iNovia Announces their New Fund III

by NextMontreal on December 16, 2011

iNovia Capital logoToday, iNovia Capital is announcing the first close of their new, $110 million fund (Fund III).

Fund III will be focused on investments in the digital media, Internet and communications sectors. iNovia got out of healthcare and life sciences investing back in August.

iNovia notes that the fund size remains small – intentionally – so that they can keep intersets properly aligned with entrepreneurs and benefit from sub-$100 million outcomes (which represent the bulk of M&A) while still having enough resources to help finance companies that become large category leaders.

In the announcement, iNovia provides a breakdown on their current portfolio and past investments:

  • 30+ portfolio companies generating over $300M in aggregate revenue
  • 2 of our portfolio companies will do over $100M in revenue this year, with several more on a revenue run rate of over $10M, plus a number of earlier stage investments that are growing at extraordinary rates.
  • 600 full-time employees across all of our portfolio companies
  • 2 exits in past year, OggiFinogi and Babble, providing attractive returns
  • 1 of the most valuable Internet startups in the world – Collective
  • $37M funding in Beyond The Rack that reaffirmed our commitment to eCommerce (further building on our investment in Well.ca)
  • $23M financing from a world class syndicate of investors in Fixmo (a company we seeded)
  • 2 gaming companies continued their rapid growth, with Gamerizon (16 million downloads) raising $5M and Woozworld (16 millions virtual spaces created) raising $6M.
  • 1st Y Combinator alumnus company, Vidyard – an investment that also fits perfectly alongside AppDirect in our belief around the consumerization of enterprise applications.
  • 7 co-investments with Greycroft Partners, 3 each with Rho Canada, Panorama Capital and Metamorphic Ventures and 2 with Accel Partners.
  • 6 investments with seed funds Real Ventures and Extreme VP and helping to launch Growlab with amazing partners and co-investors.

Here’s the remainder of their announcement:

In the same vein as what we tell our companies, we don’t see this funding announcement as an affirmation of our past success, but rather an opportunity to prove what we are really capable of accomplishing. Like any growing company, we are improving over time. There are natural “flywheel” effects in venture capital, which we are leveraging as our network keeps getting stronger. We have a growing number of successful existing investments. Failures continue to teach us. We have come along way since 2002, and look forward to working with a new group of entrepreneurs in iNovia III to see what we can accomplish next. In the meantime, we want to thank the entrepreneurs who have chosen to work with us and our investors that believe in our team and vision.

It’s great to see this get done, as iNovia remains one of the key Canadian venture players. Now we’ll see how quickly they make new funding announcements from Fund III.