The EdgeStone Capital Venture Funds provide capital to early and mid-stage technology companies whose technology is substantially complete and already tested. In particular, we invest in companies that sell technology solutions to the enterprise; where the intellectual property resides in the software.

Fund management team
Derek Smyth– Partner
Laura Lenz – Principal
Damien Steel – Vice President

EdgeStone Capital Venture Fund III, L.P.
Currently fundraising
Target fund size of C$150 million
Lead investor: Ontario Venture Capital Fund, managed by Northleaf Capital Partners Link

EdgeStone Capital Venture Fund II, L.P.
Committed capital of C$108 million
Closed for new investments
Portfolio companies

EdgeStone Capital Venture Fund, L.P.
Committed capital of C$104 million
Closed for new investments
Portfolio companies

The Venture Fund seeks to generate superior investment returns by focusing on early-stage companies ranging from those whose technology is well developed but not necessarily commercialized to fully developed technologies and paying customers.

When we assess a company as an investment opportunity for the Venture Fund, we consider the fundamental prospects of the potential investments, taking into account:

Proven product or service
We invest in companies that demonstrate an ability to become leaders in their industries or an industry niche. We look for companies that have:

• Proprietary scaleable technology or a unique application or business model capable of broad commercialization and profitability
  
• Demonstrated an ability to achieve superior levels of quality and service that will provide them with a true competitive advantage
  
• The opportunity to be their industry's leading solutions provider
  

Strong and flexible intellectual property
We will favor investments in companies that have valuable and defensible intellectual property with multiple applications and can offer multiple paths to saleable products or services. Building a market, and then competing in that market, requires intellectual property that is unique and difficult to replicate or substitute. Moreover, the ever changing market for technology driven solutions requires that a core technology adapt to the demands of the market and the strategic direction of a portfolio company.

Quality and commitment of management
We believe that partnering with properly motivated, highly experienced and very capable entrepreneurial management teams is fundamental to realizing superior investment returns. We invest in management teams that have:

• High standards of integrity, capability and commitment
  
• An appropriate mix of business skills
  
• A substantial stake in their company, with remuneration linked to investment returns
  
• Passion for their businesses
  

Strong industry fundamentals
An industry's attractiveness is one of the main factors influencing investment returns. We consider the following issues before making an investment:

• Expected growth rates
  
• Sensitivity to economic cycles
  
• The intensity of competition
  
• The propensity for high rates of return on invested capital
  
• Strong barriers to entry for competition and strong barriers to exit for customers
  

Many logical acquirers
We strive to build large, profitable portfolio companies and continually work towards the ultimate goal of providing liquidity to the company’s investors, whether it is through an IPO or a sale to a strategic buyer. We look to maximize exit valuations by investing in companies that have the potential to attract many bidders..

A broad technological competence, combined with significant entrepreneurial experience and active participation at the Board level, have resulted in superior investment performance.