McRock Launches New Fund to Invest in AI-Enabled Industrial Software Companies

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McRock Fund III has held an initial close, securing top tier institutional investors to focus on the growth of the Industrial Software sector.

Toronto, Ontario–(Newsfile Corp. – June 5, 2024) – The future of digital transformation just got brighter for industrial sectors, as McRock Capital launches Fund III today with an initial close of US $81 million.

McRock Fund III investors include anchor Limited Partner Export Development Canada (EDC), along with longtime partners BDC Capital, Alberta Enterprise Corporation, Fonds de solidarité FTQ and Aspen Technology, Inc., plus newcomers Venture Ontario, Bell Ventures and CIBC Innovation Banking.

“The next frontier in software is Industrial Software,” notes McRock Co-founder and Managing Partner Whitney Rockley. “The sector, supercharged by rapid advancements in AI, is a promising area of growth. AI-enabled software’s ability to generate efficiency and productivity in industrial and smart city applications is seriously exciting.”

McRock has been investing in industrial software since its inaugural fund and has demonstrated its expertise in scaling world-class businesses from former portfolio companies Mnubo (acquired by Aspen Technology, Inc. in 2019), Decisive Farming (acquired by Telus in 2019), ThoughtTrace (acquired by Thomson Reuters in 2022) and Poka (acquired by IFS in 2023) to active portfolio companies like Landing AI, Samdesk and their newest investment announced today, Prevu3D.

“McRock has been a long-time partner of EDC, working alongside to support some of the most promising technology companies Canada has to offer,” says Guillermo Freire, Senior Vice-President, Mid-Market Group, EDC. “Through this partnership, EDC has been able to deploy its full suite of solutions to accelerate the scaling of high-potential Canadian companies and witnessing first-hand the success that many of these companies are having on the world stage.”

“BDC Capital is pleased to be supporting McRock as it launches Fund III,” comments Lily Lam, Director, Fund Investments, BDC Capital. “The digital industrial sector is important to driving efficiencies and prosperity in traditional sectors within Canada and abroad. BDC is excited for the McRock team as they continue to invest and support high momentum companies.”

“We are excited to announce our new investment in McRock Fund III,” said Steve Romanyshyn, President and CEO, Venture Ontario. “McRock, which is headquartered in Ontario, has played an impressive role in financing and guiding some of Ontario’s most promising digital industrial companies like Miovision and Clearpath Robotics.”

“Alberta is home to global talent in machine learning and is a leader in building technology for operating efficient and clean industrial businesses,” commented Kristina Williams, CEO, Alberta Enterprise Corporation. “More than 50 percent of Alberta startups develop software for agriculture, energy, mining and other industries, and McRock’s investment will help our most promising companies to grow and compete globally.”

“80 percent of digital investment projects wouldn’t be possible without the right support. The Fonds is proud to participate in McRock Fund III, which will bring much-needed capital to AI companies and thus ensure the development of the Industrial Software sector,” says Philippe P. Huneault, Vice-President Private Equity and Impact Investing Technology, Fund Management and Chief international Business Development at the Fonds de solidarité FTQ.

“Industrial software is a key enabler for efficient, resilient and sustainable operations and businesses of the future, which drives the need for continuous innovation and investment in this market,” notes Antonio Pietri, President and CEO, Aspen Technology, Inc. “As an investor and strategic partner to McRock over the years, we are excited about their future and the ongoing impact they will have on this critical industry.”

“Bell Ventures is pleased to invest in McRock Fund III, which promises to continue to drive significant innovation in the growing industrial IOT and supply chain technology sectors,” said Martin Cossette, Managing Director, Bell Ventures. “McRock has deep industry knowledge, track record and experience in supporting the success of growth-stage companies, and as a strategic partner, Bell will provide these companies with access to its advanced network technologies to further support their continued success.”

“CIBC is excited and pleased to invest in McRock’s Fund III. McRock has been at the forefront of supporting industrial IOT and software companies that provide an indelible impact in improving efficiency in the industrial sectors and helping to scale world-class companies,” says Robert Rosen, Managing Director, Innovation Banking. “The advancement in AI is helping push industrial software companies to being leaders in innovation. We look forward to supporting McRock in investing in these groundbreaking companies.”

About McRock Capital

Co-founded by Scott MacDonald and Whitney Rockley in 2012, McRock Capital is the first dedicated Digital Industrial venture capital fund manager, focused on the intersection of data and software in large industrial markets and smart cities. The funds invest in North America, Europe, and Israel. The McRock team lives in the unique intersection of building high-growth Industrial SaaS companies and deep domain experience in the power, water, and oil and gas industries. McRock is backed by several leading institutional investors and global corporations including Cisco Systems, Caterpillar, Shell, Mitsubishi, Aspen Technology, Inc., and Bell. For more information, visit McRockCapital.com.

For more information, please contact:
Scott MacDonald
Co-founder and Managing Partner
Contact: scott@mcrockcapital.com

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