Yaletown Partners has announced the first close of its latest venture capital fund, Innovation Growth Fund III (IGF III), with a total commitment of $100 million. This is the third and largest fund in their series, bringing Yaletown’s total active funds under management to approximately $600 million.
IGF III focuses on Yaletown’s Intelligent Industry thesis, investing in crucial digital infrastructure technologies, such as advanced analytics, edge computing, networking, and physical AI. These technologies are essential for the digital transformation of sectors such as energy, manufacturing, logistics, agriculture, and transportation, aiming to enhance productivity, resilience, and sustainability in these areas.
The initial close has attracted a diverse group of returning and new institutional investors, including pension funds, financial institutions, government investment corporations, Indigenous groups, impact investors, and family offices.
Yaletown’s Responsible Investment and Insights platforms remain central to their strategy, providing portfolio companies and partners with market intelligence and valuable connections. Through IGF III, Yaletown affirms its commitment to leveraging digital transformation to boost industrial competitiveness.
KEY QUOTES:
“We believe Yaletown’s approach to Intelligent Industry investing presents a compelling opportunity to generate strong returns while supporting Canada’s industrial transformation. Yaletown’s track record of identifying and scaling companies at the forefront of industrial and technological transformation aligns with our commitment to backing high-performing businesses that are shaping the future of the Canadian economy.”
Hanz Gin, Managing Director, BMO Capital Partners
“Yaletown’s continued focus on scaling Canadian technology companies with strong export potential—particularly in sectors like artificial intelligence, digital transformation, and climate-resilient technologies—aligns closely with EDC’s focus on helping mid-market Canadian firms grow and compete globally. We’re proud to support IGF III through this latest commitment, reinforcing a long-standing partnership and helping Canadian innovators deliver transformative solutions that open new trade corridors, boost productivity, and strengthen Canada’s global competitiveness.”
Lissa Bjerkelund, Vice-President, Investments and Mid-Market Lending at Export Development Canada
“We’re excited to deepen our relationship with Yaletown as they continue to advance high-impact technologies to benefit the entire ag and food ecosystem. IGF III is the kind of investment platform that generates ongoing innovation and productivity in agriculture, helping Canadian farmers and food processors continue delivering high-quality products to feed families across Canada and around the world.”
Adam Smalley, Managing Director, Farm Credit Canada Capital
“InBC is pleased to support Yaletown again through our investment in IGF III – our first subsequent commitment in a venture fund. Yaletown’s focus on the Intelligent Industry is advancing digital transformation and building future-ready industries across B.C. IGF II, which was one of InBC’s first commitments, has already backed a number of groundbreaking B.C. technology companies. We are excited for IGF III to continue this momentum scaling businesses driving innovation and economic growth in B.C.”
Heather Tanaka, Investment Principal at InBC
“We brought IGF III together in record time amidst one of the more complex funding environments in the last decade. We are deeply grateful to our IGF III investors for their confidence in our platform. Our conviction has never been stronger that investing in technologies enabling the digital transformation of asset heavy industries is the most scalable lever for accelerating industrial competitiveness and also positioned to deliver excellent returns.”
Salil Munjal, Managing General Partner at Yaletown
