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I’m going to bet most of the Canadian Tech Ecosystem doesn’t know this story…
What is the most successful venture fund in Canadian history?
@Georgian_io Fund 1 ?
@OMERSVentures ?
….. /thread
What is the most successful venture fund in Canadian history?
@Georgian_io Fund 1 ?
@OMERSVentures ?
….. /thread
Nope great returns, but not the best.
If you're a good at knowing Canadian VC’s who've had some phenomenal exits you might throw out the names like …
@BrightsparkVC
or
@VanedgeCapital
You'd still be wrong, but good guesses.
Still wondering?
If you're a good at knowing Canadian VC’s who've had some phenomenal exits you might throw out the names like …
@BrightsparkVC
or
@VanedgeCapital
You'd still be wrong, but good guesses.
Still wondering?
Let me share the abridged story of Celtic House’s (CH) Fund 1.
After all its a firm you barely hear from today, so much so they don’t even have a Twitter handle. (Come on @CoryMichaly)
But they had the most successful Canadian Tech fund in History and in the top 10 ever.
After all its a firm you barely hear from today, so much so they don’t even have a Twitter handle. (Come on @CoryMichaly)
But they had the most successful Canadian Tech fund in History and in the top 10 ever.
But before we start you might wonder “Why does any of this matter in 2020?” (dad)
Well I think there’s an applicable lesson here for our ecosystem. Maybe we can learn something, perhaps we can influence a few people to think critically on what worked in the past.
Well I think there’s an applicable lesson here for our ecosystem. Maybe we can learn something, perhaps we can influence a few people to think critically on what worked in the past.
Also I have History Degree… where we get paid by the word and believe there’s a few lessons from way back when.
So let’s being, but you can’t tell the Celtic House story without telling the story of NewBridge Networks. Because they were intertwined.
So we’ll start there.
So let’s being, but you can’t tell the Celtic House story without telling the story of NewBridge Networks. Because they were intertwined.
So we’ll start there.
In the 1990's Newbridge was the @Shopify of its day.
Today people think Nortel was the tech darling of the 90’s. But that company was a spinout of Bell Canada. Stodgy, old and bureaucratic. It was your dad trying so hard to be cool.
But Newbridge had its founder Terry Matthews
Today people think Nortel was the tech darling of the 90’s. But that company was a spinout of Bell Canada. Stodgy, old and bureaucratic. It was your dad trying so hard to be cool.
But Newbridge had its founder Terry Matthews
You might not believe me but this was formative.
@chamath got his start watching Terry at Newbridge.
“I was like, I want to be [Terry] I want to be this mega compounder swashbuckling around trying to do really cool shit in the world. How do I do that?” https://chamatharchive.com/terry-matthews-and-sam-legg/
@chamath got his start watching Terry at Newbridge.
“I was like, I want to be [Terry] I want to be this mega compounder swashbuckling around trying to do really cool shit in the world. How do I do that?” https://chamatharchive.com/terry-matthews-and-sam-legg/
You’ve probably never heard of Terry but for anyone in Canadian tech then he was a phenom. He was the most successful Canadian tech founder in history and in many ways still is.
And everyone knew we were building something amazing with him.
He defined entrepreneurial hustle.
And everyone knew we were building something amazing with him.
He defined entrepreneurial hustle.
Every quarter Terry would stand on a chair and brief the employees on the results. You have to remember there were 5000 employees at HQ and that meant he did it 3 times a day for 3 days.
I watched as a summer student in 1995 when my ears perked up.
Terry said ...
I watched as a summer student in 1995 when my ears perked up.
Terry said ...
“I know many of you see what we’ve achieved here. And think maybe I should leave and start my own company.
I’ve done it and I think you should too. But first some rules. If you want to do something with your colleagues here and want to work on something Newbridge could use….
I’ve done it and I think you should too. But first some rules. If you want to do something with your colleagues here and want to work on something Newbridge could use….
… Great! But you first need to do this. Come down the hall to my office. Don’t be shy! I want to hear what you’re up to. What it is you’re trying to solve. I won’t be mad…
But I want the chance to be your first investor.” https://www.thestreet.com/investing/stocks/newbridge-networks-affiliates-program-paying-dividends-6108
But I want the chance to be your first investor.” https://www.thestreet.com/investing/stocks/newbridge-networks-affiliates-program-paying-dividends-6108
By 1997 a variation of that speech Terry made at every all hands meeting had resulted in dozens of companies that Terry had invested in.
But VC’s were suspicious how is Terry managing this? where
Terry started a fund Where he was GP and he named it Celtic House.
But VC’s were suspicious how is Terry managing this? where
Terry started a fund Where he was GP and he named it Celtic House.
He also hired a professional team.
Rogers Maggs was his day to day co-manager, Tom Valis and Andrew Waitman were Partners.
Rogers Maggs was his day to day co-manager, Tom Valis and Andrew Waitman were Partners.
Terry believed that he had the inside track on the best and brightest potential founders in Canada and perhaps the world.
He had no idea.
His mentality was so different.
Perhaps even futuristic.
He had no idea.
His mentality was so different.
Perhaps even futuristic.
When I asked him if he was worried about losing his staff.
He said,
“No. I’m worried I’m losing the opportunities I helped them learn to exploit. So I invest in their future success hoping that what we shared together can keep on going, we go from a team to partners”
He said,
“No. I’m worried I’m losing the opportunities I helped them learn to exploit. So I invest in their future success hoping that what we shared together can keep on going, we go from a team to partners”
Future founders would stop by and if the company was going to be Newbridge related Newbridge could invest.
If not it would be flipped over to Celtic House.
Terry made the investment personally if the staff at either place disagreed.
There were huge wins.
If not it would be flipped over to Celtic House.
Terry made the investment personally if the staff at either place disagreed.
There were huge wins.
Terry was a seed investor in Abatis.
A company you’ve never heard of, but they sold for almost 700M US.
Just 2 years after Terry invested, at less than 6 pre. https://www.theglobeandmail.com/report-on-business/us-networking-company-snaps-up-bc-software-firm/article18424748/
A company you’ve never heard of, but they sold for almost 700M US.
Just 2 years after Terry invested, at less than 6 pre. https://www.theglobeandmail.com/report-on-business/us-networking-company-snaps-up-bc-software-firm/article18424748/
Cambrian Systems was sold to Newbridge Arch nemesis Nortel for $460M CAD. Terry was also seed investor. https://www.cbc.ca/news/business/nortel-buys-cambrian-systems-1.161709
The list goes on and on.
Seriously, I shared this thread with some buddies before I published it and people were like “Wow but no…. You can’t list 32 deals.”
But there’s 32 more like this.
Seriously, I shared this thread with some buddies before I published it and people were like “Wow but no…. You can’t list 32 deals.”
But there’s 32 more like this.
Celtic House had one LP - it was financed by Terry Matthews.
He put in $55M between 1996 and 2000.
Almost every portfolio CEO or founding team members had worked at Newbridge or for a company Terry had invested in…
It returned over 9 times its investment capital after fees
He put in $55M between 1996 and 2000.
Almost every portfolio CEO or founding team members had worked at Newbridge or for a company Terry had invested in…
It returned over 9 times its investment capital after fees
But by 2000 though, things had changed.
Terry sold Newbridge to Alcatel for $10 Billion.
He owned roughly 30%. https://money.cnn.com/2000/02/23/europe/alcatel/
The Celtic House team he had hired wanted to keep going …
Terry sold Newbridge to Alcatel for $10 Billion.
He owned roughly 30%. https://money.cnn.com/2000/02/23/europe/alcatel/
The Celtic House team he had hired wanted to keep going …
They spun out and created Celtic House Venture Partners.
Terry supported it and was a good portion of the 2nd fund LP base. But now he’s no longer involved.
Today they’ve invested in numerous companies.
My favourite being @AuvikNetworks which I also worked on at @bdcit_fund
Terry supported it and was a good portion of the 2nd fund LP base. But now he’s no longer involved.
Today they’ve invested in numerous companies.
My favourite being @AuvikNetworks which I also worked on at @bdcit_fund
Auvik was founded by Marc Morin, who was also a founder at Pixstream which soldfor$554 Million. After Celtic House led its Seed Round.
Dave Caputo another cofounder at Pixstream founded Sandvine.
Today, Celtic House continues to invest in the alumni network
Dave Caputo another cofounder at Pixstream founded Sandvine.
Today, Celtic House continues to invest in the alumni network
How do I know all this?
Well I was the youngest project coordinator at Newbridge Network in 1997 after starting as a coop.
By 2005 I was working for Terry Matthews in his Family office at @WesleyCloverInt as an investment analyst.
I and many other people owe Terry a lot.
Well I was the youngest project coordinator at Newbridge Network in 1997 after starting as a coop.
By 2005 I was working for Terry Matthews in his Family office at @WesleyCloverInt as an investment analyst.
I and many other people owe Terry a lot.
Today, Terry is still investing.
He help launch @SolinkCorp where I also am an investor.

With @KRPProperties is the 2nd largest commercial prop owner in Ottawa. He runs a foundation @theWCParks
But he is also the founder of the most successful VC fund in Canadian History.
He help launch @SolinkCorp where I also am an investor.

With @KRPProperties is the 2nd largest commercial prop owner in Ottawa. He runs a foundation @theWCParks
But he is also the founder of the most successful VC fund in Canadian History.
