Radical Ventures Secures More Than $1B at First Close for Its Late-Stage AI Breakouts Fund

Toronto-based Radical Ventures has secured more than $1 billion in commitments at the first close of its Breakouts Fund, a late-stage vehicle for AI companies. BetaKit put the figure at "well over" $1 billion USD, or about $1.4 billion CAD. The firm calls the fund "multi-billion-dollar" but has not disclosed a final target.

Backers include the Public Sector Pension Investment Board (PSP Investments), the Canada Pension Plan Investment Board (CPP Investments), HOOPP, TD Bank Group, BMO Financial Group, CI Global Asset Management and OPTrust. The fund was unveiled at Prime Minister Mark Carney's inaugural Canada Investment Summit in Toronto.

Keeping winners at home

Co-founder Jordan Jacobs has argued that Canada has lacked growth capital at the scale needed to keep its AI companies in the country as they mature. The Breakouts Fund will invest in companies already in Radical's portfolio as well as new ones globally.

Radical moved beyond its early-stage roots in 2024 with an $800 million growth fund.