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Quebec’s Fonds de solidarité FTQ invests $7.5M in Mistral Venture Partners’ latest seed fund

November 28, 2024

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Mistral Venture Partners has secured a major institutional investor from Quebec for its latest seed fund as the Ottawa-based venture capital firm looks to make further inroads in Canada’s second-most-populous province. Montreal-based venture and development capital firm Fonds de solidarité FTQ announced this week it has invested $7.5 million in Mistral’s fourth fund. Created by Quebec’s largest union, the Fédération des travailleurs et travailleuses du Québec, in 1983, Fonds de solidarité FTQ has net assets of more than $20 billion. The organization said its investment in Mistral’s latest fund will allow the Ottawa firm “to anchor its presence” in Quebec. Mistral, which also has offices in Toronto and Los Angeles, focuses on funding early-stage software companies. The firm has previously invested in seven companies from Quebec, including Gatineau-based Foko Retail, which was acquired by Michigan’s Workforce Software in 2021. Fonds de solidarité FTQ executive Philippe P. Huneault said Quebec-based tech startups face “numerous challenges when it comes to raising capital.” He said the fund wants to build on Mistral’s track record in Quebec to help nurture more fledgling companies in the province. “As an established venture capital firm, Mistral has the expertise and influence in the technology industry to help the growth, both here and abroad, of high-potential companies,” Huneault said in a statement. “The technology sector needs to be supported by major investors such as the Fonds and Mistral.” Founded in 2014, Mistral Venture Partners is one of the National Capital Region’s most prominent venture capital firms. Its portfolio includes several well-known local software companies, including Klipfolio and Rewind. "We are thrilled to be partnering with The Fonds and further expanding our presence in Quebec,” Mistral co-founder and executive director Code Cubitt said in a statement. “The collaboration process has been incredibly smooth, and we’ve been extremely impressed by their professionalism and shared vision. We have been investing in the province for a decade and continue to be impressed by the talent and quality of Quebec-based entrepreneurs. We truly believe this partnership will lead to great success and are excited to see what we will accomplish together.”