Manitoba First Fund, Emend Vision Fund prep $10M for local startups

A Vancouver-based venture capital fund has slated $10 million for Manitoba startups.

Half the money — $5 million — comes from the Manitoba First Fund, a provincially-funded entity created to spur investment.

“We definitely look at Manitoba as an area of significant opportunity,” said Todd Tessier, chief financial officer of the Emend Vision Fund.

He and partners have been scouting Western Canada for startups — largely those in agriculture and advanced manufacturing.

Emend has fundraised over the past 2 1/2 years. It completed its first close, at $25 million, last spring.

It recently inked a deal with the Manitoba First Fund: MFF tabbed $5 million for pre-seed to Series A firms, and Emend will match the money.

The B.C. early-stage venture capital fund is eyeing two to three Manitoba companies. It could have news within the next quarter, Tessier said. He hinted at specialized agriculture food processing and farming software businesses.

Emend might provide “smaller investment cheques” starting at $500,000. It aims to connect firms with staff to help them grow, Tessier said.

“It’s basically up to the founders, whether they trust us to … find people for their company,” he said, adding Emend won’t take controlling interest of a company.

He was previously an executive at Recon Instruments, a smart eyewear company Intel acquired for an undisclosed amount.

Emend hasn’t yet invested in businesses, but it’s on the cusp of announcing two deals: one in Alberta and another in Saskatchewan. It’s choosing to focus on agriculture technology because of a growing population and a need for environmental sustainability, Tessier said.

“There’s a lot of money to be made in areas like digital media and online consumption,” he said. “We chose this industry because it’s meaningful.”

Emend is also prioritizing companies innovating oil and gas, mining, clean water, industrial artificial intelligence, transportation and infrastructure sectors.

An alignment between “critical sectors” in Manitoba and Emend is among the reasons the Manitoba First Fund is funnelling money into the partnership, said chief executive Ken Ross.

“They have a strong, successful track record, and their experience can help whoever they invest in beyond just their capital,” he said.

The then-Progressive Conservative government launched the $100 million Manitoba First Fund in 2022. Since then, $80 million has been committed to various partnerships. The latter $20 million will likely be claimed by the end of next year, Ross said.

Roughly $10 million from the Manitoba fund has been dispersed between six companies, including VAW Systems and Northway Aviation. Partner investors have placed some $38 million in those companies: “We’re actually getting about a three-to-one leverage, on average, for our money,” Ross said.

Northway Aviation acquired SkyNorth Air in January. It’s too early to tell how an investment in VAW Systems will unfold, Ross said.

The money spent on VAW Systems between the Manitoba First Fund and partner PFM Capital wasn’t disclosed in May, when the duo announced they’d invest.

gabrielle.piche@winnipegfreepress.com