Today's News |
Vancouver-based Venture Capital Firm Campfire Capital Closes $41.1 Million Venture Capital Fund
Friday, October 21, 2016Company Profile | Follow Company
BDC Capital commits $8M to a new fund managed by emerging consumer products and retail VC, Campfire Capital
Vancouver, BC, October 21, 2016--(T-Net)--Vancouver-based venture capital firm Campfire Capital has closed a new $41.1 million venture capital fund focussed on technology-driven consumer products and retail companies, according to BDC Capital.
Campfire Capital (“Campfire”) is a relatively new venture capital firm investing in businesses innovating at the intersection of technology and retail (the company was founded in 2014).
The firm is financially backed by over 50 consumer and retail veterans with deep industry networks and expertise from major brands including lululemon athletica, Starbucks, Nike, Aldo, Zara, DAVIDsTEA and Nasty Gal, according to the company, including over 30 former and current lululemon executives, all of whom worked closely together to create value for lululemon during its high growth period from 2002 to the present.
BDC Capital announced it has committed $8 million to the new venture capital fund managed by Campfire Capital.
BDC Capital's commitment is part of the fundraising round leading to the fund's final closing at $41.1 million, which was disclosed last week.
This is the debut fund for Vancouver-based Campfire Capital, whose approach to venture capital goes well beyond traditional financial backing.
Portfolio companies also gain access to the expertise provided by Campfire's extensive investor base, which features over 50 consumers products and retail sector founders, executives and leaders from across Canada and the U.S.
Campfire Capital is led by four partners: Brooke Harley, who was Director of Business Development at lululemon athletica from 2009 to 2014; Manica Gautam, who was on the investment team of Onex's midcap fund, ONCAP, from 2010 to 2013 and then on the fundraising team for Onex Partners until 2014; and two of the executives who led lululemon's transformational growth: Christine Day, CEO from 2008 to 2013, and John Currie, CFO from 2007 to 2015.
For BDC Capital, investment in Campfire Capital represented a “white space” opportunity.
“Very little venture capital has gone into consumer products and retail,” says Alison Nankivell, Vice President, Funds and Co-investments at BDC Capital. “We were looking for sector diversification for our portfolio of funds and this is a sector that deserved greater attention.”
Another of BDC Capital's goals with this investment was to support the emergence of a new Canadian venture capital fund manager. “BDC Capital has played a big role in Campfire Capital's development,” says Brooke Harley.
“Beyond the funding, BDC Capital provided industry data, best practices, strategic insights, and financial modelling for portfolio construction. We'll continue working together to ensure Campfire Capital grows into a leading institutional-grade investor in its chosen space.”
Campfire achieved its first closing in June 2015, attracting initial investments of approximately $13 million, alongside financial commitments from the four partners. Over 30 former and current lululemon executives participated in this first closing as did a number of successful Canadian entrepreneurs from the consumer and retail sectors, including David Segal (co-founder of DAVIDsTEA), Aldo Bensadoun (founder of ALDO Shoes), Andrew Lutfy (founder of Groupe Dynamite), Roger Hardy (founder of ClearlyContacts and SHOES.com) and Charles Chang (co-founder of VEGA).
A key component of Campfire Capital's overall investment thesis is its ability to lend operational support and expertise to portfolio company management teams through its network of investors in order to drive growth and ultimately create value for all Campfire stakeholders.
Campfire's thesis also includes capitalizing on the digital transformation of the consumer and retail markets and the explosion of purpose-led vertical brands that are first launched through online platforms. Small, agile, technology-driven companies are creating new brands that compete with market incumbents on passion and purpose, with innovative, functional and high-quality products. They also bring innovation to core retail functions including digital marketing, payment and logistics.
About BDC
BDC is the only bank devoted exclusively to entrepreneurs. It promotes Canadian entrepreneurship with a focus on small and medium-sized businesses. With its 110+ business centres from coast to coast, BDC provides businesses in all industries with financing and advisory services. Its investment arm, BDC Capital, offers equity, venture capital, and flexible growth and transition capital solutions. To find out more, visit www.bdc.ca.
About Campfire Capital
Campfire Capital (“Campfire”) is a venture capital firm investing in businesses innovating at the intersection of technology and retail.
We are passionate about identifying, and funding, North America's most promising purpose-driven startups with core values that inspire the world. Campfire is financially backed by over 50 consumer and retail veterans with deep industry networks and expertise from major brands including lululemon athletica, Starbucks, Nike, Aldo, Zara, DAVIDsTEA and Nasty Gal.
Our Vision: The future of venture capital is investor teams who have previously built successful disruptive, industry-leading companies together. These investor teams will come together to lend their capital and market-specific expertise and networks to the most compelling startups disrupting their industry.