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Chronicles

The story behind the story

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Quebec-based E2ip, which develops tech for smart displays and surfaces, raised a $120M Series B co-led by Export Development Canada and McRock Capital

Export Development Canada and McRock Capital co-led the round.  —  St-Laurent, Québec-based E2ip Technologies … LinkedIn: Mike Dawson LinkedIn: Mike Dawson : Yet another big announcement from a McRock portfolio company.  A huge funding round for a great Canadian success story building some amazing tech. …

BetaKit Charlize Alcaraz

Context & Ripple Effects

E2ip's $120M Series B is the largest Quebec hardware round in this coverage arc, and the co-lead is the tell: Export Development Canada, a federal lender, is acting as a growth-stage VC. That role recurs — a year later EDC led Toronto fintech Brim's $85M Series C, making E2ip the first data point in an EDC-led pattern.

The round also fits Quebec's run of institutional-scale checks: Montreal's GSoft raised CA$125M from CDPQ months later, and telecom-software firm Gaiia followed with a CA$54.8M Series B in 2026 — provincial startups pulling nine-figure backing from quasi-governmental and specialist funds rather than US leads.

First-order effects

  • E2ip gets $120M to scale its smart-display and smart-surface technology out of St-Laurent, with McRock Capital adding it to an industrial-IoT portfolio its principals publicly championed on LinkedIn.
  • Export Development Canada deploys federal capital directly into a private hardware company's cap table, extending its mandate beyond trade financing into venture-style ownership.

Second-order effects

  • Other Canadian growth-stage founders gain a template for courting EDC as a lead rather than a follow-on, forcing domestic VCs to compete against a crown corporation with deeper balance sheets.
  • McRock's win reinforces the niche of industrial-focused funds in Quebec hardware deals, pressuring generalist funds either to specialize or cede the segment.

Third-order effects

  • If EDC keeps leading rounds like E2ip's and Brim's, Canadian late-stage financing structurally shifts toward government-backed institutions anchoring rounds that would otherwise depend on US venture capital.
  • Hardware and industrial-tech companies in Quebec emerge as a distinct funding corridor — pension and export-credit capital filling the stage where traditional VCs thin out.

The trend: Canadian growth-stage tech is being anchored by quasi-governmental capital — EDC, CDPQ — alongside specialist funds, reducing dependence on US-led rounds.