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Deloitte Venture will make minority investments in emerging technology companies.
After tracking growing tech startups for several years with its annual Technology Fast 50 list, Deloitte Canada is getting into the venture capital business itself. Deloitte Canada has announced the launch of Deloitte Ventures, a CAD 150 million investment fund.
Deloitte Canada said its new venture capital fund will make minority investments in emerging technology companies and is designed to accelerate Canada’s technology sector.
Deloitte is a multinational professional services network that provides audit and assurance, consulting, financial consulting, risk consulting, tax and related services to business clients.
Although this is Deloitte Canada’s first venture capital fund, its parent company Deloitte already operates a venture capital investment division that includes such services as assistance in raising venture capital and legal assistance in structuring transactions and closing deals.
It wasn’t the easiest road for Deloitte to get to its new fund.
Deloitte Canada expects to invest in verticals such as financial technology, health and life sciences technology, consumer technology, cyber security, governance risk compliance and sustainability and clean technology.
Deloitte Ventures said it also expects to accelerate the adoption of technological advances, such as artificial intelligence and machine learning, and explore other emerging technologies “critical to the future of Canada’s economy and global competitiveness.”
It wasn’t the easiest road for Deloitte to get to its new fund. According to a person familiar with the firm’s plans, Deloitte has been working on the fund for several years, hoping to launch the $175 million fund to support its Canada at 175 research initiative and coincide with the firm’s 175th anniversary in 2020. Deloitte did not managed to launch the fund on time or at the target amount.
According to another source familiar with the VC funding space, Deloitte has asked many VCs to come in and run the fund, but has been unable to hire an outsider with general partner experience. According to the source, this is because the fund does not appear to be “fully committed”.
In addition, “they are an auditor, which creates conflicts that are very difficult to navigate,” the source commented.
RELATED: Deloitte Canada acquires Ouest Business Solutions to strengthen presence in Western Canada
Instead, Deloitte took a different tack, naming Talia Abramowitz as managing partner of Deloitte Ventures, responsible for launching the fund. Abramowitz has considerable experience navigating the ins and outs of being a Canadian auditor. She previously served as COO for Deloitte’s national financial advisory practice and for Omnia AI, the firm’s artificial intelligence practice in Canada. Abramowitz also co-founded Deloitte Canada’s Artificial Intelligence practice in 2018.
Abramowitz also has more than a decade of experience providing valuation and M&A advisory services to a variety of companies, with a particular focus and interest in the technology sector. She has extensive experience in strategy development and complex execution, specializing in driving operational improvements and enabling growth through strategic investments.
Deloitte Ventures seeks to invest in emerging technology companies with validated product-market fit that have achieved $2 million or more in annual recurring revenue.
In addition, startups seeking funding must grow in a B2B market, seek a strategic partner to accelerate growth in Canada and be “ready to contribute meaningfully to Canada’s innovation leadership and ecosystem,” according to Deloitte Ventures.
In addition to tracking rising tech stars through its annual Fast 50 list, Deloitte Canada is itself actively acquiring startups. Deloitte Canada pursues M&A opportunities that strengthen the firm’s digital, data and artificial intelligence capabilities.
It acquired Ouest Business Solutions, a Vancouver-based SAP consulting firm, in 2021, as well as Clockwork, Dataperformers, Groundswell Group and TWG.
Story updated 01/26/22 with additional files by Douglas Soltis.
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