La Caisse de dépôt et placement du Québec and
Desjardins Group have created an investment fund dedicated to the fintech sector and to the possible application of AI in the financial industry.
The yet-to-be-named venture capital fund aims to support fintech start-ups across Canada.
According to a release, the fund will operate independently and is projected to have a maximum size of $75 million. Both La Caisse and Desjardins will invest equal amounts totaling $50 million.
Reportedly, other institutional investors have already expressed their interest to pitch in before the first closing, which is expected by the end of the year.
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“. . . La Caisse and Desjardins recognize the importance of data to accelerate product development and marketing of new technology solutions,” a joint statement read. “The two sponsors have shown a willingness to provide the fintech companies that the fund invests in with data that will need to be handled as privileged and highly confidential.”
“With its high concentration of talent in information technology and the robustness of its financial industry, all the pieces are in place for Québec to see the emergence of a first-rate fintech industry. We strongly believe that this new fund will foster the development of new technology solutions that will significantly improve business processes and operational efficiency,” said La Caisse chief operations and IT officer Pierre Miron.
“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. 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,” commented Desjardins Group president and CEO Guy Cormier.
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