A new Halifax venture capital fund backed by Natural Products Canada and agricultural lender Farm Credit Canada, helmed by a pair of startup ecosystem stalwarts, has announced the $20 million first close of a planned $50 million to invest in seed stage and Series A companies.

Nàdarra Ventures is led by managing partner Malcolm Fraser and general partner Mary Dimou, who plan to invest primarily in agricultural biotech plays. Fraser was previously the CEO of provincial venture capital Crown corporation Innovacorp (now part of Invest Nova Scotia), and Dimou is managing director of fundraising and management consultancy Olive Theory Ventures.

Natural Products Canada, which provides startup support services, will use its existing infrastructure to provide Nàdarra with a “pre-vetted pipeline” of investment opportunities.

"Food insecurity and challenges related to sustainability are hitting consumers hard, both in Canada and around the world," said Fraser in a statement. "There’s an urgent need to scale sustainable biotechnologies that take aim at environmentally friendly agricultural practices, including the carbon footprint of food, water, and packaging supply chains."

Fraser, who ran several of his own companies before spending almost five years as CEO of Innovacorp, presided over the Crown corporation’s record-breaking 2021 exit from deeptech specialists Meta Materials. The deal netted the fund $101 million, representing a remarkable 35 times return on its initial investment, and won the Canadian Venture Capital and Private Equity Association’s Deal of the Year award.

Dimou, meanwhile, is a well-established player in the world of biotech and agtech venture capital, having previously managed funds with assets in the $500 million to $1 billion range for companies like Scotts MiracleGro, Canopy Growth Corporation, which was once the world's largest cannabis company by some measures, and the Ontario Centre of Innovation.

“Our vision is a future where biotechnology plays a pivotal role in advancing human health and nutrition, sustainable bioproducts, animal health, plant science, waste and water treatment,” said Dimou.

“We believe in the immense potential of biotechnology to tackle the most pressing challenges facing our world today through meticulously validated scientific innovation.”