“A shared mission.” CIBC Innovation Banking backs Vessel, modernizing the funds it finances

Montreal-based Vessel finds an institutional partner with a shared vision.

It's no secret that venture capitalists are investing in AI-powered tools that automate workflows.

Thomas Terrats thinks they should use them too.

“Canada's future depends on the strength of our ecosystem,” he said. “We need very strong venture capital funds and private equity funds that can also raise capital globally. And if you want to raise capital globally, you need to be 2x better than American firms.”

To help improve the performance of general practitioners, he founded the Montreal-based Vesselan AI-powered fund and investor management platform that automates fundraising workflows, centralizes data, and delivers a customizable institutional-grade investor experience.

As fundraising tightens and expectations rise in the venture capital and private equity industries (resulting in many fund managers having to do more with smaller teams and fewer resources), the Terrats want to strengthen the systems that support the development of Canada's tech economy and empower Canadian GPs to raise capital globally from institutions, family offices and high-net-worth individuals.

“We help build global investment companies,” Terrats said. “And it all starts with faith and belief in venture capital and private equity firms in our backyard.”

The bank that bet early

The names that have declared their early faith in Wessel's proposal demonstrate a conviction that he is doing something necessary.

In June the company attracted CAD 10.3 million seed round led by Inovia Capital (where Terrats was once a limited partner) and San Francisco-based Afore Capital.

Notably, investors are also among Vessel's clients, spanning North America, Europe and the Middle East. Afore Capital co-founder Gaurav Jain said Vessel has “10x increased our productivity.”

The company has also found supporters among institutional investors.

In October CIBC Innovative Banking provided Vessel with $1.5 million in capital to support the company's expansion in North America and Europe.

CIBC Innovation Banking's decision signaled confidence not only in Vessel, but also in the idea that Canada's venture ecosystem could evolve with better systems and standards.

Eric Laflamme

CIBC Innovation Banking not only provides growth capital to emerging technology companies, but also finances venture capital and growth equity companies through capital call lines of credit and GP lines of credit.

Eric Laflamme, managing director of CIBC Innovation Banking, sees Vessel as a company that is closely linked to CIBC's own funds and finance activities.

He was first introduced to Terrats through Inovia, more than a year before the startup's funding round, and said he immediately understood the founder's vision.

“The project was very early,” Laflamme said. “But it was obvious that the conversation was worth having. There's no blueprint or analysis for it—it's kind of a gut feeling that comes from working in technology.”

Raising Canada's Game

CIBC's combination of institutional reach and entrepreneurial culture, Terrats says, has made it a natural partner to help Canadian foundations shine on the global stage.

Unlike most financial institutions, CIBC's innovative banking practices operate as a single platform across Canada, the United States and Europe, giving the bank a rare advantageous position.

For global companies like Vessel, this approach is invaluable.

Terratz said CIBC does not view Vessel as a transaction, but rather as an overall mission to enhance professionalism in the private markets. Both teams work hand-in-hand with Canadian GPs to structure their fundraising and investor relations practices with the same discipline that the best tech companies bring to their go-to-market efforts.

“The future of private markets lies in combining automation with relationships,” Terrats said. “Vessel is an artificial intelligence platform that helps companies manage their capital, investors and communications in one integrated environment so they can focus on building relationships.”

The numbers confirm this. One firm used Vessel to sell to 173 potential limited partners and converted 35 percent; another saw conversion rates approaching 50 percent.