The fund, supported by major institutional players including PSP Investments, CPP Investments, HOOPP, and TD Bank Group, is designed to fuel AI scale-ups as they mature into global enterprises. Historically, promising Canadian tech firms have been forced to seek late-stage capital abroad, often shifting their economic footprint away from the country. This new strategy provides a domestic path for startups to remain private longer while reaching valuations of $100 billion or more.

Jordan Jacobs, co-founder of Radical Ventures, noted that the firm has already backed significant players such as Cohere, Waabi, and Discovery Loop. By offering a localized source of deep capital, the fund intends to ensure that the economic returns from Canada’s AI innovations stay within the country. For institutional investors, the move represents a strategic effort to capture the value of the next generation of global AI leaders while supporting the long-term growth of the Canadian economy.