Diagram Ventures signals first close on $60 million growth fund

Montreal company creator Diagram Ventures is announcing the the first close of its $60 million ‘Opportunity Fund.’

Diagram is a firm that conceives and launches tech companies in financial services, insurance, and healthcare.

The new fund was raised from Canadian investors, and will allow Diagram to support its portfolio companies by re-investing through the growth phase and beyond.

“The Opportunity Fund sets us up to continue delivering on our unique investment approach to deploy more capital into fewer, concentrated ideas that we foster and de-risk,” said CEO Francois Lafortune. “Diagram’s unique model is fundamental to our significant traction in just five short years.”

Diagram says the Opportunity Fund “will further generate economic wealth and prosperity in Canada,” because eight of Diagram’s 11 portfolio companies are headquartered in Canada, with seven headquartered in Quebec.

Diagram’s previous funds helped its portfolio companies

It’s not the first time Diagram has been in the news of late. Just last week, Diagram’s first portfolio company, Dialogue, unveiled its $100 million initial public offering on the Toronto Stock Exchange. Dialogue is a telemedicine company that was founded in 2016.

The company creator previously raised a pair of seed stage funds. Diagram says those funds currently carry over $1 billion in shareholder value.

Moreover, Diagram-backed companies have created over 600 full-time jobs across Montreal, Toronto, San Francisco and New York thus far.

In 2020 the firm launched five new ventures including Wingo, Novisto, Baselane, ClearEstate, and Synctera. Its goal is to launch five new companies in 2021 and beyond.

Since 2016, Diagram has raised over $145M and launched 11 new companies across North America.

RELATED: Silicon Valley’s loss during COVID turns into Diagram’s gain

Star-studded exec team

Prior to founding Diagram, Lafortune co-led the Canadian Business Technology practice at McKinsey & Company.

Meanwhile, Diagram’s cofounder and chairman is Paul Desmarais III of the powerful Desmarais family. Desmairais III is also the Executive Chairman of Portag3 Ventures, and also serves as Senior Vice-President of Power Corporation and Power Financial.

Dan Robichaud, who previously founded and sold PasswordBox to Intel Security in 2014, is a managing partner at Diagram.

And Hamnett Hill, a partner at Diagram Ventures, cofounded several high-profile companies in and around Montreal. He previously cofounded TotalNet, one of Canada’s largest early Internet Service Providers (ISP); Zero-Knowledge Systems a high-profile pioneer in online privacy and security and Radialpoint – North America and Europe’s largest Telco & Cableco consumer SaaS provider, and most recently Smooch.io the leading B2C omnichannel messaging software provider.

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