Pelorus Venture Capital has launched fundraising for its third Newfoundland and Labrador–focused venture capital fund, reportedly nailing down 40 percent of its $50 million target.

The St. John’s–based firm issued a press release Monday saying Venture NL III builds on the work of its previous two funds, the first of which launched in 2015.

The Government of Newfoundland and Labrador is committing $15 million to the new fund, following up on its participation in the previous two funds, according to the statement. The Globe and Mail reported that Klister Credit Corp., an investment firm set up by Shopify investor John Phillips, is investing $5 million in the third fund. Pelorus has set a goal of $50 million for the new fund, said the Globe.

According to Pelorus, Venture NL I was a $14 million fund that returned $21 million to investors at the 10-year mark – or $1.50 for every dollar invested. Investors included the provincial government, angel investors and the Business Development Bank of Canada.

“The Pelorus VC fund is one of the most successful in the country and is a true demonstration of NL ingenuity and collaboration where innovators, investors and governments work together for the benefit of building the nation and the world’s most impactful companies,” said Pelorus Managing Partner Chris Moyer in a statement. “Our founders and the talent and skills growing here are world class innovators.”

According to Pelorus, the first two funds and related special purpose vehicles have invested $30.3 million in Newfoundland and Labrador–based companies. Sixteen companies have received backing, with 11 still active. The firm places the collective valuation of its active portfolio companies at $1.59 billion.

Pelorus’s portfolio includes two companies that closed mega-deals last year: CoLab Software raised US$72 million; and Spellbook closed a US$50 million round. Other portfolio companies include Sequence Bio, Sparrow BioAcoustics, BreatheSuite, Mantle, Verlo, Mysa, HeyOrca, SiftMed and Swiftsure. Clockwork Fox, another portfolio company, was acquired in 2021.