Celesta Capital Eye's Canadian Expansion Plans With Deep Tech Fund
Celesta Capital's Strategic Entry into Canada
Celesta Capital, a prominent and well-known Silicon Valley venture capital fund specializing in deep-tech investments, is strategically expanding into Canada. Having done previous investments in Canada and with one of the founding partners having studied at both the University of Waterloo and McMaster, the presence of the firm is poised is elevate the Canadian deep tech landscape.
Celesta Capital's Storied Deep-Tech History
Founded in 2013, Celesta Capital has rapidly established itself as a global leader in deep technology investments, managing over $1.1 billion USD in assets. With a portfolio comprising more than 100 companies, Celesta is a mainstay in forward-thinking sectors involving semiconductors, artificial intelligence, advanced sensors, and next-generation materials (to name a few). Their successful exits include notable firms like Habana Labs, Nuvia, and Robinhood, highlighting Celesta’s proven capability in recognizing and scaling deep tech companies.
The Influence Behind Celesta Capital's Foray into Canada
Nic Brathwaite, Founding Partner at Celesta Capital, highlight's Canada's foundational efforts in deep technology, supported by imminent research institutions, hot beds of talent, extensive technical expertise and a high quality of life. Speaking at the C-Tribe x TechExec Luncheon, Brathwaite highlighted Canada’s challenge with talent drain, noting his own journey from Canadian-educated talent to Silicon Valley as indicative of this trend. By establishing a robust presence in Canada, Celesta Capital intends to offset this talent drain by investing in domestic deep tech ventures that plan to build, hire and stay in Canada.
The behind-the-scenes efforts of Brathwaite and his conviction in the Canadian ecosystem has been a key driving force behind Celesta's interest in Canada. Originally from Grenada, Brathwaite transitioned from leading roles at Intel and Flex (formerly known as Flextronics), significantly impacting global technology developments such as the Xbox, Palm Pilot, and pioneering miniaturized electronic devices. Co-founding Riverwood Capital and subsequently Celesta Capital, Brathwaite has proven time-and-time again his ability to identify and nurture technology ventures from idea to exit.
The Celesta Advantage: Bridging the Commercialization Gap in Expedited Fashion
An ongoing challenge Celesta aims to address is the gap between R&D efforts in Canadian academic institutions and market-validated solutions that are commercialized on a time horizon that makes sense for investors. While Canada has world class research and foundational innovation capabilities (see: the pioneering discoveries in artificial intelligence made at Canadian institutions like the University of Toronto, the University of Alberta, and the University of Montreal) the economic gains from some of the most important technologies of our time are often realized elsewhere. Particularly in Silicon Valley and other global tech hubs. This disparity highlgihts the need for stronger commercialization pathways within Canada, which Celesta aims to support through strategic investment and ecosystem building.
Strategic Partnerships and Ecosystem Building
Celesta is proactively collaborating with leading Canadian universities, notably McMaster University, and many others on the list. During Celesta's latest visit to Calgary, Alberta they met with representatives from the University of Calgary to explore areas to be a value-add to the research and entrepreneurial ecosystem. These partnerships extend beyond the potential financial investment in companies spun out from the universities. It encompasses active engagement with researchers, accelerators, and policymakers to streamline commercialization processes and align research directions with market opportunities and global technology trends.
To further these efforts, Celesta recently appointed Charles Lespérance, a former partner at BDC Capital’s $200-million CAD Deep Tech Venture Fund, as its first Canadian-based partner. Operating from Montréal, Lespérance brings extensive experience in quantum technologies, mining, oil and gas, and financial restructuring. His established network and specialized knowledge are instrumental in Celesta’s expanded Canadian operations. “Deep tech in Canada is still very much at the cooperative stage, with significantly more promising opportunities than available funding,” noted Lespérance in a BetaKit coverage on the Celesta expsion.
Celesta's Investment Philosophy and Deep Tech Impact
Celesta Capital focuses only on deep technology investments. These are ventures founded on significant scientific or technological breakthroughs and can proliferate to unlock new industries and sectors. Such investments, Brathwaite explains, necessitate substantial patience, dedicated capital, and comprehensive technical understanding. The firm’s track record and history highlights this approach. With successful investments in companies like GoPro, Ambarella, Habana Labs, and Nuvia illustrating Celesta’s capacity to guide deep tech startups to transformative outcomes.
Creating Lasting Economic Value in Canada
Celesta's approach aims to build globally attractive opportunities in Canada, attracting top talent and investment into the country. Brathwaite and Lesperance aim to leverage Celesta's deep connections to major global technology corporations, enabling Canadian startups accelerated access to crucial industry networks without necessitating relocation.
Celesta's future presence marks a new chapter for the country's deep tech ecosystem—one that could finally bridge the gap between the inputs and the outputs of a fully integrated innovation ecosystem.