News Summary

Telegraph Ventures, a spinoff of European firm Telegraph Hill Capital, has launched a new early-stage fund in Québec to support local AI startups, securing nearly $35 million in its first closing. The fund aims to catalyze the pre-seed market in Canada, which has seen a decline in investment activity. General partner Étienne Mérineau, formerly of conversational AI startup Heyday, will manage the fund, focusing on startups that build useful AI tools for businesses. With backing from the Québec government, Teralys Capital, Inovia Capital, and over 40 entrepreneurs, the fund plans to invest in around 30 companies at pre-seed and seed stages, with check sizes ranging from $500,000 to $750,000. The initiative seeks to provide more options and competition in the venture capital landscape, particularly targeting Québec companies but also open to supporting Québec founders globally.