We invest purposefully

ABOUT> Investment Principles

UNEARTH THE BEST PERFORMING FUNDS

Teralys’ objective is to support entrepreneurs' needs by providing venture capital funds with value-add capital to efficiently sustain the development of innovative companies.

As the largest innovation-focused fund of funds in Canada, Teralys Capital seeks the best performing venture capital funds able to play an active role in the development of our local landscape and support our fast growing technology companies.

We invest primarily in Canadian venture capital or growth-oriented funds that support innovative, high growth technology companies in the information technology, life sciences, cleantech or industrial innovation sectors.

These private funds are optimally sized to execute their investment strategy. They are structured to best align the interests of investors, general partners and stakeholders. They work with other private or international co-investors, either directly as investors in their own fund or as co-investors in their portfolio companies. Finally, these private funds regroup sector-specific domain expertise, operational experience, relationships with relevant industrial partners and an international network in order to generate superior financial returns.

OUR SEVEN INVESTMENT PILLARS

In order to maximize our financial returns, while building a sustainable and robust venture ecosystem, each fund selected by Teralys Capital must follow seven fundamental pillars:

Optimal fund size to execute strategy
and provide follow-on financing

Fund managers with strong operational and entrepreneurial expertise

Strong alignment of interests between investors and managers

Global network of international partners and investors

Access to corporate and strategic sponsors

Proven track record and strong financial returns

Long-term commitment towards diversity

KEY ALLOCATION METRICS

Teralys Capital’s investment strategy is to build a balanced ecosystem while maximizing financial return for investors. This is achieved by investing in the various diversified portfolios of venture capital managers. Based on Teralys' decade-long experience in venture capital investment and management, and considering the current market conditions in Canada, key allocation metrics to consider are:

IT Allocation

Closely matching the investment activities observed in Canada for each key sector meeting our financial return targets: information technologies (55%); life sciences (35%); clean or industrial innovations (10%).

Early-Stage Allocation

Balanced approach to provide capital at each stage of development and growth of underlying companies: seed and startup funds targeting early stage companies (65%); later stage funds dedicated to support the growth, expansion and buyout of technology companies (35%).

Canadian Allocation

Selection of venture capital funds based in Canada or internationally demonstrating a strong ambition, ability and experience to support the best innovating Canadian startups through their unique expertise and a value-add network.

Co-investment Allocation

Investment strategy predominantly allocated to fund of funds, but complemented by co-investments directly in Canadian companies with fund partners thanks to our unique monitoring of underlying portfolio companies and our direct investment experience with in-house sector specialists.