Key Takeaways
- • The Government of Saskatchewan deployed $15 million in venture capital through Conexus Venture Capital Inc. (CVC) to fund early-stage agtech startups, with capital committed exclusively to Saskatchewan-based companies over a five-year investment horizon.
- • Conexus Venture Capital Inc. was selected as fund manager following a competitive RFP process initiated in August 2020, competing against multiple proponents and evaluated by government and industry subject matter experts.
- • Saskatchewan's $15 million commitment will be deployed through the Emmertech fund, a larger agtech-focused venture vehicle managed by CVC that targets digital farm technology investments across Canada and was in final capital-raising stages as of June 2021.
- • The initiative directly addresses a stated capital gap in Canadian agtech, where early-stage venture funding scarcity has been identified as a key constraint to innovation and global competitiveness in the sector.
- • Conexus Venture Capital Inc., operating as a provincially regulated money manager under Conexus Credit Union's parent organization, brings an established track record in venture management to the partnership.
Summary
Saskatchewan announced the selection of Conexus Venture Capital Inc. (CVC) as the fund manager for a $15 million government-backed agtech venture capital investment on June 7, 2021. The capital will be deployed exclusively through Saskatchewan-based agtech startups via CVC's Emmertech fund, a specialized venture vehicle focused on early-stage digital farm technology investments operating across Canada. The fund was in its final capital-raising phase at the time of the announcement.
The investment commitment stems from a competitive Request for Proposal process launched by Innovation Saskatchewan in August 2020. Conexus Venture Capital Inc. emerged as the top-ranked proponent following a structured evaluation involving subject matter experts from government and industry stakeholders. The five-year deployment timeline underscores a longer-term commitment to building venture infrastructure in the province's agtech sector.
According to Eric Dillon, Chief Executive Officer of Conexus Credit Union (CVC's parent organization), the initiative directly addresses a recognized constraint in Canadian agtech innovation. "One of the biggest challenges in Canadian agtech is the lack of private capital," Dillon stated, emphasizing that proper access to early-stage venture funding is essential for Canada to establish global leadership in agricultural technology. This capital gap has limited the ability of promising agtech founders to scale operations and commercialize innovations.
Jeremy Harrison, Minister Responsible for Innovation Saskatchewan, framed the partnership as instrumental to economic growth. The fund is expected to drive job creation and technology adoption among Saskatchewan farmers and producers, positioning digital farm technologies as competitive advantages in agricultural operations. Conexus Venture Capital Inc.'s status as a provincially regulated money manager provided regulatory assurance to government decision-makers during the selection process.
The Emmertech fund represents a hybrid public-private capital structure, with Saskatchewan's $15 million commitment joining other institutional and private capital sources. The fund's nationwide investment mandate across Canadian agtech startups, combined with Saskatchewan's preferential allocation to in-province companies, creates a targeted mechanism for regional economic development within a broader national agtech investment thesis.
The investment commitment stems from a competitive Request for Proposal process launched by Innovation Saskatchewan in August 2020. Conexus Venture Capital Inc. emerged as the top-ranked proponent following a structured evaluation involving subject matter experts from government and industry stakeholders. The five-year deployment timeline underscores a longer-term commitment to building venture infrastructure in the province's agtech sector.
According to Eric Dillon, Chief Executive Officer of Conexus Credit Union (CVC's parent organization), the initiative directly addresses a recognized constraint in Canadian agtech innovation. "One of the biggest challenges in Canadian agtech is the lack of private capital," Dillon stated, emphasizing that proper access to early-stage venture funding is essential for Canada to establish global leadership in agricultural technology. This capital gap has limited the ability of promising agtech founders to scale operations and commercialize innovations.
Jeremy Harrison, Minister Responsible for Innovation Saskatchewan, framed the partnership as instrumental to economic growth. The fund is expected to drive job creation and technology adoption among Saskatchewan farmers and producers, positioning digital farm technologies as competitive advantages in agricultural operations. Conexus Venture Capital Inc.'s status as a provincially regulated money manager provided regulatory assurance to government decision-makers during the selection process.
The Emmertech fund represents a hybrid public-private capital structure, with Saskatchewan's $15 million commitment joining other institutional and private capital sources. The fund's nationwide investment mandate across Canadian agtech startups, combined with Saskatchewan's preferential allocation to in-province companies, creates a targeted mechanism for regional economic development within a broader national agtech investment thesis.
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