Telegraph Ventures announced that it has secured $35 million to invest in enterprise-focused artificial intelligence startups in Québec. The firm plans to grow the fund to $40 million by the end of this year. This move signals a strong commitment to build a stronger early-stage funding ecosystem for AI startups in Québec, a province already known as a global hub for artificial intelligence research and talent.
The Firm and Its Roots
Telegraph Ventures operates as a spinoff of European venture capital firm Telegraph Hill Capital. The team behind Telegraph Ventures has years of experience working with early-stage technology companies in Europe and North America. With the new fund, the team wants to create a stronger bridge between Québec’s growing AI talent pool and global markets.
The firm aims to back founders who build practical and defensible AI businesses rather than speculative or hype-driven projects. Its focus lies in enterprise applications of AI, where startups solve real business problems through data-driven models and scalable products.
The Size and Structure of the Fund
Telegraph Ventures closed its first round with $35 million and aims to reach $40 million before the year ends. The fund will target pre-seed and seed-stage startups, which often struggle to raise money in Québec’s current venture landscape.
The firm expects to write cheques ranging from $500,000 to $750,000 for each investment. It also plans to reserve funds for follow-on rounds, ensuring that successful startups continue to receive capital support as they scale. The fund design shows a clear strategy: back companies early, provide hands-on guidance, and double down on winners as they progress.
The Backers
More than 40 investors joined the fund. The list includes Investissement Québec, Teralys Capital, Inovia Capital, and several family offices and successful entrepreneurs. The participation of the Québec government, through Investissement Québec, highlights the importance of AI innovation in the province’s economic growth strategy.
These backers provide not only capital but also networks and credibility. Their involvement gives early-stage startups stronger access to resources and markets. It also sends a signal to the global investment community that Québec continues to strengthen its AI ecosystem.
Why Québec?
Québec has earned global recognition as a hub for artificial intelligence. Montréal, in particular, hosts leading research centers, universities, and labs that attract AI talent from across the world. International companies like Google, Microsoft, and Meta have set up AI research operations in the city.
Despite the talent concentration, many local startups face challenges in raising early-stage capital. Reports show that the number of early-stage deals in Canada has declined, and Québec founders often complain about limited funding options at pre-seed and seed stages.
Telegraph Ventures wants to fill this gap. The firm believes that more early-stage capital will help Québec startups grow faster, retain local talent, and compete in global markets.
The Investment Thesis
Telegraph Ventures follows a clear thesis: support “useful AI.” The firm looks for startups that combine strong technical capabilities with domain expertise and defensible business models.
The partners believe that AI startups must build learning loops from data, develop clear go-to-market strategies, and solve specific problems for enterprises. They want to avoid speculative ventures that focus more on hype than on impact. By funding practical applications, the firm expects to create lasting value for both startups and their customers.
Sectors of Interest
The fund plans to invest in enterprise AI applications across multiple sectors. These may include:
- Healthcare: AI solutions that improve diagnostics, patient management, or drug discovery.
- Manufacturing: Predictive maintenance, process optimization, and supply chain automation.
- Financial services: Fraud detection, credit scoring, and customer service automation.
- Retail and logistics: Demand forecasting, personalization, and delivery optimization.
- Energy and sustainability: Tools that enhance efficiency and support clean energy initiatives.
The firm does not restrict itself to one industry. Instead, it seeks companies that can apply AI to large, underserved markets with high potential for growth.
Early-Stage Gap in Canada
Canada’s venture landscape has experienced a slowdown in recent years. Many investors prefer later-stage deals, leaving early-stage founders with fewer funding options. In Québec, this gap has become even more visible.
Telegraph Ventures positions itself to solve this issue. By targeting pre-seed and seed rounds, the firm aims to provide capital when startups need it most. The strategy ensures that promising AI startups do not stall due to lack of resources in their earliest days.
Global Mindset with Local Roots
Although the fund focuses on Québec, the team maintains a global perspective. The partners want to back companies that may start in Québec but can scale to international markets. They also remain open to supporting Québec-born founders who move abroad but maintain links to the province.
This approach balances local ecosystem development with global ambition. It ensures that Québec startups can grow beyond provincial borders while still benefiting the local economy.
Alignment with Public Policy
The Québec government has made AI a central part of its economic development agenda. Earlier this year, the province announced nearly $100 million in funding for applied AI projects to boost adoption across industries. The participation of Investissement Québec in Telegraph Ventures aligns with this broader strategy.
By supporting early-stage startups, the fund strengthens the government’s efforts to position Québec as a leader in AI innovation and adoption. It also creates opportunities for job creation, knowledge transfer, and international partnerships.
The Road Ahead
Telegraph Ventures expects to make its first set of investments in the coming months. The firm will likely target startups that combine strong academic research with practical business applications.
The success of the fund will depend on how effectively it identifies founders with vision and execution ability. It will also depend on how quickly startups can convert AI research into market-ready products.
As the fund deploys capital, observers will watch how it impacts the broader venture ecosystem in Québec. If successful, the model could inspire other venture firms to launch similar funds, further strengthening early-stage financing in Canada.
Conclusion
Telegraph Ventures has taken an important step with the launch of its $35 million fund. The move reflects confidence in Québec’s AI ecosystem and addresses a clear gap in early-stage financing. By focusing on enterprise AI startups, the firm positions itself to support innovation that solves real business problems and creates long-term value.
The backing from government, institutional investors, and private entrepreneurs adds strength to the initiative. With cheque sizes tailored for pre-seed and seed stages, and reserves for follow-on support, the fund offers the right mix of flexibility and commitment.
Québec already holds a global reputation in AI research. With more early-stage capital flowing into startups, the province now has a stronger chance to convert its talent advantage into successful global companies. Telegraph Ventures’ fund could become a catalyst for the next generation of AI leaders emerging from Canada.
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