How it works
Invest in private venture capital funds that, in turn, invest in one or more Canadian early-stage tech companies.
Accredited investors of any size (individuals, family offices, trusts, corporations, small institutions) that are looking to invest in the VC asset class.
Generally, an accredited investor meets at least one of the criteria below:
- You earned a net income before taxes exceeding $200,000, or $300,000 combined with a spouse in each of the two most recent years;
- You, alone or with a spouse, own at least $1 million in financial assets before taxes;
- You, alone or with a spouse, hold at least $5 million in net assets;
- You are investing as a corporation, limited partnership, trust or estate that has net assets of at least $5 million;
- You currently are, or once was, a registered advisor or dealer, other than a limited market dealer.
Not sure if you qualify? Contact our team
Companies sourced by venture capital veterans
Each investment is rigorously evaluated to ensure that the technology, market potential and team have all been validated.
Choose how you want to invest
Make a one-time investment in a Fund that is investing in a diversified portfolio of early-stage tech companies.
- Minimum Commitment: C$100K
- Structure: Limited Partnership
- Invests in: 15-30 Companies
- Available to: Canadian and International accredited investors
We partner with leading wealth management firms to make the VC asset class accessible to their clients.
Deal by deal investments
Every time Brightspark invests in a new company, we create a new Special Purpose Vehicle (SPV) Limited Partnership Fund that is open to accredited investors. When you invest in a Brightspark Special Purpose Vehicle fund, you become a Limited Partner and own units in that fund.
Brightspark Canadian Opportunities Fund
The Fund is structured as a traditional VC fund (Limited Partnership) that will invest in a diversified portfolio of 15-35 companies over a few years. You become a Limited Partner and own units in the fund. Sold by Offering Memorandum.
Deal by deal investments:
The minimum investment is C$10k per investment, and the average individual investment size is $35k-$50k.
When deciding how much to invest, take into consideration that we suggest you diversify your risk by investing in multiple deals, and plan to reserve some capital for a follow-on strategy.
If you invest in a diversified fund:
The minimum commitment in the fund is C$100k.
Note that 10% of your investment is due on commitment, and capital calls thereafter. The most likely pace for capital calls will be 45% over the first three years (approximately 15% per year), and 45% over year 4 and 5 (approximately 22.5% per year). More simply: budget approximately 20% per year for 5 years.
As an investor, you make money when (and if) a company in your investment portfolio goes through a liquidation event. You will then receive your initial investment back as well as your allocated portion of the profit.
You should know that:
- usually, a liquidation event takes the form of an acquisition or an IPO
- the average time before a company exits is 5-7 years, but this varies
- there is currently no secondary market for Brightspark investments, making them illiquid
- venture capital investments are very risky, and you could lose your entire investment
Note that returns distribution is managed differently depending on whether you're investing in a Special Purpose Vehicle (SPV) or in a traditional VC fund structure.
Deal by deal fees:
- Management fees (1.5 to 2% per year for the first 3 years) is used as a compensation for Board seating, due diligence, legal paperwork, etc.
- Admin Reserve fee (one-time 2.5 to 4%) is reserved for external out-of-pocket fund expenses such as legal fees, tax and accounting costs
- When there is an exit, Brightspark first returns your contributed capital, and 85% of the returns are distributed amongst Limited Partners. 15% goes to Brightspark as carry.
Brightspark Canadian Opportunities Fund:
- Management fees (2% per year) is used as a compensation for Board seating, due diligence, legal paperwork, etc.
- As companies in the fund exit, Brightspark returns contributed capital to Limited Partners, and 80% of the returns are distributed amongst Limited Partners. 20% goes to Brightspark as carry.
Investing in venture capital involves a high degree of risk. Early-stage investing in technology companies is a risky endeavour, and many early-stage companies fail (and investments are lost). Additional risks include changing economic conditions, difficulty in valuing startup investments, absence of liquidity, and more. We encourage you to read our complete risk disclosure.
Before investing with Brightspark, you should carefully review the risk factors. In addition, you should consult your own counsel, accountant and other advisors as to legal, tax, business, financial, and related aspects of an investment with Brightspark.
Brightspark Financial Inc., a wholly-owned subsidiary of Brightspark Capital Inc., is registered as an Exempt Market Dealer (EMD) in Alberta, British Columbia, Quebec and Ontario with the Provincial Securities Commissions in Canada.
Our team takes care of the heavy lifting
Professional due diligence
- Several months spent evaluating a company
- Access to a broad network of expert advisors
- Review our research and market insights
- Board presence with our portfolio companies
- Hands-on operational and technical expertise
- Follow-on strategy for high-performing companies
Terms and negotiation
- Follow-on rights, pro rata rights, and more
- Fair and complete term sheet
- Same terms as institutional co-investors
- Detailed quarterly and annual reports
- Online dashboard and financial statements
- Exclusive invitation to our annual investor summit
Access a unique type of investment
Diversify your portfolio
Because it is uncorrelated to other assets and has unique attributes, venture capital has the ability to add diversification to a portfolio.
Enhanced return potential
While venture capital investments have a high level of risk, they also have the ability to generate high returns when successful.
Access to the private markets
There has been a huge shift in value creation from public to private markets. Tech companies today are staying private longer than ever.
Canadian tech emergence
New tech startups continue to emerge in Canada, and many are disrupting massive markets that are creating significant value.
Disclaimer: All securities involve risk and may result in loss – venture capital investing is particularly risky and may result in total loss.
We do not provide investment advice to investors.