Janet Bannister’s Staircase Ventures Secures $50 Million for Second Fund Amidst Challenging VC Landscape

Toronto-based Staircase Ventures, led by Janet Bannister, has successfully raised $50 million for its second seed-stage investment fund, exceeding its initial $40 million target. This achievement comes as Canadian venture capital firms face a difficult fundraising environment, with 2025 marking one of the slowest years for VC fundraising in nearly a decade, according to a recent RBC survey.

Fund Investors and Strategy

The new fund attracted investments from Business Development Bank of Canada (BDC Capital), the British Columbia government’s InBC Investment Corp. and the University of Alberta’s endowment fund – marking only the third Canadian VC firm backed by the U of A fund. Previous investors, including Royal Bank of Canada, Northleaf Capital Partners, PointClickCare Corp. Co-founder Mike Wessinger, and ex-Shopify chief product officer Craig Miller, also participated.

Staircase Ventures focuses on seed-stage investments, ranging from $1 million to $2.5 million per company, with a particular emphasis on companies leveraging artificial intelligence (AI). All portfolio companies utilize AI to improve operational efficiencies and enhance customer value.

Strong Performance of First Fund

Despite the broader market challenges, Staircase’s first fund, which raised $34 million in 2023, has demonstrated strong performance, generating an average 50% annual internal rate of return. This places it in the top 10% of North American funds launched in the same year, although these gains have not yet fully materialized as cash returns for investors.

Five of the twelve companies backed by the first fund have successfully secured follow-on financing at higher valuations. Current portfolio companies include Una Software Inc., an AI-powered financial planning software provider, and Biossil Inc., a drug development startup.

Founder-First Approach

Janet Bannister founded Staircase Ventures in 2023 after serving as Managing Partner at Real Ventures since 2014. She is known for a “high-touch” approach to supporting founders, providing not only capital but also access to executive and health coaches, financial advisors, and resources for family support, such as childcare and eldercare.

Staircase also fosters a collaborative environment, connecting founders with peer support groups and leveraging its network of advisors and investors to assist portfolio companies. A unique aspect of the Staircase model is that founders collectively share in 20% of the firm’s investment gains (carry).

Industry Recognition

“A lot of people say they are founder-friendly; she really is,” stated Thomas Park, Chief Investment Officer of InBC. “She’s the kind of person that can build relationships without being short-term or transactional.”

Janet Bannister’s Background

Prior to launching Staircase Ventures, Bannister held positions as a brand manager at Procter & Gamble, an engagement manager with McKinsey & Co., and spent four years at eBay in Silicon Valley, where she oversaw the launch of Kijiji.ca. She also co-chairs C100 and serves on the boards of the Ivey Business School and LEAP, a social venture accelerator. Bannister was a varsity long-distance runner and a national triathlon champion, finishing 8th in the world at the Long Distance Triathlon World Championships in 1996.

Bannister is also a member of the Canadian Economic Strategy Roundtable on Digital Industries and previously guided fintech strategy for the province of Ontario in 2017.