Scion of Canada’s Richest Family Looks to Grow AI Investments
The venture capital firm for a member of Canada’s richest family, Thomvest Ventures, is on the hunt for more artificial intelligence deals as global companies increasingly adopt the technology to enhance productivity and security.
A Growing Market for AI
The global market for AI-related products is predicted to reach US$990 billion in 2027 as the technology’s quick adoption disrupts companies and economies. According to a report by Bain & Co., released last month, this growth will come from various sectors such as cybersecurity, privacy, compliance, and development tools.
Thomvest’s Previous AI Bets
Thomvest has already seen lucrative returns from its previous AI investments. Its first generative AI bet, Cohere Inc., reached a valuation of US$5.5 billion in July, more than doubling the series B round from June 2023. Cohere is a Toronto-based startup co-founded by Aidan Gomez that builds and customizes large language models – software trained on massive swaths of the internet to analyze and generate text.
Relyance AI: The Latest Investment
Thomvest led a US$32.1 million round in Relyance AI, an automated platform that checks live data for compliance with customer agreements, global privacy regulations, and compliance frameworks. Clients include Coinbase Global Inc., Snowflake Inc., and Logitech International SA.
Umesh Padval’s Vision for Thomvest
Umesh Padval, managing director of Thomvest, believes that "AI is just about at an inflection point." He emphasizes the importance of focusing on the right companies in AI, saying, "You have to make sure you need to focus on the right companies in AI."
Future Investments and Consolidation
Thomvest expects more consolidation in the sector. Padval notes, "There was a crazy rush from all the investors to invest in AI companies." He believes that only one or two companies will survive and do well in each area of AI.
Canadian Universities and AI Development
Padval also sees AI graduates from Canadian universities helping to accelerate development and startup growth in Toronto, Thomson’s hometown. This is particularly significant given the recent Nobel Prize win by Geoffrey Hinton, professor emeritus of computer science at the University of Toronto and often referred to as the "godfather of AI."
Thomvest’s Investment History
Thomvest manages US$750 million of the US$12 billion fortune amassed by Thomson, part of the family that owns media empire Thomson Reuters Corp. (Bloomberg LP, the parent of Bloomberg News, competes with Reuters as a provider of financial news and services.) Thomvest has made more than 80 deals since 1996 and launched a US$250 million fund earlier this year.
The Thomson Family’s Net Worth
Thomson, 59, is co-chairman, with his brother David, of The Woodbridge Co., which manages the wealth originated by his grandfather Roy Thomson’s investments in Canadian and British media outlets. The Thomson family is worth about US$90 billion, according to the Bloomberg Billionaires Index.
Conclusion
As AI continues to disrupt industries worldwide, Thomvest Ventures remains committed to investing in the most promising AI startups. With its proven track record and access to a vast network of talented individuals and innovative companies, Thomvest is poised to continue driving growth in the AI sector.
Share Your Thoughts
- What do you think about the growing importance of AI in today’s economy?
- How do you see Thomvest Ventures’ investments impacting the development of AI technology?
Join the conversation by sharing your thoughts and opinions on this article.
