Promutuel Insurance has announced that it is investing in Portage Ventures’ third venture capital fund.
Portage Ventures III is specifically designed to propel start-ups in the fields of financial technology (fintechs), insurance (insurtechs) and wealth management.
This investment enables the insurer “to be on the lookout for innovative and emerging solutions developed by bold entrepreneurs who are keen to challenge the insurance and finance ecosystem,” the firms stated in a joint press release on March 23.
Promutuel CEO Geneviève Fortier notes that this investment will allow the insurer to identify and invest in new technologies that can accelerate the development of the firm’s products and services offering, and meet the ever-changing needs of its members.
“This strategic investment is perfectly in line with the profitable growth strategy we have adopted,” she says.
In just over five years, Portage Ventures has become one of the world’s leading early-stage venture capital investors in financial technology, with 62 portfolio investments in 13 countries as of December 31, 2021. At that date, Portage had an estimated US$3.3 billion in assets under management.
Portage’s investors include the Caisse de dépôt et placement du Québec, the Public Sector Pension Investment Board and Eldridge.
Adam Felesky, co-founder and CEO of Portage Ventures, views the arrival of “a well-reputed company” like Promutuel Insurance as great news for start-ups looking to redefine the insurance and financial industry in the coming years.
Over US$600 million
On March 10, Portage stated that it had already raised more than US$616 million in funding for fintech companies in the United States, Canada and Europe.
On the same day, the fund announced that Canadian retail investors could invest in its portfolio through Grayhawk Investment Strategies. The current round of financing is expected to close in April 2022.
The five largest investments made by Portage with Funds I and II, in order of market value, are with Wealthsimple, KOHO, Clark (Germany), Albert, and Alpaca (in the US).
In its March 10 press release, Portage mentioned that the most recent institutional investors to join the ranks of Fund III shareholders were HarbourVest Partners, Kensington Capital Partners and Meridian Credit Union.
Insurers on board
Many financial institutions, including several insurers, invested in Portage Ventures’ second fund. Portage Ventures is the venture capital arm of the alternative investment firm Sagard. The firm’s Co-founder and Executive Chairman is Paul Desmarais III.
