McRock Launches $100 Million Industrial IoT VC Fund with Global Investors

mcrock sep 9 2019 mcrock launches $100m fund pic square

Toronto, Ontario–(September 9, 2019) – McRock Capital has held an initial closing on its second venture  capital fund, McRock Fund II LP, dedicated to investing in the global trend around the Industrial Internet  of Things (IoT). The new fund has reached over 80% of its targeted $100 million. Investors include Cisco  Investments, Shell and other significant corporate and institutional investors including BDC Capital, Export  Development Canada, Alberta Enterprise Corporation (AEC), and HarbourVest.  

McRock is a thought leader in the Industrial IoT sector and has emerged as one of the most experienced investors financing innovative private companies driving the digital transformation. The new fund will  invest in high-growth companies across Canada, the US, and Europe that are combining next generation  data analytics through artificial intelligence (AI) with the growing data from field devices, machines and 

equipment in industrial and urban environments.  

“We are at the beginning of the digital transformation in every industrial sector and urban environment  around the globe,” said Scott MacDonald, Co-founder and Managing Partner of McRock Capital. “McRock  Fund II provides us with significant investment capital and strategic corporate relationships to help build  the next generation of high-growth tech companies.” 

“Our leadership position continues to be advanced by the caliber of the corporations and institutional  investors we have attracted to McRock and Canada,” said Whitney Rockley, Co-founder and Managing  Partner of McRock Capital. “We also credit our diversity & inclusion initiatives within our own venture  capital firm, and the portfolio of companies we finance, for our strong financial performance.”

“Digitalisation is transforming Shell and we are looking at a range of options to drive future growth in our  marketing businesses,” said Saskia Mureau, Chief Digital Officer, Shell Global Commercial. “In partnership  with McRock Capital, we are seeking out new business models and technologies that have strong  disruptive qualities and that can improve the experience of industrial customers.” 

“In addition to offering a dedicated IoT and digital transformation solutions portfolio, Cisco actively  deploys capital and collaborates with organizations to drive IoT innovation globally. We have been  working closely with McRock since 2014 and are thrilled to continue this strategic relationship,” stated  Amit Chaturvedy, Head of IoT and Enterprise Networking at Cisco Investments.  

“McRock Fund II is building off the success of McRock’s inaugural fund, which is highly differentiated and  supports an emerging cluster of technology strength in Canada,” stated Alison Nankivell, VP of Funds and  Global Scaling at BDC Capital. “We are proud to be a returning institutional investor given their impressive  leadership position not only in their sector but in backing equally diverse and inclusive companies. We  look forward to finding more opportunities to coinvest with the McRock team in diversity focused  Canadian Industrial IoT businesses”. 

“Industrial IoT companies command a global stage, which makes our partnership with McRock a great  opportunity to help Canadian exporters succeed internationally,” said Dan Mancuso, SVP Financing &  Investments at EDC. “McRock is also a leader and champion for diversity and inclusion, which aligns well  with the objectives of EDC’s Women-in-Trade Program. 

“The McRock team has significant Industrial IoT expertise and a track record of building successful high growth companies, specifically in Canada,” said Kristina Williams, CEO of Alberta Enterprise Corporation.  “We see this as a strategic investment for AEC that will facilitate the growth of successful Industrial IoT  companies in the province of Alberta, both to strengthen our foundational industries of agriculture, oil  and gas, and also taking advantage of Alberta’s strength in machine learning and artificial intelligence.”  

“The Industrial IoT sector has great potential for growth as machine learning and AI enter the next phase  of implementation,” said Senia Rapisarda, Managing Director, HarbourVest Partners. “The Fourth  Industrial Revolution is already underway as everyone from corporations to municipalities look to improve  connectivity and efficiency, and McRock’s track record in this space made Fund II an attractive investment  opportunity.” 

About Shell  

Shell is an international energy company with expertise in the exploration, production, refining and  marketing of oil and natural gas, and the manufacturing and marketing of chemicals. For more  information, visit www.shell.com 

About BDC Capital 

BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs.  With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most  innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital,  supporting Canadian entrepreneurs who wish to scale their businesses into global champions. For more  information, visit bdc.ca/capital

About EDC 

Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian  companies of all sizes succeed on the world stage. As international risk experts, we equip Canadian  companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and  connections – to grow their business with confidence. Underlying all our support is a commitment to  sustainable and responsible business. For more information, visit www.edc.ca 

About Alberta Enterprise Corporation 

Alberta Enterprise Corporation promotes the development of Alberta’s venture capital industry by  investing in venture capital funds that finance early-stage technology companies. Since our inception we  have committed $183 million for investment to 17 VC funds, covering a diverse range of forward-looking  industries including information technology, industrial technology, and life sciences. Our funds and their  partners have invested more than $496 million into Alberta technology companies. For more information,  visit www.alberta-enterprise.ca 

About HarbourVest Partners  

HarbourVest is an independent, global private markets investment specialist with 36 years of experience  and more than $64 billion in assets under management, as of June 30, 2019. The Firm’s powerful global  platform offers clients investment opportunities through primary fund investments, secondary  investments, and direct co-investments in commingled funds or separately managed accounts.  HarbourVest has more than 500 employees, including more than 125 investment professionals across  Asia, Europe, and the Americas. This global team has committed more than $37 billion to newly-formed  funds, completed over $21 billion in secondary purchases, and invested over $11 billion directly in  operating companies. Partnering with HarbourVest, clients have access to customized solutions,  longstanding relationships, actionable insights, and proven results. For more information, visit  www.harbourvest.com  

About McRock Capital 

McRock is an investment firm co-founded by venture capital veterans Scott MacDonald and Whitney  Rockley and invests exclusively in Industrial IoT companies across Canada, the US, and Europe. The  Industrial IoT is about the intersection of sensors and software in large industrial markets. For more  information, visit www.mcrockcapital.com. Follow McRock Capital on Twitter @McRockCapital 

Media: 

Scott MacDonald 

McRock Capital  

647 478 9337 ext 1 

scott@mcrockcapital.com