Northside Ventures Targets $30 Million for Second Early-Stage Fund
Toronto-based firm aims to bridge the Canadian pre-seed funding gap with institutional backing.
1Fundraising and Strategic Expansion
Toronto-based Northside Ventures has launched its second venture capital fund, targeting $30 million USD to support early-stage Canadian technology founders. The firm has already secured $17 million USD across two closes, surpassing its inaugural $11 million fund. This capital will allow the firm to increase its average investment size per startup.
2Institutional Angel Investment Model
Founder Alex McIsaac describes the firm’s strategy as an institutional angel investor, combining the resources of a traditional VC with the speed of an individual investor. The firm frequently backs entrepreneurs before they have established products or bank accounts, focusing on high-conviction bets at the very inception of the founder journey.
3Increased Deployment and Reserves
With Fund II, Northside intends to deploy $500,000 USD per startup, more than doubling the $225,000 average from its first fund. The firm also plans to increase its reserves for follow-on investments to 20 percent. The goal is to back a total of 40 companies, representing an increase of 10 firms over Fund I.
4Key Institutional Backers
The second fund is co-anchored by CIBC Innovation Banking and Intact Private Capital. Additional support comes from TD Innovation Partners and existing backer Bain Capital Ventures. These institutional partners emphasize the necessity of a healthy early-stage market to foster the growth of future large-scale Canadian technology companies and the broader innovation ecosystem.
5Focus on Frontier Technologies
While maintaining a broad sector focus, Northside is prioritizing AI applications, AI infrastructure, and frontier tech, including robotics and defense. McIsaac identifies the latter as the firm's fastest-growing category. The firm remains committed to backing Canadian founders regardless of whether they are building their companies within Canada or the United States.
6Proven Track Record
Northside’s first fund backed 30 companies over three years, with a portfolio split evenly between Canadian and US-based operations. Nine of these firms have already raised priced rounds at higher valuations, while 12 secured additional capital via simple agreements for future equity. These results have solidified McIsaac’s confidence in the firm's thesis.
7Operational Growth and Sourcing
The firm has expanded its team to six members, including a new full-time investment professional and two engineers. These engineers maintain an internal AI-driven sourcing product to manage the pipeline. Additionally, a scout program involving students from universities like Waterloo and Toronto serves as a critical source of deal flow for the firm.
8Future Market Outlook
McIsaac argues that Canada continues to face a scarcity of domestic institutional capital for pre-seed startups compared to the US market. By accelerating its investment pace—having already made a dozen investments since early 2026—Northside aims to prove that early-stage conviction is essential for building an enduring, high-performance venture capital firm.
Original article: BetaKit — Northside Ventures Targets $30 Million for Second Early-Stage Fund