Round13 Capital

Round13 Capital is a Canadian venture capital firm based in Toronto, Ontario. The firm makes investments in proven Canadian companies that have still yet to reach their full potential, with a special concentration in vertical software, e-commerce, tech-enabled services, and disruptive retail businesses.

History

Founded in 2013 by Bruce Croxon and John Eckert, Round13 Capital is a venture capital firm that invests in growth-stage technology companies. The firm seeks out passionate and committed entrepreneurs open to innovative approaches with businesses that have a clear path to becoming breakout successes. Round13 Capital’s investment strategy usually takes the form of participating in funding rounds with other notable investors and investment institutions, such as Extreme Venture Partners and Relay Ventures, and focusing on deals in the range of $5-10 million​.

Round13 Capital has specialized in sectors such as vertical software, e-commerce, tech-enabled services, disruptive retail, and artificial intelligence. They target Canadian companies that have already established substantial market demand for their products. The firm’s approach includes hands-on involvement with its portfolio companies as a means to unlock greater strategic and financial value.

Round13 Capital is unique in the venture capital sector because it was founded with significant backing from a group of veteran entrepreneurs who have successfully built and exited companies of their own, creating significant shareholder value in the process. This network of business creators not only invests in Round13 Capital but also provides advisory support to the companies within its portfolio​.

In 2020, Round13 Capital announced the formation of two major new venture capital funds, increasing its assets under management (AUM) to over $325 million. These new venture funds, Round13 Fund II and Round13 Growth Fund, are aimed at supporting high-potential tech companies needing large capital infusions. In 2023, the firm announced a $200 million first close for its third venture fund, Round13 Fund III.

Presently, the firm’s portfolio includes partnerships with the following companies: RealServus, Gainful, PocketHealth, Alévole, Marz, Thinkific, Insidedesk, Article., TradeCafe, Nylas, Mysa, Statflo, Bold, TouchBistro, Juno, Purefacts, Lillio (formerly HiMama),​ Trusscore, RouteThis, Avanti, Sourced, Lane, Hubdoc, and Affinio, with the last four representing successful and lucrative exits. Round13 Capital has also made seed investments with and given startup advisory support to the following companies: Jiffy, Kivera, Athennian, Syst3m, Torinit, and Rails.

Historically, Round13 Capital participates in between two and six investment rounds annually. Over the years, the firm has built a sterling reputation based on its disciplined investment strategy and its commitment to building an enduring 100-year firm dedicated to creating long-term value for both its investors and the companies it supports.

Products and Services

Round13 Capital offers venture capital funding to early and growth-stage companies mostly operating in the tech sphere, with specific funds like the Round13 Founders Fund and Round13 Growth Fund. Beyond that, the firm provides strategic guidance, business development, operational support, and talent acquisition assistance to the companies within its portfolio.

Financial Performance

Since its inception in 2013, Round13 Capital has effectively raised three major funds, with each fund attracting big commitments, reflecting strong investor confidence. Significant exits, exemplified by the acquisition of Wave Financial by H&R Block for CAD$537 million in 2022, have helped shore up the firm’s bottom line. In 2023, the firm announced the first close for its Round13 Fund III, totaling in excess of $200 million, which bolstered its overall assets considerably. As of 2024, Round13 Capital manages over $325 million in capital.