Charlottetown-based Forestry.io has become the first startup in Canada to close a round of funding that includes an AngelList syndicate — a development that opens a new avenue of financing for Canadian startups.
Forestry.io, which has developed a platform for posting content on static websites, closed its US$560,000 (C$747,000) seed round in February. The investors included an AngelList syndicate led by noted Silicon Valley investor Gil Penchina, who previously invested in LinkedIn, Cruise Automation and Dollar Shave Club.
AngelList syndicates are groups of investors who follow the lead of a well-known funder, betting that this individual’s background and knowledge offer a seal of approval in a high-potential investment. They have become a force for attracting capital to promising startups in the U.S. in the past couple of years, but regulators have only allowed them in Canada this year.
“We’re delighted to have this funding in place, and to be backed by Gil and other investors from this syndicate,” Forestry.io CEO Scott Gallant said in a statement.
“We hope we are the first of many AngelList Syndicates investing in Canada, and that they help develop great companies across the country.”
Read more in Entrevestor.