5. stage Canadian venture asset class. Of the Pre-Seed/Seed VC firms we examined, we found that their thesis was not necessarily Canada-focused, or had a weak, very generalist investment thesis, investing in everything from consumer gadgets to specialist surgical tech hardware ventures. One area with a growing area of options is in the area of “cleantech”, however we couldn’t help but think that these were overly opportunistic funds, investing in very capital-intensive ventures. This is why we were pleasantly surprised to come across Badhouse Ventures, with a software-first investment thesis and an unabashed Canadian focus, in particular around the burgeoning West Coast ecosystem of Vancouver. A micro-VC fund focused on early-stage Canadian tech startups, such as Badhouse Ventures, offers several advantages over generalist VC funds: 1. Local expertise: A geo-focused VC like Badhouse has a deep understanding of the local startup ecosystem, including its unique strengths, challenges, and opportunities. This local expertise allows the fund to identify promising startups more effectively and provide tailored support to help them grow and succeed in the regional market. 2. Stronger relationships: By concentrating on a geography, a VC can foster stronger relationships with local entrepreneurs, accelerators, incubators, and other stakeholders. This facilitates better deal sourcing and access to startups that might otherwise be overlooked by funds with a broader focus. As we strongly believe that software is still not done eating the world, with the digital transformation of key industries still incomplete and a new wave of technologies, such as AI large language models and blockchain-based smart contracts, acting as new catalysts, it makes sense to have exposure to software-focused venture capital. When we examined the Canadian market, there was truly only one firm that provides exposure to early-stage software ventures in Canada: Badhouse Ventures. Badhouse Ventures was selected the 2023 winner of “Best Software Startup Investment & Support” firm for several reasons. Most notably, the firm’s modus operandi is quite high-touch, offering close support for founders, increasing the chances of success and de-risking early-stage startup investments for their LPs. In addition, we were impressed at how Badhouse’s unique position in relevant communities allows them to see potential startup deals up to 12 months before other investors, which can lead to better valuation entry points; Badhouse organises pitch events and networking events for early-stage founders, and its partners are active participants in local programs, such as mentorship at university incubators. Contact: Ralph Baddour, Managing Director VC firm: Badhouse Ventures Website: https://www.badhouse.ca Investor relations: [email protected] “Geographical diversity and exposure to early-stage venture is more relevant now. ” – The Canadian oppurtunity
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