InBC Announces First Three Venture Fund Investments: Evok Innovations, Raven Capital, Yaletown Partners

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InBC supports three venture capital funds focused on climate change, reconciliation and innovation.

InBC Investment Corp. made its first investments to date, backing a trio of Vancouver-based venture funds focused on entrepreneurs who lead action against climate change, advance reconciliation efforts and innovate for the future.

InBC invested in Evok Innovations Fund II, Raven Capital Fund II and Yaletowns Innovation Growth Fund II.

Evok Innovations, Raven Indigenous Capital Partners and Yaletown Partners each receive between $5 million CAD and $10 million from Crown British Columbia (BC) firm for their latest venture funds. InBC has declined to share how much capital it has invested in each individual fund.

Each of these funds is in line with one of those goals to impact really strongly. -Leah Nguyen, InBC

In an interview with BetaKit, InBC chief investment officer Leah Nguyen noted that InBC evaluated potential venture fund investments based on four key criteria. These factors included each fund’s connection to BC, alignment with InBC’s impact objectives, whether they are adopting and leveraging Environmental, Social and Governance (ESG) and Diversity, Equity and Inclusion (DEI) best practices, and the potential for financial return.

Our impact goals are driving climate action, innovating for the future, promoting reconciliation and elevating inclusive communities, Nguyen said. And so each of these funds aligns with one of those really strongly impact goals Evok to lead climate action, Raven with advancing reconciliation, and Yaletown with innovation for the future.

InBC, a CAD 500 million strategic investment fund created in 2021 by the government of BC, is an initiative under StrongerBC, BC’s Economic Recovery Plan and Budget 2021. InBC recently unveiled its investment strategy for the fund in October.

The Crown company has set some solid goals, including investing $75 million to $125 million in funds focused on pre-seed and seed stage startups. InBC’s investment in early-stage companies will include $150 million to $225 million in Series A and B funding through joint investment funds, with the option for InBC to invest directly in the companies.

When it comes to later-stage companies, Crown Corporation is more focused on direct investments, but said it will also include some fund-of-funds investments as it seeks to support entrepreneurs and other investors moving forward with its impact goals, which are in line with the Priorities of BC governments.

Nguyen noted that InBC does not have a fixed allocation between venture fund investments and direct investments, adding that the Crown firm expects to assess market demand and adjust accordingly. That said, Nguyen said InBC is already seeing plenty of inbound fund opportunities.

RELATED: Evok Innovations Targets Cleantech Investments With First Closing of $300 Million CAD Fund II

Evok invests in decarbonization verticals, including the use and storage of carbon capture, low-carbon fuels, clean energy, and advanced materials and grid innovations. In October, the fund announced the first closing of its $300 million USD Fund II, with $150 million of committed capital.

Evoks mission is to protect the environment and strengthen the economy. The company’s $100 million fund has made 16 investments to date in carbon capture, electrification, hydrogen and digital technology.

“We are thrilled to welcome InBC as a new partner in Evok’s second fund,” said Evok partner Marty Reed. This partnership will not only support growing businesses in British Columbia, but will also help the province achieve its goals outlined in the CleanBC Roadmap.”

In its 2021 budget, the province announced $506 million in new investments to support CleanBC, a BC initiative to fight climate change. That funding included $269 million in new funding for clean transportation, energy-efficient buildings and other cleantech initiatives.

RELATED: Indigenous venture firm Raven Capital eyes U.S. market as it secures $46 million for second fund

Vancouver-based Raven Capital, the only indigenously-led and owned venture capital brokerage in North America, closed an initial CAD$46 million for Fund II in September, toward its eventual goal of $75 million .

Founded in 2017, Raven Capital invests in early-stage, innovative, scalable and purpose-driven Indigenous businesses through an Indigenous impact framework. To date Raven Capital has made 20 investments in 11 companies through its first fund, amassing a portfolio that includes Animikii, Plato Testing, Virtual Gurus, Social Awareness Group, Satya Organic, Ginew and Salish Soils.

InBC’s investment in Raven is an ongoing economic reconciliation and an implementation of Article 3 of the United Nations Declaration on the Rights of Indigenous Peoples, said Paul Lacerte, managing partner and chief impact officer of Raven Capital.

Yaletown Partners’ fourth fund to date is its second Innovation Growth Fund, IGF II. Yaletown secured that fund’s first close in 2021, raising $130 million to support Canadian software and AI startups that reduce emissions. The investment firm hopes to raise a total of $200 million for IGF II.

As Hans Knapp, co-founder and partner at Yaletown Partners says: Having the support of a partner who shares our dedication to driving both positive impact and financial returns, particularly in our home jurisdiction of British Columbia, is critical. for our continued success.

InBC expects to launch its direct investment program in spring 2023.

Featured image courtesy of Unsplash. Photo by Alejandro Luengo.

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