MaRS Software Ventures – Who’s Raising?
Join the MaRS Enterprise and Fintech Investor mailing list
The following companies in the MaRS Enterprise and Fintech network are looking for financing in Fall 2024. If you would like to receive more information about a venture for the purpose of investing, feel free to contact the companies directly via the intro link below.
Disclaimer: This newsletter is intended only for readers who qualify as an accredited investor under applicable Canadian securities law. This Newsletter is intended solely for the recipient of this email and should not be forwarded, quoted, excerpted, or referred to for any other purpose.
b-line
b-line offers an all-in-one building automation platform that leverages AI and IoT technologies to centralize property management into a single pane of glass. The platform automates access control, energy management, amenity booking, and space optimization, providing a comprehensive solution for asset managers and operators of all building types. b-line is onboarding three new clients per month across Canada and the United States.
Round: Seed
Amount: $5M CAD
Use: To expand the sales and tech teams, upgrade the current platform, improve user experience, and expand across Canada and the U.S. Funding will also help URCSI achieve 20x ARR in 3 to 5 years.
Carbonhound
Carbonhound is a SaaS platform that uses AI data collection to automate high-credibility climate impact reporting. This helps mid-sized businesses compete in regulated and greening supply chains and assists financial institutions in meeting increasingly granular regulatory reporting requirements. Carbonhound has generated over $400k in revenue and has achieved a 4x increase in customer values, revenue, and customer numbers over the last 12 months. The company is solidifying its reputation through relationships with high-integrity partners like EY and TSX, positioning itself as the go-to supplier for public companies in Canada.
Round: Seed
Amount: $3M CAD
Use: 50 percent will be earmarked for product development, focusing on the AI data automation platform to reduce data barriers and create decarbonization recommendations to help businesses meet targets.
Careteam Technologies
Careteam Technologies is an award-winning digital health company tackling the challenge of care gaps. Sold as SaaS to health teams, Careteam’s AI-enabled platform optimizes care for complex chronic health conditions. The platform is enterprise-ready and currently in revenue, with 10 best-in-class customers in health and pharma, including the recent addition of Trillium Health. There is strong evidence supporting the need for integrated, proactive care across the health system to support people with complex chronic conditions..
Round: Seed
Amount: $2.5M CAD
Use: To go to market in Canada and the U.S. to generate revenue and optimize the sales engine, and to the product’s user success and predictive capabilities.
Codalio
Codalio’s proprietary generative AI-powered application development platform helps create scalable software with a 30 to 80 percent reduction in development costs and time. Codalio was recently selected to join Canada’s AI delegation at VivaTech in May 2024, received a Scale AI grant worth $50,000 to support product development, and was granted a $100,000 ElevateIP for patent filing. The company has received about $1 million of soft commits towards its $1.5 million raise.
Round: Seed
Amount: $1.5M CAD
Use: To be distributed as follows: 40 percent for R&D, 40 percent for sales and marketing, and 20 percent for operations, legal and patenting.
Collabogence
Collabogence is using AI to make the hybrid work model more effective. Hybrid organizations face several challenges: determining the necessary office space and its configuration, re-capturing lost collaboration, re-igniting innovation, and improving employee engagement and mental health. Collabogence has developed a unique approach by applying AI and machine learning to organizational data in a manner compliant with the EU AI Act and GDPR. The company has gained traction through participation in both the UTest and Vector Institute cohorts and has a lead investor on board.
Round: Pre-seed
Amount: $500k CAD
Use: To develop the platform to the point where commercial agreements can be signed by the end of 2024, positioning the company for a Seed round in Q1 2025.
Cove Neurosciences
Cove Neurosciences has developed software that generates measurable and precise biomarkers for brain diseases by processing brain activity data from MRIs and EEGs. This tool outputs interpretable measures of brain activity, used by medical researchers, pharmaceutical, and medical device companies for analytical purposes, such as determining drug efficacy or mechanisms of action in pharmaceutical clinical trials. The ultimate goal is to drive a precision-based approach to clinical neurosciences. Since January 1, 2024, the company has generated U.S.$200,000 in contracts, secured $250K in non-dilutive funding from competitive grants, signed four new clients, and has three new partnerships in progress.
Round: Pre-seed
Amount: $1.4M CAD
Use: To expand software’s capabilities, enhance the company’s precision-based approach, and support further growth in the clinical neurosciences sector.
Defang Software Labs
Defang Software Labs’ AI-enabled tool offers a novel Logical Application Model (LAM), allowing developers to focus on creating application logic while Defang automates deployment, security, configuration, and management. The cloud-agnostic LAM ensures that developers can write their applications once and deploy them to any cloud of their choice. Defang also features generative AI (Gen-AI) functionality, enabling even novice developers to generate production-quality cloud applications from simple text prompts. Defang closed its U.S.$1.2M Pre-Seed round in Q4 2023 and released a Public Beta in Q1 2024. This release included major features like BYOC (Bring-your-own-Cloud) and BYOD (Bring-your-own-Domain), allowing customers to use Defang with their own cloud accounts. The team is now focused on building V1 of Defang, targeted for release in Q4 2024.
🏢 Sector: Software
📈 Round: Seed
💰 Amount:$3M-$4M USD
📝 Use: To continue developing the platform, specifically towards the release of V1 in Q4 2024, enhancing product features, and scaling the team to meet market demand.
FrontFundr
FrontFundr is transforming private markets by streamlining the fundraising process for entrepreneurs and providing access to exclusive investment opportunities. The platform helps private companies raise capital from the public through its marketplace and B2B private markets platform. FrontFundr has achieved significant milestones including competing more than 175 capital raises, processing U.S.$150 million in funds, completing more than 22,000 investment transactions, welcoming more than 40,000 users into its community, overseeing 13 successful exit events for investors, and landing premier customers like TELUS.
Sector: Fintech
Round: Seed
Amount: CAD $2 million
Use: To support the development of post-raise shareholder management solutions, investing and portfolio management solutions, and expanding service models to include subscription-based revenue SaaS solutions. Additional investment will also boost sales and marketing efforts.
EmitIQ
EmitIQ serves as an AI co-pilot for businesses navigating the complexities of carbon removal and climate accounting. This innovative platform is tailored to meet the diverse needs of businesses of all sizes. To date, EmitIQ has raised $1.5 million and secured a significant $3 million offset contract with Sasol. The company already has paying customers and two investors committed to this funding round.
Round: Pre-seed
Amount: CAD $1.2 million
Use: To target a $1.5 million ARR by Q1 2025, focusing on customer acquisition, customer service enhancements, technological improvements and market expansion.
Qoherent
Qoherent specializes in AI development for software-defined radios, with a focus on enhancing the workflow for radio signal processing engineers and researchers within the space, defense, telecommunications and automotive sectors. Qoherent is currently working with two space agencies on advanced RF signal processing algorithms for radio resource management. Key achievements include $422k in revenue for FY23, the filing of seven provisional patents, and plans to release an MVP and an open-source project in Q2.
Round: Seed
Amount: CAD $3 million
Use: To support sales and marketing achieve over 50 users within target companies ($700,000); Secure $2 million in pilot projects; Formalize seven patent applications ($300,000); Expand the R&D team and accelerate the IP roadmap ($1.8 million); and support general operations ($200,000).
Brickeye
Brickeye is at the forefront of the construction technology sector, supporting companies with IoT-enabled job site monitoring, smart automations and data analytics solutions. As of March 2024, the Brickeye platform is actively used in more than 300 construction sites. The company has also established valuable partnerships with major builder risk insurance providers and brokers, utilizing IoT for enhanced site data, analytics and insights.
Round: Series B
Amount: CAD $15 million
Use: To support product development and strategic acquisitions.
Grain Discovery
Grain Discovery offers B2B2C white-label software designed to enhance the food supply chain. The platform offers comprehensive traceability for sustainable certification and a trading hub for farmer procurement and communication. With less than 3 percent of grain currently being traced, the market presents a massive, untapped opportunity. The agri-food industry is at a pivotal moment, driven by the urgent need to comply with new government mandates on sustainability and low-carbon regulations. Grain Discovery is expanding its traceability and carbon intensity software to address this growing demand.
Round: Seed
Amount: CAD $1.5M
Use: 65 percent of the funds will be used for hiring three sales members and two integration engineers to achieve an ARR of $1M by April 2025. The remaining 35 percent will be allocated to ongoing overhead costs.
Oxia Initiative
Oxia Initiative has developed a SaaS platform to assist companies of all sizes assess carbon footprint reports in accordance with international standards such as ISO and GHG Protocol. Additionally, Oxia Initiative offers two impact reporting services aimed at cleantech companies, focusing on avoided emissions and water impact. In 2024, Oxia Initiative achieved a 40 percent increase in revenue, attributed to signing new clients like AquaAction. The company is also engaged in pilot projects with EY and Novacap, and is in discussions for partnerships with Lightspeed and Fluent technologies.
Round: Seed
Amount: CAD $1.5 million
Use: To support marketing and sales efforts targeting the U.S. market (specifically California, New York, and Seattle), as well as platform development to enhance dashboard capabilities.
Korbit Technologies
Korbit is a generative AI code reviewer that detects over 10,000 issues from critical bugs and security vulnerabilities to code architecture and performance issues. It also trains software engineers to resolve them, helping teams ship code faster and better. Last year, Korbit closed U.S.$11.3 million led by Khosla Ventures, with daily usage by more than 100 developers for several months. Two investors have already committed to a $3 million CAD extension.
Round: Series A
Amount: CAD $5 million
Use: To build a GTM team and achieve the company’s ARR goals, as well as expand existing ML and engineering teams to improve the product and maintain its position as the leading code reviewer product.
Sprout Family
Sprout is on a mission to improve access to family-building care through employee benefits for fertility, surrogacy and adoption. Sprout’s offering includes a digital health platform to help employees reach their parenthood goals faster, paired with the administration of inclusive and flexible financial coverage. Sprout recently secured two major channel partnerships with large Canadian insurance carriers. These partnerships will launch in the next six months and provide $100k in up-front committed revenue plus access to more than 10 million covered lives. Sprout started the business in June 2023 and then built and launched our platform MVP by Dec 2024. They onboarded their first cohort of B2B beta customers in Jan 2024 and their first paid customer Mar 2024.
Round: Pre-seed
Amount: CAD $1.5 million
Use: To fuel the company’s GTM strategy, the successful launch of insurance carrier partnerships, and product investments like an AI strategy for treatment and outcomes data.
Pontosense
Pontosense’s wireless sensing solution is capable of detecting movements smaller than a grain of salt from 15 meters away. This solution is the only one on the mass market meeting strict automotive safety and home care requirements. Founded by engineers with over 500 patents and previous billion-dollar exits, Pontosense deploys its technology in automotive and home care scenarios. Clients include Toyota, VW, Tesla, VHA, State Farm, Verizon and many others.
Round: Series A
Amount: CAD $13 million
Use: To grow markets in Japan and Europe, and deploy more than 600,000 sensors to automotive and home industries, reaching over $20MM in annual revenue.
Autzu
Autzu is a mobility tech company aiming to develop the infrastructure needed to utilize, manage and control autonomous vehicles globally. Currently, each of Autzu’s vehicles saves about 36.53 metric tons of CO2 emissions per year, and Autzu looks to scale that value even further. Autzu has achieved over $32M in cumulative revenue and projects over $10M in annual revenue for 2024. Operating in San Francisco, Toronto and Ottawa, Autzu is looking to expand within the U.S. in 2024 (Los Angeles and New York) and globally in 2025.
Amount: CAD $41 million
Round: Series A
Use: To expand globally, hire top talent to drive the business globally, and develop cutting-edge infrastructure and technology for autonomous vehicle integration.
Softdrive
Softdrive is a cloud computing software redefining the personal computer. As businesses rapidly adopt new technologies, the lack of proper computer infrastructure becomes a major roadblock. Softdrive is solving this problem by providing a high performance cloud PC on any device. Whether its rendering, 3D modelling, word processing, video or photo editing, or just browsing the internet, their purpose-built software delivers seamless computing for businesses and consumers alike. Its current clients have experienced a significant boost in productivity and remote work capabilities. Notably, Softdrive stands out from its competitors by offering a 5x faster service, being 2x more cost-effective, and having a set-up time of less than 2 hours.
Softdrive has a MRR of $28k from 30 clients, including 4 enterprise organizations within their initial target market of architects, engineers, and construction. They have experienced an impressive 4x growth over the last 6 months. Their ACV is $12k, with proven expansion and a projected trajectory ACV of $200k.
Round: Seed
Amount: CAD $3 million
DISCLAIMER:
MaRS Discovery District and its related entities (“MaRS”) and each of their respective employees, directors, officers, agents, and representatives expressly disclaim any and all liability in respect of any information contained, referred to, or linked in this newsletter (the “Newsletter”), including but not limited to third-party content and/or websites or links, and including in the event that such information proves to be inaccurate, incomplete, or unreliable or contains a misrepresentation, or results in any investment by you, or results in a loss in connection with any investment or other losses or liabilities. For certainty, MaRS (and each of its respective employees, directors, officers, agents and representatives) shall not be liable for any claims in connection with your use of or reliance on the Newsletter or any information contained, referred to, or linked in therein.
The Newsletter does not purport to provide or otherwise constitute investment, financial, business, regulatory, or legal advice and it is acknowledged and understood that you will be responsible for and obtain your own independent professional advice in this regard. In providing the Newsletter, MaRS is not soliciting, advising in respect of, acting as an agent or finder or brokering any investments and does not and is not entitled to collect any fees, commissions, compensation, or other remuneration from any capital raised (if any) by the ventures featured in the Newsletter (collectively, the “Ventures”). Each of the Ventures operate autonomously, without influence by MaRS, and MaRS exercises no control or direction over their business and operations and makes no representations or warranties regarding the same.
MaRS does not guarantee the accuracy or completeness of the Newsletter and MaRS makes no representation as to the accuracy or completeness of the information contained in this Newsletter, particularly as it relates to third-party sources or market and industry data. The information in the Newsletter may be obtained from a variety of sources and is subject to change and MaRS has not independently verified any of the data from third-party sources, including any Ventures, referred to in the Newsletter, nor has it analyzed or verified any underlying studies or surveys relied upon or referred to in such sources. Third-party information and data is subject to variation and in many cases is difficult to independently verify due to limits on the availability and reliability of data inputs, the voluntary nature of the data gathering process and other limitations and uncertainties. The Newsletter is provided for general information purposes only and does not constitute an endorsement, recommendation, evaluation, valuation, opinion or other advice with respect to any Venture, or any investment strategy, investment in or investment decision in respect of any Venture, or an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument. Your use of the Newsletter is at your own risk.
YOUR SUBSCRIPTION TO AND USE OF THIS NEWSLETTER CONSTITUTES YOUR ACCEPTANCE OF THE ABOVE TERMS.