Yaletown Partners Raises $100m for Third Tech VC Fund

Yaletown Partners has raised $100m for its third venture capital fund focused on tech investments. The firm aims to invest in early-stage startups across North America and Europe, with a focus on artificial intelligence, cybersecurity, and cloud computing. Yaletown's previous funds have invested in companies such as Kasten Technologies and DigitalOcean.

Yaletown Partners, a prominent technology investment firm, has successfully closed its latest venture capital fund, the Innovation Growth Fund III (IGF III), at $100 million. This marks the first close of the fund, which is the third and largest in the firm's franchise. The total active funds under Yaletown's management now stand at approximately $600 million [1].

IGF III continues Yaletown's Intelligent Industry thesis, focusing on investing in the enablement layer of digital infrastructure technologies, including advanced analytics, edge computing, networking, and physical AI. These technologies are crucial for the digital transformation of various sectors such as energy, manufacturing, logistics, agriculture, and transportation. The fund aims to support companies driving productivity, resiliency, and sustainability in these strategic industries [1].

The first close of IGF III brought together a diverse coalition of returning and new institutional investors, including pension funds, financial institutions, government investment corporations, Indigenous groups, impact investors, and family offices. Notable investors include BMO Capital Partners, Export Development Canada (EDC), Farm Credit Canada, and InBC Investment Corp. [1].

"We believe Yaletown's approach to Intelligent Industry investing presents a compelling opportunity to generate strong returns while supporting Canada's industrial transformation," said Hanz Gin, Managing Director at BMO Capital Partners. "Yaletown's track record of identifying and scaling companies at the forefront of industrial and technological transformation aligns with our commitment to backing high-performing businesses that are shaping the future of the Canadian economy" [1].

Lissa Bjerkelund, Vice-President, Investments and Mid-Market Lending at EDC, added, "Yaletown's continued focus on scaling Canadian technology companies with strong export potential—particularly in sectors like artificial intelligence, digital transformation, and climate-resilient technologies—aligns closely with EDC's focus on helping mid-market Canadian firms grow and compete globally" [1].

Adam Smalley, Managing Director at Farm Credit Canada Capital, expressed excitement about the potential for IGF III to drive innovation and productivity in agriculture. "IGF III is the kind of investment platform that generates ongoing innovation and productivity in agriculture, helping Canadian farmers and food processors continue delivering high-quality products to feed families across Canada and around the world" [1].

Heather Tanaka, Investment Principal at InBC, highlighted the importance of IGF III in advancing digital transformation and building future-ready industries in British Columbia. "We are excited for IGF III to continue this momentum scaling businesses driving innovation and economic growth in B.C." [1].

Yaletown's proprietary Responsible Investment and Insights platforms remain integral to its differentiated approach. These platforms support portfolio companies and provide limited partners with access to market intelligence, curated connections, and real-time insights into emerging technologies reshaping the real economy. With IGF III, the firm reaffirms its conviction that digital transformation is the most scalable lever for accelerating industrial competitiveness [1].

Salil Munjal, Managing General Partner at Yaletown, commented on the successful closure of the fund amidst challenging market conditions. "We brought IGF III together in record time amidst one of the more complex funding environments in the last decade. We are deeply grateful to our IGF III investors for their confidence in our platform. Our conviction has never been stronger that investing in technologies enabling the digital transformation of asset-heavy industries is the most scalable lever for accelerating industrial competitiveness and also positioned to deliver excellent returns" [1].

References:
[1] https://www.morningstar.com/news/pr-newswire/20250730ph40364/yaletown-partners-announces-first-close-of-250-million-innovation-growth-fund-iii