OMERS, Bank of Montreal Invest C$33M in District Ventures Capital

July 11, 2019

by Lynda Kiernan

The Ontario Municipal Employees Retirement System (OMERS) and the Bank of Montreal have committed $33 million (US$25.2 million) to District Ventures Capital, a venture fund dedicated to investing in innovative early-stage companies in Canada’s food, beverage, health, and wellness sectors. This capital brings the fund to C$70 million (US$53.5 million).

Based in Calgary, District Ventures was founded, and is led by general partner Arlene Dickinson. The fund has honed in on the food and health 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.

“We are pleased to have these institutional investors backing our Fund,” said Arlene Dickinson, general partner, District Ventures Capital. “Their commitment underlines our strategy of investing in early stage food, beverage and wellness consumer goods companies and the significant and global growth opportunity these categories represent.”

Founded in 1962, OMERS represents one of Canada’s largest benefit pension plans with net assets exceeding C$97 million (US$74 billion) as of December 31, 2018. It acts on behalf of nearly half a million members by originating and managing a diversified portfolio spread across private equity, infrastructure, real estate, and public markets. 

OMERS’ co-investor in this deal, the Bank of Montreal (BMO), is the eighth largest bank in North America by assets, with assets totaling $830 billion as of April 30, 2019. Engaging with more than 12 million customers, BMO operates through three groups: Personal and Commercial Banking, BMO Wealth Management, and BMO Capital Markets. 

“At BMO, we’re focused on helping early stage companies in Canada scale and grow,” said Allison Hakomaki, senior vice president and head, Prairies Region, Corporate Finance Division, BMO Financial Group. “District Ventures provides a holistic support model for entrepreneurs in the AgriFood and Health sectors and is making an impact. We are proud of the relationship we have already fostered with District Ventures and look forward to seeing the portfolio grow.”

Dickinson goes on to say how Canada’s food and beverage startups have long face funding challenges, as the majority of venture capital has 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. 

“Our country has a global and expert reputation in AgriFood and Health, and District Ventures is uniquely qualified to build consumer goods companies in these sectors to scale,” said Dickinson. “All of this, combined with innovative entrepreneurs, translates into products consumers will buy and love anywhere in the world.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.

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