The Toronto-based venture capital firm is aiming to raise $290 million in total for the fund. It will invest 25 per cent of the capital directly in startups and 75 per cent in other venture capital funds that will then deploy the money to companies. (The Logic)

Talking point: Kensington is the first of four firms in the federal government’s latest Venture Capital Catalyst Initiative (VCCI) to announce a first close. The Business Development Bank of Canada, TD Bank, and individual investors and family offices also contributed to the fund, along with Kensington Private Equity Fund. Investors and startups have been waiting for VCCI money to start flowing to give Canada’s venture capital business a jolt amid a slowdown in deal activity over the past year. In a press release, Kensington said it is already actively investing capital from its third fund, which it plans to allocate primarily in Canada.