Vancouver’s Active Impact secures $110M for its third fund to back climate tech startups, with focus on Canadian innovation and diversity-driven solutions.
Active Impact Wraps $110M Climate Tech Fund to Power Green Innovation
Vancouver-based venture capital firm Active Impact Investments has successfully closed $110 million CAD for its third climate tech fund, reaffirming its commitment to accelerating early-stage sustainability ventures in Canada and beyond.
Despite challenging market conditions, the firm opted to finalize the raise below its original $120 million target, choosing to deploy capital and stay focused on performance rather than extend fundraising efforts.
New and Returning Backers Fuel Expansion
Fund III is co-anchored by Northleaf Capital Partners and Fondaction, and brings in fresh institutional investors including Boann, Co-operators Corporate Venture Capital Fund, Deloitte Ventures, and InBC. The new fund is nearly double the size of Active Impact’s previous fund, signaling increasing confidence in Canada’s climate tech sector.
“We see Canada quickly emerging as a top destination for building climate tech companies,” said founder and managing partner Mike Winterfield.
From Seed Gaps to Sustainable Scale
Founded in 2018, Active Impact was created to fill a gap in seed-stage climate tech funding with an institutional-grade approach. Today, with over $180 million in assets under management, the firm has backed 39 startups, achieving seven successful exits through acquisitions.
Fund III will focus on areas such as:
- Circular and shared economies
- Clean energy and transportation
- Climate-focused infrastructure and carbon solutions
- Sustainable food and water innovation
Focus on Canada, Backing Founders with Vision
To date, $17 million from Fund III has already been deployed across seven startups including Canadian innovators Jetson, Skyward, RIPTK, and ThinkLabs AI, and U.S.-based C.Scale, Lumo, and Zeno.
The firm expects to invest in 18 more startups, primarily in Canada, with typical investment sizes ranging from $1 million to $4 million. Active Impact intends to lead rounds, help set valuations, and take board seats to stay actively engaged.
Canada’s Edge: Talent, Policy, and Diversity
Winterfield emphasized Canada’s competitive advantage: world-class, affordable talent, programs like IRAP and SR&ED, and a stable political climate. He also pointed to U.S. academic and immigration policy shifts as a driver of incoming talent to Canada.
“Diversity drives innovation,” he said. “When top minds from around the world collaborate freely, innovation thrives. That’s what we’re seeing in Canada.”
Next Steps for Canada’s Climate Tech Boom
Looking ahead, Active Impact encourages Canada to actively recruit global talent and support high-potential founders who want to scale sustainable solutions.
“Canada should be out courting the world’s best to build here,” Winterfield added.
With $110 million in fresh capital and a deepening talent pool, Active Impact is helping shape the next generation of climate tech leaders. Stay tuned to Maple News Wire for more stories on sustainable innovation and venture growth.
