thierry Heles