Vention Secures $150 Million in Quebec’s Largest Venture Investment
The Quebec government’s investment arm, Investissement Québec, has made a significant move in the venture capital landscape, leading a financing round of $150 million for Montreal’s Vention Inc., an industrial automation firm. This deal marks the largest venture capital investment in Quebec to date and showcases the province’s robust support for technology development.
Investissement Québec’s Role
Investissement Québec contributed $55 million to the total funding. This investment is part of a broader strategy; over the past decade, the organization has allocated $800 million in venture capital to support Quebec’s thriving tech ecosystem. Notable companies funded by Investissement Québec include Lightspeed Commerce, Coveo Solutions, and AlayaCare.
Vention’s Unique Market Position
Founded a decade ago and led by Etienne Lacroix, a former McKinsey consultant, Vention has distinguished itself in the factory automation sector. The company offers a vertically integrated model that combines parts supply, hardware design, e-commerce, and 3D computer-aided design software. It serves engineers in over 4,000 factories across 30 countries, including prominent clients like Toyota, General Electric, and Tesla.
Key Features of Vention’s Offerings
- Online platform for creating and ordering custom equipment.
- Supply of proprietary metal building parts and third-party robotics components.
- A library of thousands of ready-made designs contributed by users.
Funding Details and Future Plans
This recent financing round includes approximately $20 million secured as debt. Notably, all funds were directed to Vention, unlike many recent tech funding rounds that involved secondary investments. The company is now valued at over $1.2 billion after surpassing $100 million in annual revenues.
Focus on Research and Development
Vention plans to utilize part of the capital raised to enhance its research and development initiatives, particularly in areas like design, simulation, and AI for autonomous robots. The firm aims to improve its profitability while expanding its operations, particularly in Europe, which currently accounts for 20% of its sales.
Investment Landscape in Quebec
The venture capital climate in Quebec continues to evolve. While tech valuations have generally decreased since late 2021, Vention and similar companies in artificial intelligence and quantum computing have experienced notable exceptions. This alignment of innovative companies with strategic investments from local sources is vital for fostering business growth and retaining talent in the region.
Lacroix emphasized the importance of Canadian investment, with over 75% of this funding coming from domestic sources. “We wanted to ensure Vention stays Canadian forever,” he stated, reflecting the company’s commitment to its roots.
