- Developer Capital (DevCap) emerges from Monadical, a Montréal-based software development consultancy.
- DevCap operates without management fees, securing $2.5 million CAD for pre-seed and seed-stage AI startups in just three months.
- Steiner and Max McCrea lead DevCap, leveraging Steiner’s investment experience and McCrea’s AI expertise.
- DevCap offers startups access to Monadical’s 31 developers for guidance, alongside financial backing and networking.
- Monadical’s track record includes building seven AI products in nine months.
- DevCap aims to utilize Monadical’s resources to source, vet, and support AI startups, providing a competitive advantage in the market.
Main AI News:
The Canadian AI investment landscape welcomes a distinctive player with the emergence of Developer Capital (DevCap), originating from the Montréal-based full-stack software development firm Monadical. Unlike traditional venture capital (VC) entities, DevCap operates as an investment corporation devoid of management fees, boasting agility that facilitated the swift accumulation of $2.5 million CAD in funding. This financial backing has propelled DevCap into the realm of investing in pre-seed and seed-stage startups within a mere three-month period.
“We foresee the birth of the next generation of tech giants in 2024 and beyond, and we are determined not to overlook this crucial phase,” remarked Steiner, CEO of DevCap.
The leadership mantle of DevCap is donned by Steiner and Max McCrea, co-founder of Monadical, assuming roles as CEO and CTO, respectively. With Steiner’s seasoned investment acumen derived from an extensive tenure as a public markets portfolio manager and McCrea’s profound technical expertise and AI background, the duo epitomizes a synergistic partnership. “Our complementary skill sets have paved the way for a robust alliance,” McCrea articulated to BetaKit.
The genesis of DevCap dates back to 2023 when Steiner transitioned from LionGuard Capital Management to assume the position of Monadical’s chief strategy officer, marking the onset of collaboration between long-time acquaintances. The official launch of DevCap materialized in the latter part of the preceding year.
While conventional VCs primarily extend financial backing and networking opportunities to founders, DevCap distinguishes itself by affording startups access to Monadical’s cadre of 31 developers for advisory and guidance purposes. Monadical, renowned for its software development prowess catering to a diverse clientele spanning from nascent startups to corporate behemoths across various sectors, has spearheaded the creation of seven distinct AI products within the past nine months alone.
DevCap strategically leverages Monadical’s in-house proficiency to navigate the intricacies of sourcing, evaluating, and nurturing pre-seed and seed-stage AI ventures. Steiner and McCrea envisage that this collaborative modality will endow DevCap with a competitive edge in both the pre and post-investment phases, distinguishing it from conventional VC paradigms.
Conclusion:
Monadical’s launch of Developer Capital signifies a paradigm shift in early-stage AI investment, marrying traditional VC funding with hands-on technical guidance. This venture not only enhances opportunities for AI startups but also underscores the importance of leveraging technical expertise within investment strategies, potentially setting a new standard in the market for AI venture capital.
