VenGrowth Capital Partners is announcing the first closing of its fifth fund, “VenGrowth V”. Over $55 million in funds were committed from leading Canadian and American institutional investors, says the company.

Despite dampened market conditions, VenGrowth V elicited a strong response from the investment community. One of only three early-stage technology funds able to successfully close this year, the fund brings together a select roster of investors. Business Development Bank of Canada (BDC) and Scotiabank are the fund’s lead investors. Other investors include VIA Rail’s Pension Fund, Credit Suisse First Boston, CIBC, RBC Capital Markets and The Toronto-Dominion Bank.

VenGrowth V will capitalize on earlier stage investments in the communications, networking, Internet infrastructure, semiconductor and software sectors. Investment allocation is slated to reach beyond Ontario borders – VenGrowth’s traditional geographic focus area – to other high-growth areas within Canada and the U.S.

The 16-person investment team will be active investors with board representation while leveraging the broader network, resources and intellectual capital of VenGrowth Capital Partners.

VenGrowth V is the third institutional fund, and fifth venture fund raised by VenGrowth Capital Partners since its inception in 1982. VenGrowth’s investment team possesses over 160 years of investment and
operational experience, and has been instrumental in the growth and successful public offerings or sale of many world-leading technology firms, such as: Cambrian Systems, Q9 Networks Inc., Tundra Semiconductor, Genesis Microchip and LinkAge Software. TD Securities assisted VenGrowth in the fund-raising process.