Chrysalix Announces First Close Of $120m USD Fund

Oct 10, 2018

As published in Betakit

Vancouver-based Chrysalix Venture Capital has closed announced the first close of its target $155 million CAD ($120 million USD) new fund.

Wal van Lierop, founder and managing partner of Chrysalix, said that the firm had closed almost half of Chrysalix RoboValley Fund, and is set to close $129 million ($100 million USD) by the end of the year. LPs in the fund so far include Teck Resources Limited, Mistletoe Venture Partners International, PETRONAS, Delft University of Technology, Mitsubishi Corporation, Golden Properties, and an undisclosed mobility corporate investor.

“We are pleased to welcome several leading international investors to the Chrysalix RoboValley Fund,” said Richard MacKellar, managing partner at Chrysalix Venture Capital. “Working closely with our Limited Partners, the Fund will connect leading industrial companies with outstanding entrepreneurs, linking market-driven problems to innovative solutions while creating outsized financial returns and environmental sustainability.”

The RoboValley Fund is Chrysalix’s second fund, focused on resource-intensive industries; the fund will look at companies developing technology that enhances productivity in the energy, chemicals and mining sectors. Chrysalix also called out specific technologies like AI, data analytics, sensors and components, IoT, robotic systems and blockchain as points of interest.

“Blockchain and robotics that will enable traditional industries to move from the ‘analog’ era many of them still operate into the ‘digital’ reality of today and tomorrow,” said van Lierop. “It is an evolution of our tried-and-tested investment thesis to commercialize step-change innovation for resource-intensive industries. The new focus is benefitting from the convergence of rapid developments in digitalization and energy/cleantech that will drive significant new value opportunities and benefit the environment.”

The firm’s investments so far include MineSense, which raised $23.5 million in August, Axine Water Technologies, and Bridgelux. Chrysalix targets seed or series A stage companies, with typical cheque size hovering between $2 million to $3 million. Over the life of a portfolio company, the firm may invest up to $15 million.

“Our goal is to support startups to bigger and accelerated outcomes by offering strategic assistance, particularly unique market insight and sophisticated go to market strategies; and introductions to customers, partners, other investors and top talent,” said van Lierop. “When evaluating potential investments in startups, we look for attractive markets with billion-dollar opportunities, compelling customer value proposition, sustainable competitive advantage, and the start of a strong team.”

Chrysalix has expanded to Europe through an office in Delft, Netherlands, and the UK. The firm is also eyeing a presence in Asia.

“Many of today’s industries face challenges that demand innovative solutions that can simultaneously lower costs while increasing productivity and sustainability,” said Fred van Beuningen, managing partner at Chrysalix Venture Capital. “Machine intelligence enabled by AI leads us into the fourth industrial revolution characterised by cyber-physical systems. Sensor-driven connectivity, IoT and virtualization have an immense impact on what we produce and buy, but also on how these products and services are designed and the nature of work itself. Building on Chrysalix’s legacy of working with resource-intensive industries, intelligent systems provide an opportunity for step change innovation.”