Plaza Ventures

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Plaza Ventures
Industry Venture Capital
Founded 2008
Headquarters Toronto, Ontario, Canada
Key people
Robert Richards, Daniel Brothman, Matthew Leibowitz, Daniel Israelsohn
Website plazaventures.ca

Plaza Ventures is a Canadian venture capital firm based in based in Toronto, Ontario. Plaza Ventures focuses on growth-stage technology investments, providing capital to tech companies that have moved beyond the seed stage. The firm is notable for being the first Canadian venture capital firm to address the growth capital gap in the Canadian venture capital ecosystem from the perspective of the private investor.[1]

Plaza Ventures was founded in 2008 by Robert Richards and Daniel Brothman. The partnership also includes Matthew Leibowitz, who currently serves as Vice President of the Canadian Venture Capital and Private Equity Association.[2] Plaza Ventures is affiliated with Plazacorp, one of Canada's notable high-rise condominium developers.[3]

History[edit]

Plaza Ventures first emerged as a professionally managed deal club for Plazacorp principals and associated private investors. The firm initially focused on early-stage and seed investments. In 2011, Plaza Ventures recognized the gap in post-seed stage growth capital, which is now well-documented and estimated to be at CA$1 billion and growing at $250 million each year.[4] Plaza Ventures pivoted to help fill this gap in 2012. The firm now focuses on making growth-stage investments in Series A or B rounds and beyond.[5]

Investment Philosophy[edit]

Plaza Ventures is notable for its unique micro-fund structure. As a form of risk mitigation and in line with its preference for proven businesses, Plaza Ventures concentrates the investments from each of its funds in only a small handful of companies. By investing strictly in companies with proven market traction, the firm shifts its portfolio from speculation risk to execution risk. Each fund allocates capital to follow-on investments for portfolio companies in previous funds, providing a continuously available stream of discretionary growth capital. This lowers the risk of investments made in subsequent funds.[6] The nature of this cascade effect means exit events occur more often and more quickly, allowing Plaza Ventures to provide investors with a significantly shorter fund life than traditional venture fund models. This makes the firm particularly friendly towards family offices and private individuals.[7]

Plaza Ventures focuses on the technology industry, although it is sector-agnostic within the industry. The firm's portfolio has a concentration in enterprise software-as-a-service, the internet of things and digital media.[8] As part of the firm's growth-focused thesis, potential investments must meet minimum revenue thresholds and exhibit proven market fit to be considered.[9]

Investments[edit]

  • 411.ca
  • ContactMonkey
  • Encycle Corporation
  • FanXchange
  • GuestDriven
  • Locationary
  • Miovision Technologies
  • MMB Networks
  • Mobify
  • PostBeyond
  • Poynt App
  • Peeks Social
  • Q4
  • StackAdapt
  • SweetIQ Analytics[10]

Ecosystem Affiliations[edit]

Plaza Ventures is involved in growing the Canadian entrepreneurship and startup ecosystem. The firm's partnership provides direct support for ecosystem groups including the Canadian Venture Capital and Private Equity Association, Canada's national venture capital and private equity collective;[11] the MaRS Investment Accelerator Fund; ventureLAB, a Canadian incubator;[12] The Next 36, a national entrepreneurship training program;[13] the Business Development Bank of Canada; NEXT Canada, a non-profit innovation and entrepreneurship program,[14] and the Toronto Atmospheric Fund, an investment initiative aiming to reduce local greenhouse gas and air pollution emissions.[15]

References[edit]

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External links[edit]

  1. ^ "The Canadian Growth Gap Needs Private Capital". NACO. Retrieved June 28, 2017. 
  2. ^ "CVCA Governance". CVCA. Retrieved June 28, 2017. 
  3. ^ "Plazacorp Ventures Company Profile". Bloomberg. Retrieved June 28, 2017. 
  4. ^ "Canada’s late-stage ventures held back by growing capital gap: study". PE Hub. Retrieved June 28, 2017. 
  5. ^ "Plaza Ventures Investments". Crunchbase. Retrieved June 28, 2017. 
  6. ^ "Plaza Ventures Fund IV LP". Crowd Matrix. Retrieved June 28, 2017. 
  7. ^ "Investment Partners". Plaza Ventures. Retrieved June 28, 2017. 
  8. ^ "Plaza Ventures Portfolio". Plaza Ventures. Retrieved June 28, 2017. 
  9. ^ "Entrepreneurs". Plaza Ventures. Retrieved June 28, 2017. 
  10. ^ "Plaza Ventures". Crunchbase. Retrieved June 28, 2017. 
  11. ^ "Government Relations Committee". CVCA. Retrieved June 28, 2017. 
  12. ^ "Executive Profile - Matthew Leibowitz". Bloomberg. Retrieved June 28, 2017. 
  13. ^ "Entrepreneurs - Matthew Leibowitz". NEXT Canada. Retrieved June 28, 2017. 
  14. ^ "Our Advisors". NEXT Canada. Retrieved June 28, 2017. 
  15. ^ "Board and Committees". TAF. Retrieved June 28, 2017.