Briefing

Coveo launches Quebec hiring spree after closing $227-million round

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The investment, led by OMERS Growth Equity, values the Quebec City-based firm at $1.46 billion. Previous investors Evergreen Coast Capital, Investissement Québec and Fonds de solidarité FTQ also participated. (The Logic)

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Talking point: Coveo plans to use the capital for acquisitions and staff growthit’s currently adding about 60 people a quarter, about 50 of which are based in Canada. “Coveo is a real company with real customers and it’s growing,” CEO Louis Tetu told The Logic. Most of the new hires will be in Montreal and Quebec City. The firm recently opened a Montreal office that has 160 people in it, but can fit 300. “It’ll be full in a year,” said Tetu. By nearly any metric, Coveo is now well ahead of its perennial rival, Montreal-based Element AI: the former has $100 million in annual revenue, the latter less than $10 million. Even in fundraising, Coveo’s current round is larger than Element’s $200-million Series B announced in September. Though Coveo has raised most of its money from Canadian investors—75 per cent of its cap table is Canadian and about 65 per cent is from Quebec—it hasn’t taken subsidies from government. That’s something Tetu is proud of: “We’re actually demonstrating that we can build value here without government subsidy.”