iNovia Fund III

16Dec11

Posted on December 16, 2011 by John Elton at iNovia Capital

Today, we are happy to announce the first close of $110M for our third fund focused on investments in the Digital Media, Internet and Communications sectors. iNovia has had an exciting journey over the past few years. In many ways, it is a remarkably similar to the typical path of a start-up. It rose out of humble beginnings in 2002, followed by plenty of hard work through various ups and downs and changing of plans. However, it wasn’t until 2007 when the current team coalesced around Fund II that things really began to click.

We came together with a simple model attached to an ambitious plan. The foundation of our strategy is built upon the same bedrock that supports any successful venture – the team. Each member of iNovia’s team has founded, operated and/or invested in the early stages of successful technology companies. Secondly, our team focuses on large market opportunities: Digital Media, Internet and Communications – all areas where we have expertise. These two aspects, operational and domain expertise, afford us the ability to make quick, informed decisions. Post investment, the same two skills help us provide sensible council to entrepreneurs to help them build successful companies. Our focus on the importance of teams also extends to the companies we invest in, where we live and die by the sword of targeting founder built companies.  Lastly, we have stuck to a smaller fund size that keeps our interests properly aligned.  With this fund size, we can benefit from sub-$100m outcomes that represent the bulk of M&A while still having enough resources to help finance companies that become large category leaders.

So far, the model is working well:

  • 30+ portfolio companies generating over $300M in aggregate revenue

  • 2 of our portfolio companies will do over $100M in revenue this year, with several more on a revenue run rate of over $10M, plus a number of earlier stage investments that are growing at extraordinary rates.

  • 600 full-time employees across all of our portfolio companies

  • 2 exits in past year, OggiFinogi and Babble, providing attractive returns

  • 1 of the most valuable Internet startups in the world – Collective

  • $37M funding in BeyondTheRack that reaffirmed our commitment to eCommerce (further building on our investment in  Well.ca)

  • $23M financing from a world class syndicate of investors in Fixmo (a company we seeded)

  • 2 gaming companies continued their rapid growth, with Gamerizon (16 million downloads) raising $5M and Woozworld (16 millions virtual spaces created) raising $6M.

  • 1st Y Combinator alumnus company, Vidyard – an investment that also fits perfectly alongside AppDirect in our belief around the consumerization of enterprise applications.

  • 7 co-investments with Greycroft Partners, 3 each with Rho Canada, Panorama Capital and Metamorphic Ventures and 2 with Accel Partners.

  • 3 investments with each of seed stage Real Ventures, Extreme VP and SV Angel as well as helping launch Growlab with amazing partners and co-investors.

In the same vein as what we tell our companies, we don’t see this funding announcement as an affirmation of our past success, but rather an opportunity to prove what we are really capable of accomplishing. Like any growing company, we are improving over time. There are natural “flywheel” effects in venture capital, which we are leveraging as our network keeps getting stronger. We have a growing number of successful existing investments. Failures continue to teach us. We have come a long way since 2002, and look forward to working with a new group of entrepreneurs in iNovia III to see what we can accomplish next. In the meantime, we want to thank the entrepreneurs who have chosen to work with us and our investors that believe in our team and vision.

- The iNovia Team

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