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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.

Learn more about deal-by-deal investments 

Diversified Funds

These Funds are structured as a traditional VC fund (Limited Partnership) that will invest in a diversified portfolio of 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$25k 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 usually C$100k.

Note that a percentage of your investment is due on commitment, and capital calls thereafter. 

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.

Brightspark also offers the option to sell your position to other accredited investors through its Secondary Transactions Program.

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
- Returns are not guaranteed. VC investments are very risky, and you could lose your entire investment.
- A successful sale through the Secondary Transaction Program is not guaranteed.

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 to 4 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. A percentage goes to Brightspark as carry.

Diversified Fund:

Fees and carry will vary, but generally:

• Management fees (approx. 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, along with additional returns net of a carry (approx. 20%).

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, New Brunswick, Nova Scotia, Quebec and Ontario with the Provincial Securities Commissions in Canada.