Lago Innovation Fund

Lago Innovation Fund is a growth-focused alternative credit firm established in 2019. The firm specializes in providing structured financing solutions, including customized term loan credit facilities and equity co-investments, to high-growth companies. Their investment strategy is centered on identifying emerging businesses with sector-changing capabilities, aiming to deliver risk-optimized returns for private credit investors while offering equity-like returns. Lago Innovation Fund operates with a thematic investing approach, seeking out exceptional companies that are redefining their respective sectors.

Founded by Heather La Freniere and Tim Gottfried, Lago Innovation Fund was established in 2019 with a commitment to supporting founders and innovators. The firm aims to provide capital that enables these businesses to scale sustainably and build lasting value, rather than focusing on short-term returns. They emphasize a partnership approach, working closely with portfolio companies to optimize their capital structures and accelerate market penetration.

The firm has made notable investments across a diverse range of sectors. Their portfolio includes companies such as Fortem Technologies, a drone defense solutions provider; Happy Head, which received a debt facility and incremental equity; Sparkfund, an emerging leader in energy transition management; ExoTerra Resource, a space technology firm; Videri, a B2B technology company; and Hearth Display, a women-led technology company focused on family management systems. Other investments include Stake in financial software, Steady State in pharmaceuticals and biotechnology, and Dextall in building products.

Lago Innovation Fund's team comprises seasoned investors with expertise in private credit, alternative lending, and venture debt capital. They apply a rigorous, data-driven selection process that delves into management style, market potential, and financial criteria to identify companies poised to lead tomorrow's economy. The firm's approach is designed to foster deep, long-term relationships with its portfolio companies, supporting their growth throughout various stages.