The firm Boreal Ventures has secured a $43 million CAD first close for its second seed fund as it works toward a total target of $60 million.
The fund will support early-stage Canadian business-to-business technology startups, with investments focused on companies developing scalable products across sectors such as artificial intelligence, industrial technology, financial technology, digital health, and manufacturing. The launch also coincides with leadership changes, as former Lightspeed Commerce president and chief revenue officer JD Saint-Martin joins the firm as co-managing partner alongside Boreal founder David Charbonneau.
What The Company Does
Boreal Ventures is an early-stage venture capital firm focused on backing Canadian technology startups at the seed stage. The firm concentrates on companies developing capital-efficient business models, particularly in the business-to-business software sector.
Through its second fund, Boreal plans to support startups that have already demonstrated early product-market fit and are preparing to scale their go-to-market strategies. The investment strategy prioritizes vertical software-as-a-service platforms and technologies that address operational challenges across industries such as manufacturing, finance, healthcare, and industrial systems.
The fund aims to support founders not only with capital but also with operational guidance around commercialization, an area often identified as a challenge for Canadian technology companies transitioning from product development to market expansion.
With the launch of its second fund, Boreal now manages more than $80 million in assets across two investment vehicles.
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Market Context / Industry Background
The new fund is being raised during a difficult period for venture capital fundraising in Canada. Industry data indicates that 2025 marked the weakest year for Canadian VC fundraising since 2016, reflecting broader global market caution and tighter capital conditions for early-stage startups.
In this environment, venture firms are increasingly focusing on capital efficiency and measurable market traction when evaluating investments. Boreal’s strategy reflects this shift by targeting companies that have already demonstrated early validation of their products and are preparing to scale commercially.
The firm has also refined its investment focus since launching its first fund in 2021. While its initial vehicle emphasized deep technology startups, Boreal has since expanded its attention to software companies serving traditionally underserved industries, including sectors often described as blue-collar or operationally intensive.
These industries have increasingly become targets for digital transformation, particularly through specialized vertical software solutions that address industry-specific workflows.
Founder / Investor Commentary
David Charbonneau, founder and co-managing partner at Boreal Ventures, said the second fund is designed to help address a common structural challenge in Canada’s startup ecosystem.
“Canada builds exceptional products, but commercialization remains a key challenge and can limit the growth potential of many promising companies,” Charbonneau said. “Fund II is designed to help address this gap, and JD Saint-Martin will play an important role in that effort.”
Saint-Martin brings operational experience from the Canadian technology sector. Before joining Boreal, he co-founded Chronogolf, a golf course management software platform that was later acquired by Lightspeed Commerce. Following the acquisition, he joined Lightspeed and eventually served as chief revenue officer and president.
At Boreal, Saint-Martin is expected to support portfolio companies in building scalable revenue strategies and strengthening go-to-market execution.
Growth Plans / Use Of Funds
Boreal Ventures plans to deploy capital from its second fund across Canada, with particular attention to startups based in Québec and other regions that have historically received less venture investment.
The firm will target companies developing vertical SaaS platforms as well as startups working in areas including artificial intelligence, industrial technology, financial technology, digital health, and manufacturing systems. These companies are typically expected to demonstrate early traction and readiness to expand their commercial operations.
Limited partners participating in the fund include several returning institutional investors. These include the Government of Québec through Investissement Québec, BDC Capital, the La Caisse-backed Fonds québécois d’amorçage Teralys, and Capital régional et coopératif Desjardins. Lightspeed founder and CEO Dax Dasilva is also participating as a limited partner in the fund.
Boreal’s current portfolio includes a range of Canadian startups such as Montréal-based gym management software company FLiiP, background check technology provider Trustii, and nicotine addiction treatment developer Ditch Labs. The firm has also invested in Québec City-based Femtum, which develops laser technology for semiconductor manufacturing.
About Boreal Ventures
Boreal Ventures is a Canadian early-stage venture capital firm focused on seed investments in technology startups. Founded in 2021 in Montréal in partnership with deep-tech incubator Centech, the firm supports companies building scalable software and technology solutions for industrial and operational sectors. Boreal Ventures manages more than $80 million in assets and invests across Canada with a focus on capital-efficient business-to-business startups.
