Conexus Venture Capital Adds $5M to Fund II, Hits $35M

TL;DR

Conexus Venture Capital, the Regina-based fund backed by Conexus Credit Union, has added another $5 million to its second fund after reopening it earlier in 2026, bringing Fund II's total size to $35 million. The fund originally closed at its $30 million target in November 2025, and the decision to reopen and raise more mid-cycle, rather than wait for a Fund III, points to investor demand outpacing what managing director Jordan McFarlen's team expected when they first set the target. CVC has deployed into 10 portfolio companies so far, including Offstreet, Alto Technologies, Judi.ai, and Cyder, all early-stage technology companies with Saskatchewan ties.

Key Takeaways

Reopening a closed fund to raise more is the unusual part of this story. Most funds either hit their target and move on to planning the next vehicle, or they fall short and quietly extend the raise. CVC did neither: it closed at target, then reopened months later specifically because more capital wanted in. That's a different signal than a standard oversubscription at first close.

A credit union anchoring its own VC fund is still a rare structure in Canada. Conexus Credit Union is putting $15 million of the fund's $35 million directly on its own balance sheet as the anchor LP, a model more common among US credit unions experimenting with innovation arms than among Canadian financial cooperatives.

The portfolio so far skews toward practical, revenue-oriented technology. Offstreet (parking software) and Judi.ai (fintech for credit union lending) aren't flashy AI plays; they're the kind of unglamorous enterprise software that actually gets adopted by mid-market and public-sector buyers. That's a coherent thesis for a credit-union-backed fund, even if it won't generate the same headlines as a defense-tech or foundation-model bet.

This is a regional fund punching above its size for visibility. At $35 million, CVC is small relative to the funds that typically make national venture news. Its willingness to be transparent about reopening for more capital, and BetaKit's continued coverage of individual portfolio moves, gives it more visibility in the Canadian ecosystem than its check size alone would suggest.

Fund Overview

Fund Name: Conexus Venture Capital (CVC) Fund II
Fund Size: $35 million, after an additional $5 million raised following the fund's 2026 reopening (original close: $30 million in November 2025)
Stage: Early-stage technology companies
Check Size: Not disclosed
Geography: Saskatchewan, with a hub around Regina and Saskatoon
Focus: Early-stage technology, with a portfolio weighted toward enterprise software and fintech
Key LPs: Conexus Credit Union (anchor, $15 million); other investors undisclosed, described by managing director Jordan McFarlen as a mix of repeat backers and new financiers

Why This Fund Matters

Saskatchewan doesn't get much attention in the Canadian venture conversation, which tends to concentrate on Toronto, Waterloo, Montreal, and Vancouver. CVC's existence, and now its ability to attract more capital than originally planned, is a data point that early-stage technology investing is viable outside those hubs when a credible local anchor exists. Conexus Credit Union putting $15 million of its own balance sheet behind the fund gives Saskatchewan founders a local institutional backer that doesn't require relocating or flying investors in from elsewhere for diligence.

The reopening itself is worth sitting with as a structural choice. Funds generally avoid reopening after a formal close because it complicates the cap table of LPs (different vintages, different effective entry points, potential pro-rata questions) and because it can look like the fund didn't plan its raise properly. CVC apparently judged that the benefit of deploying more capital into a portfolio that was already showing traction outweighed those complications. McFarlen frames it as a response to demand rather than a correction to an undersized initial raise, and the timeline (initial close November 2025, reopened "earlier in 2026," additional $5 million by November 2026) suggests this was a reasonably quick follow-up rather than a long, strained process.

For a region with relatively few dedicated early-stage funds, CVC's model (credit union anchor, regional focus, enterprise-leaning thesis) is a template other Canadian financial cooperatives could plausibly copy if it continues to perform. Credit unions sit on deposit bases that are naturally suited to patient capital, and the venture arm gives Conexus Credit Union a direct line into the kind of fast-growing local businesses that eventually become larger lending and banking relationships.

The Team

Jordan McFarlen is CVC's managing director and the only general partner named in current reporting. No additional GPs, venture partners, or recent partner-level departures appear in the available coverage of the fund.

Early Portfolio

CVC Fund II has backed 10 companies to date, including Offstreet (parking software), Alto Technologies, Judi.ai (a fintech platform serving credit union lending), and Cyder. The portfolio's first investment under Fund II was Offstreet, and the fund's activity since has stayed concentrated in Regina- and Saskatoon-based companies, consistent with its regional mandate even though the fund has no formally stated geographic restriction.

What This Means for Founders

Saskatchewan-based (or Saskatchewan-connected) founders building early-stage technology companies now have a slightly larger pool of local capital to approach, and CVC's willingness to reopen a closed fund suggests the team isn't precious about sticking to an original deployment schedule if good deals keep showing up. Founders building unglamorous, adoption-driven enterprise software, rather than frontier AI research, are likely to find CVC's thesis a more natural fit than founders chasing a foundation-model or deep-tech narrative.

The fact that CVC's anchor LP is a credit union is also worth noting for founders in fintech or financial infrastructure specifically: a Conexus-backed portfolio company gets at least the possibility of a warm introduction into the credit union's own commercial relationships, which is a kind of value-add smaller funds without an institutional parent can't easily replicate.

Fund Momentum Take

This is a small, unglamorous story next to a $4 billion Norwest close or a $750 million Creandum fund, and that's exactly why it's worth flagging. Regional funds backed by unconventional anchors (credit unions, provincial development agencies, universities) rarely get sustained trade-press attention, but they're often the only dedicated early-stage capital available to founders outside the major hubs. CVC reopening its fund mid-cycle because demand outpaced the original target is a healthier signal for the Saskatchewan tech ecosystem than the $30 million first close was on its own.

The open question is whether CVC's portfolio, heavy on parking software and credit-union fintech so far, can produce the kind of outlier outcome that justifies venture-style return expectations for its LPs, or whether this fund is better understood as a patient, impact-adjacent vehicle for a credit union that wants exposure to its own regional economy. Both are legitimate models, but they call for different return expectations, and it's not yet clear which one CVC and its LPs have actually agreed to underwrite.

Frequently Asked Questions

How big is Conexus Venture Capital's Fund II now?
$35 million, after an additional $5 million raised in 2026 on top of the original $30 million close from November 2025.

Why did CVC reopen a fund that had already closed at target?
Managing director Jordan McFarlen cited strong investor demand and early portfolio momentum as the reasons for reopening the fund earlier in 2026.

Who is the anchor LP in CVC Fund II?
Conexus Credit Union, which has committed $15 million directly to the fund.

What does CVC Fund II invest in?
Early-stage technology companies, with a portfolio so far weighted toward enterprise software and fintech, centered on Regina and Saskatoon, Saskatchewan.

How many companies has CVC Fund II backed?
10 so far, including Offstreet, Alto Technologies, Judi.ai, and Cyder.

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