TandemLaunch, a Montreal-based company creator and incubator, has announced the initial close of its third fund at $12 million.
BDC Capital contributed $4 million to the new fund, while more than 30 private investors contributed, including Lune Rouge Innovation, Speed of Trust Ventures, YUL Ventures, Nathalie Marcoux, Jean-Francois Grenon and more. The final closing is expected to occur at the end of the summer of 2016.
— BDC Capital (@BDC_Capital) May 24, 2016
TandemLaunch scouts, accelerates and commercializes early-stage technologies from the world’s top universities in close partnership with major consumer electronic brands. A longtime member of the Montreal technology community, TandemLaunch says it lives in the overlap of innovation, industry and investment, removing the barriers that block great university research and development from hitting the shelves.
It’s CEO is Helge Seetzen, an award-winning technologist, entrepreneur, and a recognized global authority on technology transfer and display technologies. Companies get $500,000 in seed money, while TandemLaunch companies raise, on average, $3.4 million.
“By bringing together the capital, network and depth of experience of an exceptional group of private investors with such an important player in the Canadian venture capital ecosystem, we now have all the resources necessary to support the next generation of innovative entrepreneurs and technologists,” said Seetzen.
The new capital will allow TandemLaunch to initiate another dozen new ventures by identifying technologies with promising market opportunities, attracting talent from around the world and injecting the seed money. Portfolio companies will also take advantage of TandemLaunch’s in-house staff, facilities, mentors and industry partners.
The objective of the fund is to “create companies that develop strong intellectual property with the potential for global commercialization.”
The funding from BDC represents a strong relationship between the two parties. It was BDC Capital who played the role of lead investor in 2003’s TandemLaunch Ventures I, which closed at $9.8 million in July 2013.
“TandemLaunch’s incubation model is unique not only in Canada but internationally,” said BDC’s Charles Morand. “It’s been effective in sourcing promising technologies from some of the world’s top research universities and turning them into actual Canadian companies. We know that getting seed funding can be a challenge. TLVII will provide much needed early-stage support to a whole new crop of Canadian startups.”