In Depth: LX Ventures

Frequent readers of this blog will know that I have a soft spot for Canadian companies. The company that I am going to talk about is a different. LX Ventures doesn’t make technology, they invest in companies who have the next big idea. A bunch of things make them unique. First of all, they’re a publicly traded company (ticker symbol TSXV:LXV) and not a fund. Why does that matter? Mike Edwards, President, CEO and Director of LX Ventures explains it this way:

  • It’s easy for a public company to make acquisitions because you have two forms of funding to work from (being cash and securities)
  • Tech companies in the public market are often undervalued. When the market swings to a place where tech companies are very much valued, LX Ventures can leverage that.
  • Canada doesn’t have the same access to capital compared to Silicon Valley or New York.

To me, it sounds like LX Ventures is an agile company. And a careful one too. Mike may hear of 100 companies, but he’s discriminating enough to find the one company that is going to have the best chance to succeed. Not only that, he looks for entrepreneurs who are driven to succeed and who have the skills and background necessary to lead new enterprises. Those who mail it in need not apply. To help Mike with finding these diamonds in the rough is an advisory board made up of some heavy hitters including the following:

  • David Baxby, Co-CEO of Virgin Group
  • Lance Tracey, Co-founder and Chairman of Peer 1 Networks
  • Reza Kazemipour, CEO of Oris4
  • Sheldon Inwentash, Chairman and CEO of Pinetree Capital
  • Alison Lawton, a Canadian business executive and social venture philanthropist.

Chances are you either recognize either the names, or their companies which are all successful companies. With this level of talent on board you know that they are going to find the right companies to invest in.

The goal of LX Ventures is to get their roster of companies into a position to either be acquired or to go public. Speaking of their roster of companies, here’s a list for you to peruse. These are companies that you should keep an eye on in the future.

Canada is a country where there is a lot of talent and ideas out there. But it takes more than just talent and good ideas to come up with a successful company. You need capital. Good thing there’s someone like Mike Edwards and LX Ventures out there to find the best ideas and bring them to light.

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