Montreal-based industrial automation firm Vention Inc. has secured a significant $150 million in funding, with Investissement Québec (IQ) playing a crucial role as the principal investor. This latest financing round, announced on Tuesday, sees IQ contributing $55 million, bolstered by investments from Desjardins Capital, Nvidia Corp.’s NVentures, and existing supporter Fidelity Investments. With a decade-long record of investing $800 million in venture capital, IQ is making its most substantial investment yet, signalling a strong belief in Vention’s potential amidst shifting market dynamics.
A Strategic Investment in Automation
Jean-Simon Cayer, IQ’s director of venture capital investments, lauded Vention, stating, “They have the right team with the right product at the right time.” He noted that the current climate of western reindustrialisation and labour shortages is driving an increased demand for automation solutions. Cayer emphasised that while automation can be complex and expensive, Vention simplifies the process significantly, aided by what he describes as one of the best teams in the industry.
The funding round also contains approximately $20 million in debt. Notably, unlike many recent large tech financings that have involved secondary deals, this investment is entirely directed to Vention, strengthening its financial foundation without diluting shareholder equity.
Vention’s Unique Market Position
Founded a decade ago and led by former McKinsey consultant Etienne Lacroix, Vention occupies a distinctive niche as a vertically integrated provider within the factory automation sector. The company operates an e-commerce platform that allows engineers from over 4,000 factories across 30 countries—including major players like Toyota, General Electric, and Tesla—to design, order, and customise equipment for their production lines.
Vention’s offering includes not only hardware components but also 3D computer-aided design software, enabling clients to create bespoke solutions like robotic workstations and test benches. The company also maintains a library of thousands of ready-made designs, many contributed by its customers, facilitating rapid order fulfilment with flat-packed deliveries and straightforward assembly instructions.
Growth and Future Prospects
Since its last funding round in 2022, where it raised $95 million, Vention has experienced remarkable growth, tripling its size and surpassing $100 million in annual revenues. The latest financing round was executed at the same share price as the previous one, with the company valued at over $1.2 billion. Investors in this round include prominent U.S. funds Bain Capital Ventures, Bold Ventures, and White Star Capital, alongside Canadian backers.
Lacroix acknowledged the improvements Vention has made towards profitability since the last financing, although the company is still investing heavily in research and development. The newly acquired funds will support ongoing investments in design, programming, simulation, and artificial intelligence technologies aimed at enhancing autonomous factory robots. Furthermore, Vention plans to strengthen its presence in Europe, where it currently generates 20% of its sales, while prioritising Canadian investment sources for this funding round, which accounted for over 75% of the total.
Why it Matters
This substantial investment in Vention not only underscores the growing importance of automation in modern manufacturing but also highlights the confidence that both local and international investors have in Quebec’s tech ecosystem. As companies navigate the challenges of labour shortages and the complexities of reindustrialisation, Vention stands at the forefront, poised to play a pivotal role in shaping the future of automated production. By maintaining a Canadian focus in its funding strategy, Vention’s success could serve as a beacon for other tech firms in the region, reinforcing the strength and innovation of Quebec’s vibrant technology landscape.
