Montreal-Based Venture Firm Surpasses Fundraising Target Amidst Challenging Market Conditions
Diagram Ventures, a Montreal-based venture builder and investor, has successfully closed its first-ever ClimateTech Fund, raising $80 million CAD—surpassing its initial target of $60 million. The final close marks a significant milestone for the firm as it expands its focus beyond its FinTech roots to tackle climate change solutions.
Diagram Ventures Expands Beyond FinTech
The $80 million raised will fuel Diagram’s ambitions to launch and support early-stage cleantech companies, applying the firm’s proven venture studio model. Notably, Diagram’s move into the climate technology space follows its strong track record of creating FinTech startups, with more than 25 companies launched since its founding in 2016.
“We’re excited about the support we’ve received, which reflects strong institutional backing for our climate tech strategy,” said Amélie Foz-Couture, partner and co-head of the ClimateTech Fund at Diagram. “This is a new vertical for us, and we’re committed to leveraging our model to make a tangible impact in the climate space.”
Institutional Support and Key Backers
The fund achieved its final close with support from several key institutional partners. The Desmarais family-linked Sagard and Investissement Québec, through the Québec government, were the anchor investors. Other limited partners (LPs) include Export Development Canada, Fondaction, BDC Capital, Teralys Capital, and several high-net-worth individuals and family offices, including Mavrik, BoxOne Ventures, and Desjardins Capital.
Teralys Capital’s principal, Beatrice Couture, emphasized the value of Diagram’s unique and systematic approach to venture creation. “We believe their model will be equally effective in cleantech, providing promising opportunities in this growing sector,” she said.
New Investment Strategy Focused on Cleantech
The ClimateTech Fund targets startups developing innovative solutions to combat climate change and reduce emissions. Foz-Couture highlighted the fund’s focus on “capital-efficient digital solutions that accelerate the global transition to a more sustainable future.”
So far, Diagram has already established two ventures: ReliON, which offers software solutions for electric vehicle (EV) charging infrastructure maintenance, and Lyteflo, which provides EV sales enablement services. ReliON secured a $3 million seed round in the summer, while Lyteflo is currently raising its own seed funding.
Support for Early-Stage Cleantech Companies
Diagram plans to invest between $2 million and $5 million in 15 to 20 early-stage cleantech companies over the next few years, with a focus on pre-seed to Series A stages. Foz-Couture emphasized the firm’s strategy of creating companies internally, but also supporting existing entrepreneurs who could benefit from Diagram’s backing and ecosystem.
“We aim to build ‘a handful’ of companies annually, and we will also back entrepreneurs who are already up and running,” Foz-Couture noted. “We see a lot of potential in applying our proven model to the climate sector.”
Diagram’s Role in Canada’s Cleantech Ecosystem
The launch of Diagram’s ClimateTech Fund adds to a growing wave of cleantech-focused Canadian venture capital funds, with firms like Active Impact Investments, ArcTern Ventures, and Pangaea Ventures also entering the space. While Canadian cleantech startups face challenges, such as market conditions and issues with Sustainable Development Technology Canada, the sector continues to attract investment.
Foz-Couture expressed optimism for Canada’s role in the global climate tech movement. “There’s a lot of excitement around investing in climate innovation, especially in Quebec and Canada,” she said. “We want to help make Canada a leader in this field.”
Looking Ahead: Diagram’s Vision for Cleantech
Diagram’s venture builder model will be key to identifying new market opportunities and mitigating risks through strategic partnerships. The fund will also work closely with cleantech companies to support them through their growth stages.
“We are excited about the potential of cleantech and the entrepreneurial talent that exists outside of this space,” Foz-Couture concluded. “We hope to match these talented entrepreneurs with validated problems in the climate sector, helping them make a meaningful impact on sustainability.”
With $400 million in assets under management across its five funds, including its recently launched FinTech fund, Diagram Ventures is positioning itself as a key player in both the FinTech and cleantech sectors.
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