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Golden Venture Partners Launches $40 Million Startup Investment Fund to Hunt Unicorns

$40 million is up for grabs among Canadian startups.

Golden Ventures Partners this week announced their second fund, GVP II, valued at $40 million. GVP, which invested in the last three Wattpad rounds as well as in Guardly and Top Hat Monocle, says the larger second fund will allow for an expansion of the team.

GVP’s initial fund invested 18 startups across North America over 3.5 years, including Apptentive, Navdy, and Snowball. The investment firm says its second round was oversubscribed but chose to cap it at $40 million to “remain squarely in the micro-VC market category” where it believes it can “add the most value.”

GVP II says it aims to lead or participate in seed rounds with investments up to $750,000, and $1-million-plus investments in later-stage companies, totalling investments in 25 companies by the end of the fund. The $40 million was led by Northleaf Venture Catalyst Fund with participation from BDC Capital.

“Our thesis has not changed,” says Matt Golden, founder of the fund. “With nearly 1.75-billion smartphone users expected globally by the end of 2014, and the behavioral changes that have followed, there has never been a market that matches mobile both in terms of size or innovation potential. We continue to focus on how mobile penetration will disrupt existing value chains or create entirely new ones, with a particularly strong eye towards mobile enterprise, mobile vertical marketplaces, mobile advertising and data, and mobile consumer opportunities including the Internet of Things.”

Golden told The Globe and Mail that there are many promising companies in the Toronto-to-Waterloo corridor that are “potential unicorns”—startups that reach the $1 billion valuation, a group that includes household names such as Dropbox and Spotify.