Radical Ventures holds first close of over $1 billion for late-stage AI fund

Commitments came from PSP Investments, CPP Investments, the Healthcare of Ontario Pension Plan, TD Bank Group, BMO Financial Group, CI Global Asset Management and OPTrust, along with other investors the firm did not name. Radical describes the vehicle as a multi-billion-dollar fund but did not disclose a target, BetaKit reported. According to the firm's release, the fund will back AI scale-ups in a market where the most valuable companies stay private longer and raise successive large rounds before listing.

The announcement was made at the Canadian government's inaugural Canada Investment Summit in Toronto. Co-founder and managing partner Jordan Jacobs framed the fund as a way to supply growth capital at a scale that keeps Canadian AI companies in the country as they expand. BetaKit, citing Canadian Venture Capital and Private Equity Association and PitchBook data, said the first close is roughly level with a 2021 fund from Georgian and would make the vehicle Canada's largest venture fund by a wide margin if Radical reaches its goal. Radical raised an $800 million growth fund in 2024, and its portfolio includes Cohere, Waabi and World Labs.