Venture firm N49P has raised a US$25-million first close for its fourth fund. The Toronto-based pre-seed firm is aiming to raise US$70 million total for the fund by the end of the year, dwarfing its predecessor, which closed at US$27.7 million. 

The latest fund has backing from Northleaf Capital Partners, as well as family offices, high-net-worth individuals and tech founders whom the firm declined to name.

The raise comes as venture capital fundraising remains sluggish in Canada and globally. Alex Norman, a partner at N49P, said some investors have slowed or delayed commitments because of economic uncertainty tied to tariff-related volatility and war in the Middle East. 

Norman said the firm was able to clinch backing from a mix of returning and new investors thanks in large part to delivering returns across its earlier funds. The firm has logged a handful of exits since launching in 2018, with its portfolio including early bets on several promising startups such as Spellbook, EvenUp, Cobrand and Quandri. 

The firm is keeping the same investment thesis for its latest fund. That means backing “non-consensus founders”—those who may be overlooked by investors who prioritize entrepreneurs with previous exits or specific experience at top tech firms. 

Norman said N49P plans to invest in roughly the same number of startups as its previous fund—about 30—but will write bigger cheques and make follow-on investments in the fund’s portfolio companies. 

The larger fund lands at a time when the financing needs of early-stage founders are changing. AI advancements have made it possible for many entrepreneurs—particularly those building software—to start their companies with little-to-no outside capital, said Norman. Meanwhile, companies building deep tech and hardware, including those in defence, manufacturing and health care, still require significant upfront funding, he said. 

At the same time, Norman said investors have become more demanding at later funding stages, pushing startups to show stronger revenue and traction before raising seed or Series A rounds. As a result, N49P plans to reserve more capital to continue funding portfolio companies for longer before they need to seek outside investors. 

“Everyone wants the same thing sooner,” Norman said, describing a market in which startups are expected to look like “a clear winner” earlier than ever before. “To give our founders the time and capital to get there is important,” he added.