One of Vancouver's best-known venture capital firms has raised fresh capital to invest in the next generation of startups, betting that some of the biggest technology opportunities of the coming decade will emerge from AI, robotics, biology, and rapidly growing markets outside North America.
Version One Ventures announced this week that it has closed two new funds: a $78 million USD flagship fund and a $30 million USD opportunities fund, giving the firm $108 million USD in new capital to deploy into early-stage companies.
For founder and managing partner Boris Wertz, the announcement represents more than just a new fundraise. It is a chance to position the Vancouver-based firm for what he sees as a period of unusually rapid technological change.
"Some of the largest platform shifts of our careers are happening simultaneously across AI, robotics, biology, and decentralized systems," Version One wrote in announcing the funds.
While many venture firms have built their reputations around a specific sector, Version One has long taken a broader approach, moving between technology waves as new opportunities emerge. Over the years, the firm has invested in areas ranging from software and marketplaces to crypto, and now increasingly AI and deep tech.
"The best returns come from funds that are investing alongside technology trends and waves," Wertz told Vancouver Tech Journal over video call. "Hopefully they're early in that before the mainstream is there, before it gets too competitive and before valuations go too high."
That philosophy is reflected in the firm's current areas of interest, which include AI infrastructure, robotics, physical AI, biology, and emerging startup ecosystems such as India. Wertz said the firm has spent years building relationships in India and believes the country is producing some of the most ambitious founders it encounters globally.
"We found some of the best, most ambitious, sophisticated entrepreneurs there," he said.
The new funds arrive at a time when venture investors are navigating a rapidly changing market. Artificial intelligence has created enormous excitement—and competition—around startup investing, while forcing founders and investors alike to adapt more quickly than in previous technology cycles.
"It's harder than ever for a company to just stay on top," Wertz said. "You need to reinvent yourself every two or three years."
The changing landscape is also influencing how Version One thinks about follow-on investments. The firm's new opportunities fund will allow it to continue backing its most promising portfolio companies as they grow, although Wertz noted that identifying future winners has become more challenging as markets evolve faster than before.
The announcement comes as Version One continues to build on a track record that includes investments in companies such as Coinbase, Ada, Shippo, and Vancouver-based Moment Energy, which recently opened a large battery manufacturing facility in Metro Vancouver.
Despite the firm's optimism about emerging technologies, Wertz expressed concern about the state of Canada's startup ecosystem. He believes the country is producing fewer breakout companies than it did several years ago, citing factors including talent migration to the United States, reduced ecosystem density following the pandemic, and the gravitational pull of San Francisco's AI sector.
"There was a time where it felt like every year there were five or six really interesting startups coming out of Canada," he said. "That has largely been reduced."