Vancouver-based venture capital firm Yaletown Partners has announced a $100 million first close for its newest and largest fund, Innovation Growth Fund III (IGF III), with a target size of $250 million. The raise brings the firm’s total active capital under management to approximately $600 million.
IGF III is the latest in Yaletown’s “Intelligent Industry” series and the eighth fund in its broader portfolio. The fund will invest in digital infrastructure technologies—such as advanced analytics, edge computing, networking, and physical AI—designed to support the transformation of real-world sectors including energy, manufacturing, logistics, agriculture, and transportation.
The fund’s first close is backed by a diverse mix of investors including pension funds, financial institutions, Indigenous groups, government investment corporations, impact investors, and family offices.
“Yaletown's approach to Intelligent Industry investing presents a compelling opportunity to generate strong returns while supporting Canada's industrial transformation,” said Hanz Gin, managing director at BMO Capital Partners, a backer.
Export Development Canada, Farm Credit Canada Capital, and InBC are also among the fund’s early supporters. “We're proud to support IGF III… helping Canadian innovators deliver transformative solutions that open new trade corridors, boost productivity, and strengthen Canada's global competitiveness,” said Lissa Bjerkelund, vice-president at Export Development Canada.
Yaletown says its portfolio companies benefit from the firm’s Responsible Investment and Insights platforms, which offer real-time intelligence and curated connections to help founders navigate complex markets.
“We brought IGF III together in record time amidst one of the more complex funding environments in the last decade,” said Salil Munjal, managing general partner at Yaletown. “Our conviction has never been stronger that investing in technologies enabling the digital transformation of asset-heavy industries is the most scalable lever for accelerating industrial competitiveness.”