RBC Generator, the impact investing arm of RBC’s Social Finance initiative, has invested $500,000 in the MaRS Cleantech Fund, MaRS Discovery District said Wednesday.
This is the first deal announced through the RBC initiative.
Launched in 2012, the MaRS Cleantech Fund aims to provide early-stage funding to companies developing next-generation clean technology breakthroughs with global markets, deep intellectual property and capital-lean business models.
RBC Generator provides financing for enterprises that address clean water, energy efficiency, or employment opportunities for youth or disadvantaged groups.
“RBC’s investment speaks to the momentum that is building around the impact investing agenda both in Canada and globally,” said Tom Rand, co-managing director, MaRS Cleantech Fund. “The MaRS Cleantech Fund targets technologies that will change the energy game. This investment from RBC will help these ambitious and talented entrepreneurs become global leaders.”
The fund will invest in 10-12 cleantech companies that aim to provide solutions to pressing challenges such as rising energy prices, resource scarcity and carbon emission constraints. It is able to mitigate early-stage investment risks by leveraging its relationship with MaRS, which provides access to a leading network of innovators developing clean and sustainable technologies. According to Ottawa-based Analytica Advisors, the global cleantech market is expected to reach $3 trillion by 2020.
“Our investment in the MaRS Cleantech Fund is the first made by the RBC Generator, and we hope that others in the business community will make similar commitments to help create positive social and environmental change.” said Sandra Odendahl, head of RBC’s Social Finance initiative.
Today’s announcement is part of RBC’s multi-million-dollar commitment to help drive social and environmental change through private investment activity.