Back in 2015, Damir Hot and James Rife set out on a mission to solve a series of problems they saw in how equity research and investment management teams accessed and used fundamental data. Initially working out of a basement in Vancouver, they began building a comprehensive database of forward-looking models for public companies. That effort laid the foundation for Canalyst, a leading platform for public company data and analytics. In August 2022, Canalyst was acquired by Tegus, a Chicago-based primary research platform for institutional investors, for more than $400 million.
“Our goal from day one was to make life easier for investors and finance professionals by giving them faster access to high-quality data,” recalls Hot about the company he co-founded a decade ago. “Hundreds of institutions worldwide, including many of the largest asset managers and enterprises, rely on the platform every day.”
The sale turned out to be a fantastic outcome for everyone, with Hot and Rife slated to stay on during the transition to help lead the combined business.
Meanwhile Vanedge Capital, the early-stage Vancouver-based venture capital firm that led the company’s $2 million seed round in 2016 and participated in every round since, sold half of its shares to Tegus for a combination of cash and Tegus stock, generating a strong return for its investors in the middle of a difficult macroeconomic environment. Importantly, rather than receive common shares in Tegus, Vanedge negotiated to receive preferred shares in what would prove to be a very prudent move. The following year, Vanedge was recognized with the Venture Capital Deal of the Year Award for the role it played in helping the company reach that very successful outcome.
After the acquisition Tegus continued to grow, building a strong reputation for streamlining the way that institutional investors and businesses conduct research. The combined business provided customers with real-time access to the most comprehensive database available on the market with more than 40,000 expert interviews, over 4,000 downloadable financial models, workflows to surface and analyze data from SEC filings, as well as expert interview services.
Despite that success, the company faced considerable headwinds operating in a difficult environment during a period of rapid consolidation. Post acquisition, many aspects of the investment thesis Vanedge had formulated when it backed Canalyst no longer held true.
“We had every intention of staying on as passive shareholders and continuing to back Damir and James,” says Vanedge Managing Partner Paul Lee. “Less than a year after the transaction, however, they were no longer the ones steering the ship. We have such tremendous respect for them and for their abilities. For us, their departure was a clear sign that it was time for us to find an offramp.”
That opportunity came in 2024, when Tegus got acquired by New York City based AlphaSense, a market intelligence and search company, for $930 million. “The acquisition resulted in an even stronger business with much less competition,” says Lee. “Still, given the state of IPO markets at the time and the fact that we had already been fully or partially invested for eight years, we requested a full exit.”
While most investors once again received a combination of stock and cash for their shares in Tegus, this time Vanedge negotiated an all cash deal for its preferred shares, which by now were much more valuable than the common shares most other investors held. Ultimately, that transaction allowed Vanedge to deliver an IRR of more than 44 percent over the eight years it was invested in the business and has earned the firm the 2025 VC Global Deal Maker Award, sponsored by PIXCELL.
“We were really pleased with the outcome,” says Lee. “In a challenging environment where LPs are eager for a return of capital, it would have been wrong not to take the opportunity to do so. Tegus is an excellent platform that we use extensively for our own investment decisions. We think combining it with Alphasense’s platform not only makes great strategic sense, but will also benefit both customer bases.”
“Vanedge has always been a great partner and are really good stewards of capital,” says Hot looking back on his long relationship with the firm. “They are incredibly talented at managing transactions to the benefit of both their LPs and for the companies they invest in. They always look to negotiate deals that work for everyone and that deliver the best outcome for all shareholders. In my experience, that’s very rare.”
Hot and Rife have also since become LPs in Vanedge’s most recent fund.
