Canadian FIs launch $75 million FinTech fund
Written by Anthony Strzalek
Québec’s La Caisse and Desjardins Group have announced the creation of a $75 million investment fund dedicated to FinTech and AI.
Established in Montréal, the venture capital fund's purpose is to support the growth and development of new FinTech companies in Québec and Canada.
This fund, created under la Caisse's initiative and built in partnership with Desjardins, will operate independently and is expected to have a maximum size of $75 million. Its two sponsors will invest equal amounts totalling $50 million. Other institutional investors have already expressed interest in joining before the first closing, which is expected by the end of the year.
This fund, which has yet to be named by its sponsors, will make share capital investments. It will target companies that develop technology affecting investments, payments, client acquisition and retention, data analysis, deposits and loans, security or insurance.
Pierre Miron, chief operations and IT officer at la Caisse, said: “With its high concentration of talent in information technology and the robustness of its financial industry, all the pieces are in place for Québec to see the emergence of a first-rate FinTech industry.
“We strongly believe that this new fund will foster the development of new technology solutions that will significantly improve business processes and operational efficiency.”
Guy Cormier, president and chief executive officer of Desjardins Group, added: “This new fund is very timely. Not even two weeks ago, the Brookfield Institute ranked Montréal in first place in Canada for its concentration of jobs in the high-tech sector. This support for FinTech will enable our financial sector companies to be world-class pioneers, particularly with regard to customer experience and competitiveness with the giants that are moving into our industry.”