Panache Ventures partner Chris Neumann to depart VC firm, Sarah Willson promoted to principal

Vancouver-based Panache Ventures partner Chris Neumann plans to depart the early-stage Canadian venture capital (VC) firm at the end of 2024 to explore new opportunities.

Neumann joined the Montréal-headquartered VC firm in Sept. 2021, and has spearheaded Panache’s investment efforts in British Columbia (BC). His departure will leave Panache with three remaining partners: Patrick Lor in Calgary, Prashant Matta in Toronto, and Scott Loong in Montréal.

Panache announced this news and some other updates—including the promotion of Toronto-based associate Sarah Willson to principal—earlier today in an email to its limited partners and portfolio founders and subsequent LinkedIn post penned by Lor.

“[Chris] joins an exceptional group of Panache alumni who have started new companies and funds.”

“[Chris] joins an exceptional group of Panache alumni who have started new companies and funds,” the announcement stated. “We look forward to supporting Chris in his new endeavor, as he remains a close friend of the firm.”

Neumann and Lor unpacked these changes in more detail in an interview with BetaKit.

“The changes that are happening right now across tech and the venture industry are opening up some new adjacent opportunities that are in areas that I’m interested personally in looking into,” Neumann told BetaKit, noting that the decision to depart Panache was his own.

Neumann added that he will share more about what comes next for him in 2025, noting that he remains fully focused on Panache until the end of this year.

Lor thanked Neumann for his service at Panache over the past three-plus years, including his help coaching early-stage entrepreneurs and training other folks at the firm. “Chris’ work speaks for itself … Chris is everything that you would want in a partner,” Lor told BetaKit.

RELATED: Canadian startup formation data from Panache Ventures points to future demand for capital

Lor said Neumann’s departure does not trigger any key person clauses with the fund, noting that Panache LPs were informed before today’s announcement. He said the response so far has been “positive and supportive.”

Going forward, Lor said he will lead Panache’s efforts in BC and Western Canada more broadly, with Matta focusing on Central Canada and Loong on Eastern Canada.

Currently, more than 20 percent of Panache’s investments across its two funds are in BC. The VC firm emphasized that it intends to invest in the BC tech ecosystem going forward. Vancouver-based analyst Melaniia Volkodav will continue to support this work alongside Lor.

Lor called Willson, who has been with Panache for over three years, a “shining star.” He cited Willson’s deal sourcing, due diligence, and leadership within and beyond the firm as a community builder as a few of the factors that led Panache to promote her to principal. 

“The ambition in her is something that’s just unrelenting … We absolutely recognize what we have on our hands here,” he added.

Panache focuses on pre-seed and seed-stage Canadian technology startups. Originally launched in 2018 by a team that came out of 500 Startups Canada, the VC firm has become one of Canada’s most active early-stage investors. 

Its portfolio currently includes companies like Certn, CoLab Software, and Relay, while its exits include Flinks, Lane Technologies, and Valence Discovery. Panache claims that its fund performance is currently tracking in the top quartile of North American funds per data from Carta. 

Panache is currently investing out of its $100-million CAD second fund, which it closed in 2022. Lor said Panache has deployed just over 30 percent of this capital to date across 37 companies, noting that the firm plans to make another 43 core investments out of Fund II.

RELATED: Panache closes $100-million for second fund as firm doubles down on seed-stage startups

Panache said that the last several months have been some of the VC firm’s busiest since its inception in 2018. This year, Panache has made 12 new pre-seed and seed-stage investments.

In a BetaKit opinion piece last month, Matta called “a market bottom,” pointing to improving economic conditions and an uptick in Canadian tech startup formation this year following a slow 2023, according to data gathered by Panache.

Panache reiterated this belief in its announcement. The VC firm said it plans to invest $49 million of its committed capital into early-stage Canadian tech startups over the next two years. 

“While macro risks remain, we are seeing renewed confidence in the tech sector.”

Feature image courtesy Chris Neumann.