The Caisse de dépôt et placement du Québec, the Solidarity Fund QFL and the Québec government have confirmed the creation of the Teralys Capital Fund, which w
The Caisse de dépôt et placement du Québec, the Solidarity Fund QFL and the Québec government have confirmed the creation of the Teralys Capital Fund, which will finance private venture capital funds that invest in technology companies.
The creation of the Teralys Capital Fund is an initiative of the Caisse de dépôt et placement du Québec and the Solidarity Fund QFL, which are each contributing CAD250m. The Québec government is contributing CAD200m through Investissement Québec.
The fund will also solicit other institutional and private investors to raise an additional CAD125m, for a total objective of CAD825m.
"For the Caisse, this announcement is an important stage of the venture capital strategy whose first phase was put in place in 2004," says Michael Sabia, president and chief executive officer of the Caisse de dépôt et placement du Québec (pictured). "The creation of this fund of funds is a new initiative that will enable us to use a common strategy to enhance the impact of our efforts and attract private investors through sound diversification. By confirming our involvement in this new phase, we are completing an initiative begun more than a year ago. I am especially pleased to announce it today, in a context in which Québec’s companies have an even greater need for access to capital. This initiative reflects the Caisse’s commitment to investing in innovative technology companies.’
Yvon Bolduc, president and chief executive officer of the Solidarity Fund QFL, says: "It is important for the Solidarity Fund to develop this sector of activity, and that is why we have invested almost CAD2bn in it over the past 25 years, in addition to having worked with the Caisse and the government to put in place a new business strategy in 2004. The strategy not only attracts foreign capital to Québec, but also enables Québec companies to develop business relations with foreign companies. Our financial ecosystem has all the attributes to anchor Québec in the components of the knowledge economy: from education to R&D, product development and marketing. With the creation of the Teralys Capital Fund, we are starting the second phase of the strategy, and this stage will be instrumental in ensuring the success of our entrepreneurs. Our investment in this new fund is in line with our determination to support Québec companies at all phases of their development. We are proud to continue our commitment with the same major economic players.’
Québec has more than 9,000 technology companies with almost 220,000 employees and annual revenues of CAD26.5bn. The fund is one of the mobilizing economic measures set out in the 2009-2010 budget announced by the Québec government on 19 March.
The partners have selected Jacques Bernier, a recognised Québec venture capital manager, to oversee the fund. Until recently he was strategic adviser to the Solidarity Fund QFL, which he joined in 2004 as senior vice-president, ICT. Bernier has in-depth knowledge of the venture capital sector and played a key role in the development and implementation of a new approach to venture capital in Québec. As an entrepreneur and an institutional investor specializing in technology innovation in Québec, Bernier has been directly involved in the startup of a dozen technology companies.
