Digital consultancy Appnovation gets $15 million in equity financing

15 August 2019 2 min. read
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Vancouver-based digital consultancy Appnovation received $15 million in equity financing from the Canadian Business Growth Fund (CBGF) and UK-based Business Growth Fund (BGF) – private equity funds created by leading financial institutions in Canada and the UK.

Appnovation is a full-service digital consultancy which delivers offerings in digital strategy, user experience & design, development & engineering, data analytics & insights, corporate agility, and managed services. The Vancouver-based firm has 350 employees and 14 offices across Canada, the US, UK, Belgium, the Netherlands, and Hong Kong.

Appnovation has worked with a roster of high-profile clients, including Pfizer, American Express, and Mattel. The company was named one of the 2018 Canadian Business Growth 500 Fastest Growing Companies, and received a 2019 Deloitte Technology Fast 500 award.

The fast-growing technology consultancy has now received $15 million in equity financing from BGF and CBGF. BGF was formed in 2011 in the UK by a number of financial institutions, including Barclays, HSBC, and Lloyds Bank, with the intention of helping grow promising businesses through long-term, minority, non-controlling equity investments. Since 2011, BGF has invested more than £2 billion in over 285 companies.

Digital consultancy Appnovation gets 15 million in equity financing

CBGF was founded in Canada on the same funding model, and is backed by the Big Six Canadian banks, as well as a number of other financial institutions such as Manulife and Canadian Western Bank. CBGF aims to grow mid-market Canadian businesses with investments between $3 and $20 million, and has $545 million in capital commitments.

The $15 million investment will help Appnovation accelerate its international growth, creating more jobs in Canada, the UK, and beyond.

"Appnovation is building an impressive business by executing a differentiated international growth strategy, and we are excited to partner with their leadership team as they evolve into a leading global digital consultancy," George Rossolatos, CEO, Canadian Business Growth Fund, said. "The opportunity for both the CBGF and BGF to further our independent mandates together by driving job creation in each of our respective markets with this joint investment in Appnovation is very exciting."

Stephen Welton, CEO of BGF, added, “This first co-investment marks the deepening of the relationship between BGF and CBGF, backing the growth ambitions of Appnovation both in the UK and Canada. We have been delighted to support CBGF since its inception and are proud to have seen the BGF model effectively deployed on an international level. The relationships we have will help to build opportunities and networks for our portfolio and the CBGF's.

“We're very keen to see the BGF model adopted in other countries, creating a positive and pragmatic network for growth businesses across the globe,” Welton added.

According to BGF, banks in Australia are currently exploring the funding model approach as well.