GrandBanks Capital looks north, once again

For all of the observations about the lack of venture capital in Canada, let’s not forget that deals continue to close each and every week. The recent news that our friends at I Love Rewards have raised another round from Boston-based GrandBanks Capital and our local pals at JLA Ventures is proof of that.

This from a GrandBanks release:

GrandBanks Capital Launches New Fund with Investment in I Love Rewards; Leads $5.7 Million Financing in Toronto

Canadian deals have kicked off GrandBanks Capital’s last two venture funds.

I Love Rewards (www.iloverewards.com), North America’s fastest growing rewards and recognition program provider, has secured a $5.7 million (USD) Series B financing round led by GrandBanks Capital with participation by prior investor JLA Ventures.

The investment in I Love Rewards marks GrandBanks Capital’s 5th investment in a Canadian based startup and sixth transaction in Canada overall.

The capital will be used to accelerate I Love Rewards’ growth by expanding its sales and marketing capabilities in the United States to capture a share of the $47 billion rewards and recognition industry.

“GrandBanks Capital is behind some of the most successful Canadian technology companies today,” said Razor Suleman, Founder and CEO of I Love Rewards. “With their experience and support, we will be able to continue building a great company, service our existing and future customers and meet the needs of our employees.”

I Love Rewards Series B Funding follows a series of key milestones:

Record growth in Q1 of 2009, reporting a 187% increase in gross billings and 253% increase in new customer acquisition year over year.
Awards include: named one of PROFIT Magazine’s Fastest Growing Companies, one of the Top 10 Technology Companies and a Top 100 Employer.

I Love Rewards is a web-based provider of employee rewards and recognition, sales incentive and service award programs that works with top employers and leading companies such as Microsoft, Marriott, ConAgra and Bell.

GrandBanks seems to be the perfect fit for the various Ontario and Quebec-based government vehicles that are tasked with putting money into venture capital funds. We just have to convince U.S. VCs to keep the head offices up here in Canada, and not automatically move them elsewhere — a Canadian HQ hasn’t hurt the growth of Research In Motion (RIM:TSX), for example.

Congrats to Razor and the team.

MRM