Scoop: Active Impact Investments secures $5.88M from EDC, caps $60M climate tech fund
The contribution makes Export Development Canada (EDC) the largest and last limited partner in Active Impact's latest fund.
Active Impact Investments added Export Development Canada (EDC) as a limited partner (LP) for its second climate tech fund, Fund II. The firm originally announced in July an oversubscribed fund of $54 million with a group of LPs that included Fondaction Pension Fund, Vancity, the University of Victoria’s working capital fund, Hamilton Community Foundation and clients of Genus Capital Management.
EDC is chipping in $5.88 million, making it the largest and final LP in Fund II. Active Impact had turned down other investment offers in recent months because the firm was over their targeted amount; however, the firm decided to accept EDC’s money for strategic reasons.
“Fund II is now $60M, the maximum allowed under our partnership agreement with no ability to accept additional investment,” notes a bulletin from Active Impact.
This is a continuation, not the genesis of, Active Impact’s relationship with EDC. “Our investment relationship with EDC began with the COVID matching program where we saw their team in action,” notes the bulletin. “They worked fast, brought immediate value and proved to be great partners every step of the way. In fact, to date EDC is a co-investor in five of our portfolio companies across our two funds so the overlap in startup support is clear to us.”
The fund, and its size, make Active Impact one of the fastest-growing environmental impact venture capital companies in Canada. The firm went from zero to approximately $70 million in assets under management in less than four years. With the new fund, the firm said it plans to add at least 15 companies to its portfolio.
The firm has already made a number of Fund II investments in companies including Encycle and Railvision.
Mike Winterfield and Tom Boddez are the firm's partners, both of whom left lucrative executive careers a few years ago so they could focus on solving the world's most pressing environmental challenges.
Active Impact is a Certified B Corp and provides funds and talent to accelerate the growth of early-stage climate tech companies with $200K to $3 million in revenue and significant growth potential. The firm is looking to invest in start-ups that have developed technology that meaningfully reduces greenhouse gas (GHG) emissions and improves society’s sustainability in the areas of: circular and shared economy, clean energy and transportation, smart infrastructure, and sustainable food and water.
The firm’s larger portfolio includes BC-based companies like Audette, ChopValue, Clir Renewables, Keela and Social Nature.