TLDR:
- DMZ Ventures launches new fund for early-stage startups committing up to $5 million CAD
- The fund plans to make up to 10 investments per year, ranging from $100,000 to $250,000 CAD
DMZ Ventures, the for-profit arm of Toronto-based incubator DMZ, has announced the launch of a new fund for early-stage startups. The fund, initially committing up to $5 million CAD, aims to make up to 10 investments per year, ranging from $100,000 to $250,000 CAD. This funding will be specifically targeted towards pre-seed and seed-stage startups from within and outside of DMZ’s portfolio. The fund is structured as a corporate venture and is made up of “recycled revenue” from DMZ’s consulting arm and portfolio exits from alumni.
The fund has already made investments in four startups, including Leasey.AI, Flowjin, and Talin, at the recent Insiders event in Toronto. The first investment was in Toronto-based Softdrive, a virtual computer service company that is an alumnus of DMZ’s incubator program. DMZ Ventures aims to fill a critical financing gap at the pre-seed and seed stages, as early and mid-stage financings were down 37 percent in 2023.
DMZ Ventures, previously known as Ryerson Futures Inc., has helped more than 830 startups raise $2.69 billion in cumulative capital to date. The fund will primarily invest in companies within DMZ’s portfolio but will also consider companies outside of the network. Unlike its predecessor, DMZ Ventures is making larger investments in companies with this fund compared to the previous cheques cut by Ryerson Futures. Additionally, DMZ has partnered with proptech investor GroundBreak Ventures to provide custom scaling support to companies addressing Canada’s housing crisis.
