Investment fund for women-led startups on the march

WATERLOO REGION — The only early-stage venture capital fund in Canada for women startup founders is expanding with the help of several people from this region’s tech sector.

The Phoenix Fire Fund is money on a mission.

In March 2022 it announced it had raised $3.4 million in its first round. Phoenix Fire has 20 investors, including five women from this region. The fund makes early-stage investments that range from $125,000 to $250,000 in women-led startups.

In August it announced its first investment: a Vancouver-based startup called VoxCell BioInnovation, founded by Dr. Karolina Valente. VoxCell is all about getting cancer-fighting medications to market faster.

And now, Phoenix Fire is raising a second round of funds for early-stage investments.

Claudette McGown, one of the cybersecurity leads at TD, is among Phoenix Fire’s four general partners, and she’s aiming for more than the $3.4 million raised in the first round.

“Our goal is to do the same — plus, plus, plus,” said McGowan. “I feel we can achieve that, based on the interest that we have.”

It is a national fund, and the general partners cross the country looking for women-led startups with high growth potential and the ability to scale internationally.

In addition to investments, the partners provide mentors, access to networks and potential clients. Some partners are women who founded and led successful startups.

“They are really helping these entrepreneurs as women founders,” said McGowan. “We really enjoy what we are able to do, and build this opportunity pipeline for so many.”

The Phoenix Fire Fund is the brainchild of Danielle Graham, who several years ago created the Fierce Founders Boot Camp at Communitech.

Women-led startups receive about 27 per cent of early-stage investment in Canada. To help change that, Graham wants to keep the next round limited to 20 qualified investors who are willing to give more than money.

“We want to create a strong base of alignment, support and understanding between startup executives and successful founders who make up our partner base,” said Graham.

She expects the Phoenix Fire Fund to announce investments in three more startups over the next three months.

Graham, McGowan, Thealzel Lee and Diane Wolfendon are the general partners at Phoenix Fire. There are also 16 limited partners, or co-investors.

“It takes a lot of co-investors to fill the round and to apply their strategic analysis and deep-dive due diligence in order to assess the companies effectively,” said Graham.

“We have strong relationships across the region, and across the country that enables us to look into these companies and build relationships,” said Graham.

She wants the fund to do more in Waterloo Region, maybe partnership with incubators to help expand the group’s network in this region.

“We are all thrilled, everyone is excited,” she said.

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