Key Takeaways
- • Conexus Venture Capital Inc. launched Emmertech, its second venture capital fund, on August 23, 2021, with an initial close of CAD $45 million and expectations to reach CAD $60 million by final close at year-end.
- • Emmertech focuses exclusively on Canadian agtech and agribusiness innovation, representing a sector-specific investment strategy distinct from CVC's existing generalist fund (CVC Fund #1).
- • CVC adopted a non-traditional investment approach tailored to agriculture sector requirements, with Managing Director Sean O'Connor stating the firm deliberately abandoned the standard Canadian venture capital playbook to address industry-specific commercialization challenges.
- • MLT Aikins provided legal counsel for both the establishment of Emmertech and CVC Fund #1, as well as prior investment transaction support for the initial fund.
- • The fund launch reflects institutional recognition that agricultural technology requires differentiated due diligence, stakeholder engagement, and commercialization pathways compared to traditional technology venture investments.
Summary
Conexus Venture Capital Inc. announced the establishment of Emmertech, a dedicated agtech venture capital fund, on August 23, 2021, marking the firm's expansion beyond its initial generalist technology platform. The fund achieved an initial close of CAD $45 million, with management projecting a final close of CAD $60 million by the end of 2021. Emmertech will operate alongside CVC Fund #1, the firm's existing multi-sector venture vehicle, allowing Conexus to pursue both diversified and specialized investment strategies within its portfolio.
The fund's strategic positioning reflects a deliberate departure from conventional venture capital methodologies. According to Sean O'Connor, Managing Director of CVC, "The Canadian venture capital playbook doesn't work within the agtech industry as it does other industries, so we've thrown it out and are building our approach that can create highly reliable technology products ready for commercialization in one of the most important industries in the world." This statement signals that Emmertech's investment thesis incorporates sector-specific diligence requirements, longer commercialization timelines, and stakeholder engagement models tailored to agricultural end-users rather than generic software or digital platforms.
The fund's establishment was structured with substantive input from agricultural industry participants. By engaging stakeholders directly, CVC sought to ensure its investment criteria, portfolio company support mechanisms, and exit strategies align with the operational realities and capital requirements of the agtech and agribusiness sectors. This approach addresses the structural mismatch between traditional venture capital processes—optimized for rapid scaling and early-stage software companies—and the capital-intensive, regulatory-dependent nature of agricultural technology commercialization.
MLT Aikins, a Canadian law firm, provided comprehensive legal counsel throughout the fund's establishment, including transaction support for prior investments under CVC Fund #1. The firm's involvement underscores the complex structural and regulatory considerations inherent in launching a sector-specific venture vehicle backed by institutional capital.
The fund's strategic positioning reflects a deliberate departure from conventional venture capital methodologies. According to Sean O'Connor, Managing Director of CVC, "The Canadian venture capital playbook doesn't work within the agtech industry as it does other industries, so we've thrown it out and are building our approach that can create highly reliable technology products ready for commercialization in one of the most important industries in the world." This statement signals that Emmertech's investment thesis incorporates sector-specific diligence requirements, longer commercialization timelines, and stakeholder engagement models tailored to agricultural end-users rather than generic software or digital platforms.
The fund's establishment was structured with substantive input from agricultural industry participants. By engaging stakeholders directly, CVC sought to ensure its investment criteria, portfolio company support mechanisms, and exit strategies align with the operational realities and capital requirements of the agtech and agribusiness sectors. This approach addresses the structural mismatch between traditional venture capital processes—optimized for rapid scaling and early-stage software companies—and the capital-intensive, regulatory-dependent nature of agricultural technology commercialization.
MLT Aikins, a Canadian law firm, provided comprehensive legal counsel throughout the fund's establishment, including transaction support for prior investments under CVC Fund #1. The firm's involvement underscores the complex structural and regulatory considerations inherent in launching a sector-specific venture vehicle backed by institutional capital.
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