By Lynda Kiernan
District Ventures Capital, a leading Canadian venture investor in the CPG space, announced it has reached its funding goal of C$100 million (US$71.64 million). Additional capital commitments totaling C$35 million (US$25.07 million) from Farm Credit Canada, the country’s largest agricultural term lender, BDC Capital, the investment arm of Canadian bank BDC, and other existing investors boosted the fund to reach this benchmark.
These investments follow investments announced in June 2019 by District totaling C$33 million (US$23.64 million) from the Ontario Municipal Employees Retirement System (OMERS) and the Bank of Montreal.
Based in Calgary, District Ventures was founded and is led by general partner, investor, and entrepreneur Arlene Dickinson. The fund has honed in on the food, beverage, health & wellness, and beauty sectors as offering particularly strong opportunities for growth based on demographic trends and consumer shifts toward sustainability and social stewardship. Furthermore, the food and beverage sectors outpace all others for growth in patents granted, generating a constant pipeline of innovation ready for investment.
“From the outset, District Ventures Capital has invested under the thesis that early-stage consumer goods companies represent immense opportunity for growth – particularly in Canada which is known for its strength and knowledge in agriculture and health,” said Dickinson.
Dickinson goes on to say how Canada’s food and beverage startups have long faced funding challenges, as the majority of venture capital has historically been directed into tech. To fill the void, District Ventures offers a one-of-a-kind fund that also incorporates an accelerator, a commercial kitchen, and a distribution program.
Portfolio companies gain more than capital. Rather, they gain an ecosystem that offers the opportunity to scale through access to leading experts and mentors in sales, distribution, and retail; the development of impactful marketing strategies; the creation of e-commerce platforms; increasing brand equity; positive exposure to both North American and global markets; and the improvement of operations, financial, and legal management.
“While the majority of venture capital dollars in Canada continue to be earmarked for technology investments, we are focusing on helping companies who deliver on providing for consumers nutritional, health and well-being needs,” said Dickenson. “The additional investors in the fund signal that there is both confidence in District Ventures and value seen in the growth opportunities in these categories.”
FCC, which is the leading agriculture and food lender in Canada with a portfolio of more than $38 million, made note of the key role District Ventures’ is playing in developing and accelerating innovation in the country’s food industry.
“FCC is proud to support District Ventures, which is playing an important role in ensuring access to capital and other support services for companies that are innovating and expanding Canada’s food industry,” said Rebbecca Clarke , vice president and treasurer, FCC. “FCC has supported the agriculture and food industry for 60 years, and District Ventures is an important and exciting opportunity for the food sector.”
Co-investor BDC Capital, the investment arm of BDC, the only bank in Canada with a dedicated focus on entrepreneurs and C$3 billion (US$2.15 billion) in AUM, said that it has isolated the food, health, and wellness sectors for development.
“District Ventures is well positioned to support the wave of innovative Canadian start-ups we see operating in the food and health and wellness sectors,” said Alison Nankivell , vice president of fund investments, BDC Capital. “This is a significant area of competitive strength for Canada which BDC Capital wants to develop by working with partners such as District Ventures. We are also proud to support a strong Canadian female GP striving to build a portfolio with significant female representation at the management level.”
– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.