Conexus Venture Capital Secures $30 Million for New Fund

Conexus Venture Capital (CVC) has successfully closed its second fund, reaching a target of $30 million CAD. This fund is set to support technology startups in Saskatchewan as CVC aims to enhance the province’s entrepreneurial landscape. The announcement was made by Jordan McFarlen, managing director of CVC, who emphasized the significance of this achievement for Saskatchewan’s tech community.

Fund Development and Investment Strategy

The Regina-based venture capital firm launched this fund in May 2024, initially securing $15 million CAD in its first close, primarily from its founding partner, Conexus Credit Union. Following this, CVC has raised an additional $15 million from various limited partners, including eight undisclosed credit unions, institutional investors, high-net-worth individuals, and family offices throughout Saskatchewan.

The fundraising process spanned 18 months, during which CVC navigated a challenging venture capital market. McFarlen noted the robust support from both existing and new limited partners, which was critical in achieving their fundraising goals.

Since initiating the fund, CVC has already invested in three startups: Alto, a home care technology company based in Saskatoon; Offstreet, which specializes in parking management software in Regina; and LiORA, a soil remediation platform with operations in Calgary and Saskatoon.

Continuing Legacy and Future Plans

CVC’s inaugural fund, created in collaboration with the incubator Cultivator in 2019, made 17 investments, with 13 of these in Saskatchewan-based startups. According to CVC, this fund ranks in the top quarter of similar funds from the 2019 vintage in North America. To date, CVC has successfully exited from two companies, Curatio and Thinkific, and participated in secondary investments in two additional firms.

As Canada’s only Saskatchewan-headquartered and credit union-led venture capital fund, CVC has built a portfolio that includes prominent tech companies such as 7shifts, which provides team management software for restaurants, and Coconut Software, known for its financial institution appointment scheduling platform.

The second fund will mirror the investment strategy of its predecessor, focusing on Saskatchewan-based software startups. CVC plans to support between 10 to 15 companies across the pre-seed to Series A stages, with both lead and co-lead investment rounds.

McFarlen will manage the deployment of the fund alongside Alex Shimla, co-founder of the Saskatoon tech incubator Co.Labs, who joined CVC as principal last fall, and Gabrielle Schubach, CVC’s manager of venture capital finance and operations.

Conexus is also in the process of merging with two other Saskatchewan credit unions, Cornerstone and Synergy, with the merger set to take effect in early 2026. McFarlen stated that this merger will enhance CVC’s largest limited partner while reaffirming Conexus’s commitment to fostering the growth of Saskatchewan’s tech ecosystem.

In a statement, Celina Philpot, CEO of Conexus, characterized the credit union’s $15 million investment in CVC Fund II as a testament to their belief in Saskatchewan’s entrepreneurs and tech startups. Through initiatives like CVC and Cultivator, Conexus has incubated 196 startups, contributing to the creation of over 600 jobs in the province.

With this successful fund closure, CVC is poised to play a pivotal role in shaping the future of technology in Saskatchewan, providing much-needed capital and support to emerging companies.