We invest with purpose

About > Investment Principles

PURSUING HIGH-PERFORMING FUNDS

Teralys's goal is to serve entrepreneurs by providing value-added capital that effectively supports the development of their innovative companies.

As Canada's largest innovation-focused fund of funds, Teralys Capital seeks the highest-performing venture capital funds — those capable of engaging in the development of our local ecosystem and supporting our best technology companies.

We invest primarily in Canadian venture capital funds focused on the early stage or growth of high-growth innovative technology companies in information technology, life sciences, and green or industrial innovations.

These private funds are right-sized to their strategy and sector. They align the interests of limited partners, general partners, and other stakeholders. They work with private and international investors — either directly in the fund or as co-investors in portfolio companies. Combined, these funds bring sector expertise, operational experience, industry partnerships, and international networks to deliver strong financial returns. Their managers also recognize the intrinsic value of diversity and commit to promoting and implementing diversity principles.

OUR SEVEN INVESTMENT PILLARS

To maximize financial returns while building a sustainable ecosystem capable of supporting growth, every fund selected by Teralys Capital must meet seven fundamental investment pillars:

Optimal fund size to execute and sustain the investment strategy

Managers with strong operational and entrepreneurial expertise

Strong alignment of interests between investors and managers

Global reach with international partners and investors

Access to corporate and strategic partners

Demonstrated and expected financial returns

Long-term commitment to diversity

KEY ALLOCATION METRICS

Teralys Capital's investment strategy is to build a balanced ecosystem while maximizing returns. This means investing in diversified portfolios of venture capital managers. Based on Teralys's decade-plus of investment and VC management experience, and given the current Canadian market environment, the key allocation metrics are:

Allocation to IT

Closely matches Canadian investment activity in each key sector that meets our return objectives: information technology (55%); life sciences (35%); green or industrial innovations (10%).

Allocation to seed and early stage

A balanced approach across the full financing chain at every stage of development and growth: seed and early-stage funds (65%); later-stage funds for growth, expansion, and buyouts (35%).

Allocation to Canada

Selecting venture capital funds — based in Canada or abroad — that show the ambition, capacity, and experience to support the growth of Canada's leading innovative companies through their unique expertise and value-added network.

Allocation to co-investment

An investment strategy primarily allocated to funds of funds, supplemented by direct co-investments in Canadian companies alongside our partner funds — leveraging our unique expertise in monitoring underlying companies and our in-house direct-investment sector specialists.