The Toronto-based tech company will invest the fund over three to five years in fast-growing startups that have the potential to become standalone business units within Constellation. The fund’s employees will be compensated based on the portfolio’s results. (The Logic)

Talking point: Constellation already invests heavily in startups, primarily through acquisitions. The company buys about 90 small computer-coding businesses a year as a strategy to grow its global platform. The new fund will support larger companies than its typical investees, and they have to be able to function independently of Constellation’s sales, marketing and other business resources, the firm said in a press release. The move places Constellation among the growing list of corporations—including Shopify, Telus and RBC—delving deeper into venture funding and helping fuel record deal activity in Canada. Constellation said the venture fund is meant to “refine organic-growth processes,” and that it won’t detract from its acquisition strategy already in play.