Edmonton, Alberta – June 7th, 2022
Western Canada-based Sprout Fund announces three new investments from its recently launched Sprout Fund II.
With over $10 million under management, the team is excited with the quality of deal flow it is seeing in the market and will continue to raise additional capital to grow Fund II. “These initial investments demonstrate our commitment to Western Canada and the quality of the startups we see being built here,” said Mark Benning, Partner at Sprout Fund. “Our portfolio companies in Fund I have experienced valuation lifts of 3x to 10x, in less than three years, demonstrating the effectiveness of our model which provides financial capital alongside mentor capital. We intend to replicate similar success with our new investments from Fund II,” he added.
The three new investments include:
LetHub, a prop-tech startup with solid market traction in Canada and the United States. LetHub provides an intelligent leasing automation platform for property managers that uses Artificial Intelligence to augment and streamline their day-to-day work. The company is led by Faizan Ali Khan, a three-time entrepreneur originally from Pakistan, who has quickly built a diverse team that has gained rapid market adoption. LetHub’s product, River (www.lethub.co), helps landlords and property management companies rent units more efficiently, provide a better experience to prospective tenants, and improve the bottom line. “Team LetHub is very excited to be part of Sprout Fund II and its network of experienced investors. The investment will allow us to establish ourselves in the multifamily residential market and build new products that improve the experience of finding, managing, and keeping great tenants,” said Faizan Ali Khan, Founder and CEO.
Swede, which is disrupting the home renovation market (www.swede.ca) by simplifying the way home renovations are planned and purchased. The company streamlines the otherwise complex relationships between interior designers, customers, manufacturers, and suppliers and makes the experience as simple as ordering stylish furniture online. With more than a decade of previous experience in the home renovation space, the team at Swede has designed an approach that removes all of the friction and countless hours that customers would normally experience and has yielded explosive growth for the company. “We’re very excited to leverage the incredible experience and network provided by the Sprout Fund leadership team. This capital will enable Swede to begin accelerating our launch across Canada,” said Anthony Stubbs, Founder and CEO.
Frontly, a no-code front-end automation platform that makes it easier for startup development teams to release products without front-end development being the bottleneck. With the growing shortage of developers and the rapidly escalating costs to hire them, Frontly (www.frontlyapp.com), allows its customers to launch custom web apps 10X faster. With the no-code/low-code market expected to scale to $80 billion within the next 5 years, Frontly is poised to benefit from this massive growth wave. The company is led by Patrick Kelly, a three-time entrepreneur that has grown a previous dev-tech company to profitability. “Sprout Fund has provided value beyond the investment from day one with their solid advice, based on their significant combined experience and knowledge. With this capital, Frontly is able to aggressively scale our sales and marketing, and make several key hires to keep up with demand”, said Patrick Kelly, Founder and CEO. “We look forward to working closely with all three of these exciting and innovative startups as they grow to the next stage,” stated Kristina Milke, Partner at Sprout Fund.
About Sprout Fund
Seed stage venture and mentor capital to accelerate the growth of Western Canadian B2B software startups… that’s what we provide. We recognize that the most successful founding teams, building the most globally relevant companies, demonstrate a unique blend of hustle and diversity. In addition to our active mentorship, our additional value-add comes from the diversity of our investment team and investor pool that are all successful entrepreneurs in industries ranging from crypto to real estate and from ed-tech to energy.
Sprout Fund has recently completed the first closing of Fund II and is raising additional capital from family offices and institutional investors. Great founders and interested accredited investors can reach us at: info@sproutfund.vc.