White Star Capital has unveiled a new North American Seed Fund with an initial close of $25 million US and a goal of reaching $50 million US. The fund’s purpose is clear: fill a critical gap in Canada’s venture capital ecosystem by stepping up as a lead investor in pre-seed and seed rounds.
Anchored by Fonds de solidarité FTQ, the fund also secured commitments from Capital régional et coopératif Desjardins, Fonds québécois d’amorçage Teralys, and TD Innovation Partners.
General Partner Sanjay Zimmermann, based in Toronto, noted that many promising Canadian founders have interest from investors but struggle to secure a lead cheque. “The missing piece” he said, is often a backer willing to commit more than $1 million.
Co-leading the fund with Zimmermann is Catherine Ouellet-Dupuis in Montréal. Together they view a “golden triangle” of Montréal, Toronto, and New York as the ideal nexus for supporting entrepreneurs both locally and globally.
A third general partner based in New York is expected to be announced to complete the leadership team.
White Star plans to write initial cheques ranging between $500,000 and $2 million USD, with follow-on capital reserved for top performers as they move toward Series A and beyond. The firm anticipates building a portfolio of approximately 30 companies, with a tilt toward software startups in sectors such as automation, cybersecurity, healthtech, and the sustainable economy.
Founded in 2014, White Star Capital has raised three prior early-growth funds and launched a digital asset fund. With over $1 billion in assets under management, it has backed more than 100 companies globally. In Canada, it has invested in 14 startups with six exits to date.
The fund arrives at a time when early-stage capital in Canada is scarce. With institutional backing and a mandate to lead rounds, White Star’s fund could help unlock startup momentum and drive growth among emerging innovators. Its global footprint further equips Canadian founders with pathways into the US and beyond.
