Maple VC Closes $16.5M Seed Fund - Canadian Focus

Maple VC: Investing in the Canadian Diaspora

Based in San Francisco, Maple VC distinguishes itself through a focused investment strategy, as highlighted by its founder, Andre Charoo. The firm, established in 2016 with initial capital commitments of $1.2 million, recently finalized its second fund, securing $16.5 million. This new fund is dedicated to supporting Canadian founders, regardless of their current location or the specific nature of their ventures, provided technology is central to their business.

Andre Charoo’s Background and Vision

Toronto-born Andre Charoo gained early experience at Color, a photo-sharing application, and subsequently contributed to Uber’s expansion into Canada in 2011. He further refined his expertise over seven years as a VP at the hiring platform Hired, concurrently establishing Maple VC.

Charoo defines his approach as specializing in backing founders who originate from Canada. This targeted strategy has attracted significant interest from prominent investment firms.

Impressive Limited Partner Support

The new fund’s limited partners include notable names such as Tiger Global, Foundry Group, Recast Capital, Insight Partners, and Plexo Capital. Early successes from Maple’s initial fund also played a crucial role in securing these commitments, according to Charoo.

Addressing a Funding Gap for Canadian Founders

TechCrunch: Maple VC positions itself as the first fund exclusively focused on funding the Canadian diaspora at the seed stage. What specific needs of these founders are you addressing?

Andre Charoo: My personal experience reflects a common challenge faced by many Canadian founders. Despite being qualified for opportunities in the U.S., I encountered difficulties securing comparable positions in Canada.

Many founders who leave Canada share similar experiences – facing rejection domestically before achieving success with backing from leading Silicon Valley VCs. Marcelo Cortes, co-founder and CTO of Faire, exemplifies this, initially struggling to secure seed funding in Canada before achieving a $12.4 billion valuation after Silicon Valley investment.

The Evolving Canadian Startup Ecosystem

Isn’t there a noticeable shift between 2017 and 2021, influenced by alumni from Shopify and other successful Canadian exits? Where are you identifying emerging angel investors, and how do you collaborate with these networks to discover promising deals?

Interestingly, my perspective is from outside of Canada. I believe that some of the most promising founders have already left the country and may not be actively engaged with traditional Canadian angel networks or VCs.

Portfolio Highlights from the First Fund

Could you share some examples of companies from your first fund that particularly impressed prospective limited partners?

Our first fund included investments in All Day Kitchens, a restaurant technology company, and Vision, a biotech firm focused on automated nutrition tracking. RenoRun, a platform for construction material sourcing, and Aalto, a home marketplace later followed by Sequoia, were also key investments.

Additionally, Setter, a digital home management platform acquired by Thumbtack, has resulted in Maple becoming a shareholder in Thumbtack. To date, I’ve made 27 investments totaling $12 million across both funds, including SPVs.

Fundraising for the Second Fund

What was the process of raising capital for this significantly larger second fund like? Was it expedited by the current investment climate and your developing track record, or did it require a more extended effort?

The fundraising process varied. Some commitments were secured quickly, while others took up to a year to finalize. I’ve benefited from participating in diversity initiatives with LPs like Insight Partners and Alpaca VC.

Being a person of color has broadened my perspective as a VC, enabling me to identify unconventional opportunities and build a diverse portfolio. I’m proud that 70% of the founders I’ve backed are people of color, and at least 30% are women.

A Significant Investment in Sivo

Kate Hiscox, founder of Sivo, a debt-as-a-service provider, was a substantial bet for your fund, as discussed in a previous interview.

That’s correct. Sivo represents 20% of my fund, while typical investments range from $500,000 to $1 million. I have strong conviction in Kate’s capabilities as a founder and recognized the significant potential of her venture even before securing initial funding.

Investment Flexibility and Core Focus

Does Maple VC maintain the flexibility to invest in teams without Canadian founders?

While some LPs inquire about considering non-Canadian founders, my primary goal is to establish a leading seed-stage fund. I believe that focusing on founders with Canadian roots provides the most effective path to achieving this objective.