Conexus Venture Capital Unveils Second $30 Million Fund to Support Saskatchewan Tech Startups

Conexus Venture Capital Launches $30 Million Fund with $15 Million First Close from Conexus Credit Union to Support Saskatchewan Tech Startups.

Building on the success of its first fund and the foundation established by Conexus Credit Union's incubator Cultivator, Saskatchewan's Conexus Venture Capital (CVC) has unveiled its second $30 million CAD venture capital fund. With new leadership at the helm, the Regina-based VC firm is poised to further its mission of investing in early-stage technology startups based in Saskatchewan through Fund II.

CVC managing director Jordan McFarlen shared in an exclusive interview with BetaKit, "We've demonstrated that world-class companies can be established anywhere, and we have exceptional founders, talent, and scalable businesses right here in Saskatchewan."

McFarlen, who spent six years at the helm of Cultivator, made the transition to CVC last fall. He unveiled Fund II during a presentation at Saskatoon's Uniting The Prairies conference. The launch of this fund coincides with a challenging market landscape, following a year in which Saskatchewan's VC funding declined to $37 million, as reported by the Canadian Venture Capital and Private Equity Association (CVCA).

McFarlen expressed, "We believe that now is the opportune moment for us to strengthen our dedication and confidence in this ecosystem, in the companies, and the potential that thrives here." He conveyed optimism that CVC's Fund II can contribute to boosting the VC funding landscape in Saskatchewan.

CVC's initial fund was established in collaboration with Cultivator in 2019 and received support from nine institutional limited partners, including six Saskatchewan credit unions. This fund facilitated a total of 17 investments in startups based in the Prairies, with 13 of them located in Saskatchewan. Notably, the portfolio includes two of the province's most successful tech startups, 7shifts and Coconut Software, contributing significantly to the advancement of the Saskatchewan tech ecosystem.

CVC has achieved notable success in its investment endeavors, having exited two companies, Curatio and Thinkific, and participated in secondary transactions with two additional companies. The fund, which concluded its new investment activities in early 2023, has garnered recognition for its performance, positioning itself within the top quartile of 2019 vintage funds across North America.

This achievement underscores CVC's strategic approach and the strength of its investment portfolio, reflecting positively on its ability to identify and support high-potential ventures in the region. The successful exits and strong performance of the fund highlight CVC's commitment to fostering growth and innovation within the Saskatchewan and broader North American tech ecosystem.

Katherine Regnier, the founder and CEO of Coconut Software, expressed her perspective on the evolving landscape of Saskatchewan as a hub for venture-backable companies. She highlighted the significant role played by CVC in reshaping the perception of the province, stating, "I think Saskatchewan is no longer becoming a fly-over province when we look to venture-backable companies, and [CVC] has had a large part in making that happen."

Regnier emphasized that CVC's efforts go beyond merely shining a spotlight on Prairie companies within the local ecosystem; they are actively working to elevate the presence of these companies on a broader scale, extending their reach beyond provincial borders. This recognition underscores the impact of CVC's initiatives in fostering growth and visibility for Saskatchewan-based startups, contributing to the region's emergence as a noteworthy player in the venture capital landscape.