OMERS has announced the launch of its new venture capital arm, OMERS Ventures.
An initiative of OMERS Strategic Investments (OSI), OMERS Ventures will provide financing for promising companies throughout the investment lifecycle.
“We believe our program for investing in venture capital will result in a win-win scenario,” says Jacques Demers, president and CEO of OSI. “Strong long-term investments in this asset class will help us continue to deliver on the pension promise for our members, while also encouraging the development of a vibrant and successful Canadian knowledge economy.”
Canada’s venture capital industry has suffered from a lack of resources and funding since the technology boom and bust more than a decade ago. This means many promising companies are unable to reach the next level of success, says John Ruffolo, CEO of OMERS Ventures and senior vice-president and head of knowledge investing at OSI.
OMERS Ventures will have a unique role in its industry, as both an institutional angel investor and a later-stage investor. With its ability to fund companies at any stage of development, it will have a great deal of flexibility when making investments, Ruffolo added.
As a lifecycle investor, OMERS Ventures investments could range from an initial seed round investment ($500,000 to $2 million) to a larger growth capital round (up to $30 million).
Sectors of interest will include technology, media, telecommunications, clean technology and life sciences, with a focus on North America.