La Caisse and Desjardins Group launch fintech and AI in finance fund
Canada’s la Caisse de dépôt et placement du Québec and Desjardins Group have set up an investment fund dedicated solely to the fintech sector and to artificial intelligence (AI) applied to finance.
It is based in Montreal, with the purpose of “supporting the growth and development of new fintech companies in Quebec and Canada”.
The fund will operate independently and is expected to have a maximum size of CA$75 million ($60 million). La Caisse and Desjardins will invest equal amounts totalling CA$50 million ($40 million).
The two parties say other institutional investors have already expressed interest in joining before the first closing, which is expected by the end of the year.
The fund will target companies that develop technology affecting investments, payments, client acquisition and retention, data analysis, deposits and loans, security or insurance.
Companies will need to demonstrate that they possess:
- experienced entrepreneurs;
- an adaptable business model;
- a competitive product that is already generating interest and targets large markets.
“With its high concentration of talent in IT and the robustness of its financial industry, all the pieces are in place for Quebec to see the emergence of a first-rate fintech industry,” states Pierre Miron, chief operations and IT officer, la Caisse.
“This new fund is very timely. Not even two weeks ago, the Brookfield Institute ranked Montréal in first place in Canada for its concentration of jobs in the high-tech sector,” says Guy Cormier, president and CEO, Desjardins.
“This support for fintech will enable our financial sector companies to be world-class pioneers, particularly with regard to customer experience and competitiveness with the giants that are moving into our industry.”