Revving up investment in MB tech startups

Like any good company founder, Iain Crozier has identified a gap in the market and is trying to fill it.

Crozier established Trillick Ventures Inc., Manitoba’s first early stage venture capital fund. The keystone province historically receives fewer than one per cent of Canadian venture capital investment and Crozier wants to change that.

“We need to invest in Manitoba businesses for the growth of our economy and investing in our tech startups is a terrific way to do that,” he said.

The initial fund closing was Feb. 19, followed by a second close March 7. Trillick has raised nearly one third of a planned $15 million. Eighteen people have invested in the fund, which has invested in three companies so far.

The fund seeks to make pre-seed and seed investments into 20 to 25 technology startups, with 25 per cent of total funds reserved for follow-on investments, doubling down on the best performers. The fund will invest $10 million into exceptional Manitoban founders, according to Trillick’s website, with the other $5 million available to invest in the best opportunities found nationwide.

Born and raised in Winnipeg, Crozier moved to Southern Ontario when he was 17 to study at Western University. Afterward, he worked in Toronto for his family’s business, Crozier Enterprises, a playground equipment manufacturer.

Crozier then worked as a business coach and consultant and co-founded Taistr, a wine recommendation platform. He moved to Calgary in 2021 to pursue the venture and eventually joined the city’s tech and innovation hub, Platform Calgary, where he coached early-stage founders.

In 2023, Crozier, his wife and their four children moved to Winnipeg to be close to extended family. When he met with business founders in the province, many expressed to him that raising capital was challenging.

A recent report by CBRE, one of the world’s largest commercial real estate services and investment firms, named Calgary as the fastest growing tech talent hub in North America — and Crozier says he got to witness that growth firsthand.

“Being in Calgary from 2021 to 2023, I got a front-row seat to see how that community really grew into the fastest growing tech community in North America and I thought we could absolutely replicate that here in Manitoba,” he said. “And what we need is more investment into our Manitoban startups.”

Crozier started Trillick, which is named after the village in Northern Ireland where his paternal grandfather grew up, last fall.

When Sandra Foster found out Trillick would invest in seed-stage companies, the angel investor said she felt excited. She has since invested in the fund.

Foster said she has seen many visionary, hard-working entrepreneurs leave Manitoba in search of better opportunities. She hopes Trillick’s local investments will help create a scenario where those people stay in the province.

“Money is the fuel,” she said. “We’ve got the talent and we can have many, many more success stories coming out of Manitoba, which means more jobs and more economic prosperity for the province.”

Trillick is addressing a big need in the province, according to Ken Ross, chief executive officer of the Manitoba First Fund.

Created three years ago, and initially funded by then-PC government, MFF facilitates access to capital for Manitoba businesses in order to further their development, growth and success.

Its fourth investment was in Calgary-based Tall Grass Ventures, which specializes in agriculture technology startups; Ross said MFF is “probably close” to partnering with more funds that specialize in startups.

“I really would like to see Trillick succeed — there’s no question about that,” Ross said. “There is a good need and, along with Trillick, we’re trying with Manitoba First to find good, successful funds that will bring their capital and focus to Manitoba businesses.”

Crozier said Trillick will look at at least 200 companies before choosing 15 to 20 to invest in. The fund’s investment committee includes Mark Hlady, founder and CEO of SimpleHedge; Noah Palansky, co-founder and CEO of Taiv; and Saif Hashmi, co-founder and principal of the BDC Seed Venture Fund.

When choosing portfolio companies, Crozier said Trillick looks for a great idea that addresses a huge market with some sort of competitive advantage and has a great go-to-market strategy. Additionally, Crozier said, Trillick looks for founders who have character and are resourceful.

“Building a startup is really hard and it’s filled with highs and lows,” he said. “That’s why these intangibles are so integral. They need to have the character and the grit to see through the hard times.”

The fund has made three investments so far. They include Parallel, a shopping platform that uses artificial intelligence to blend fashion inspiration, community and shopping; and 3Common, a software company that provides everything event-driven businesses need to run and grow.

At the request of the founders, the third company is confidential for now, Crozier said.

As Trillick moves forward, it will look to recruit capital from other Canadian funds.

“We’re trying to bring capital from outside the province into our province to invest in our founders, which is integral for our economic growth,” Crozier said.

Crozier, Foster and Emily Franz-Lien, another leveraged partner, will talk about Trillick Ventures during a Tech Thursdays event April 10 at the King’s Head Pub in Winnipeg. The discussion starts at 5 p.m.

aaron.epp@freepress.mb.ca