Insider Brief:
- Active Impact Investments raises C$110 million to support early-stage startups in the climate tech industry in Canada.
- The investment firm has more than doubled its assets under management.
- The investment fund believes that Canada is a top destination for climate tech development.
Vancouver fund Active Impact Investments has raised C$110 million for its third early-stage climate technology fund, BetaKit reported May 8.
Investors include Northleaf Capital Partners and Fondaction, which had invested in Active Impact Investments before.
The fund had been trying to close C$120 million as of early this year, according to BetaKit. Active Impact had raised more than C$70 million for the new fund back in November 2023.
Active Impact has more than doubled its assets under management, founder and managing partner Mike Winterfield said.
The firm had an option to continue fundraising for another six months to meet the C$120 million target, but decided to move ahead with the fund with C$110 million.
Active Impact will continue to target startups developing tech solutions for the circular economy, clean energy, carbon solutions, and infrastructure, as well as sustainable food and water.
The investment firm has invested in 39 North American companies, of which it has exited seven in acquisitions.
The third fund will largely provide funding in the C$1 million to C$4 million range, and will lead funding rounds and take board seats on startup companies.
Companies which Active Impacts has invested in include Jetson, Skyward, and ThinkLabs AI.
The investment fund sees Canada as a bright spot for climate tech development.
“We see Canada quickly emerging as a top destination for building climate tech companies with world-class affordable talent, strong public support, effective policies like IRAP [the Industrial Research Assistance Program] and SR&ED [the Scientific Research and Experimental Development], and globally respected and stable leadership,” Winterfield said.
