CBIV Closes First Fund with Over $90 Million in Commitments
Toronto-based Cross-Border Impact Ventures (CBIV) has successfully closed its first fund, securing over $90 million USD in total commitments.
Investing in Healthtech Startups with a Purpose
CBIV, a women-led, impact-focused venture capital firm, focuses on investing in tech startups across North America and Europe that address the health needs of women, children, and adolescents or improve health systems.
Balancing Market Returns and Positive Health Outcomes
CBIV’s limited partners (LPs) are optimistic that the firm can generate both quality returns and positive health outcomes. The firm’s co-founder and managing partner, Annie Thériault, highlighted the importance of not sacrificing one for the other.
Garnering Support from Diverse LPs
CBIV was able to secure commitments from nearly 40 LPs, including German national development bank KfW, the United Kingdom’s M&G Catalyst, and various family offices and foundations. The firm’s lead LPs, KfW and Global Health Investment, provided “concessionary capital” that allows other LPs to earn higher internal rates of return and provides downside protection.
Overcoming Challenges in Fundraising Journey
CBIV faced various obstacles during its fundraising journey, including the COVID-19 pandemic and shifts in impact investment priorities. However, with strong communication, execution, and persistence, the firm approached over 1,500 prospective investors to land its nearly 40 LPs.
Investing in Early Growth-Stage Healthtech Startups
CBIV typically leads or co-leads Series A or Series B rounds with initial cheques of about $2.5 million to $3 million, investing up to $10 million per company. The firm has already made five investments to date across the US and Europe and expects to back nine or 10 startups through Fund I.
Analyst comment
This news can be evaluated as positive. CBIV successfully closed its first fund with over $90 million in commitments, securing support from diverse LPs, including notable institutions. As an analyst, I expect the market to see increased investment in healthtech startups addressing the needs of women, children, and adolescents, leading to growth and innovation in the industry.
