# Bootstrapped IT Giant Devolutions Launches Corporate VC Arm to Fund Tech Startups

> Québec-based IT firm Devolutions launches Devolutions Ventures, a corporate VC arm investing $500K to $3M in tech startups and open-source projects.

- Canonical URL: https://coreiten.com/en/article/bootstrapped-it-giant-devolutions-launches-corporate-vc-arm-to-fund-tech-startups
- Language: en
- Section: Business
- Author: Sami
- Published: 2026-09-27T02:01:02+03:00
- Modified: 2026-09-27T02:01:02+03:00
- Publisher: CoreITen (https://coreiten.com)
- Keywords: Devolutions Ventures, Devolutions, David Hervieux, Obkio, Mizo, Avalonia UI, Telegraph Ventures

## Summary

Bootstrapped IT firm Devolutions launched a new corporate venture arm called Devolutions Ventures with $10 million CAD already deployed across seven investments.

- Devolutions generated $70 million CAD in revenue last year and employs 250 people in Lavaltrie, Québec.
- The new venture arm targets investments ranging from $500,000 CAD to over $3 million USD using flexible funding models like SAFEs and non-voting shares.
- Initial portfolio companies include Montréal-based Obkio, AI agent automator Mizo, and Estonia's open-source framework Avalonia UI.
- The launch arrives as a Deloitte Ventures report notes a 20 percent year-over-year drop in Canadian corporate VC deal volume.

**Why it matters:** This initiative demonstrates how profitable, bootstrapped tech companies can strategically fund ecosystem growth and open-source projects to fill funding gaps left by traditional venture capital.

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Devolutions, a bootstrapped IT services firm that generated $70 million CAD in revenue last year, is stepping into the corporate venture capital arena to fund the next generation of IT and managed service provider (MSP) technologies. The 250-person, Lavaltrie, Québec-based company has officially launched Devolutions Ventures, a new division that has already deployed $10 million CAD across seven investments, acquisitions, and open-source sponsorships.

The new venture arm targets investments ranging from $500,000 CAD to over $3 million USD. Rather than strictly pursuing traditional equity, Devolutions Ventures is utilizing a flexible funding model. This includes simple agreements for future equity (SAFEs), non-voting common shares, and a unique sponsorship model designed to financially support open-source developer teams without taking any ownership stake.

> We have very deep pockets for all kinds of opportunities.
>
>  - David Hervieux, CEO, Devolutions

CEO David Hervieux explained that the dual goal is to give emerging products a chance to scale rapidly while providing a safety net by potentially integrating them as features within the core Devolutions platform. The company, which provides password management and remote desktop control to over one million users across 140 countries, has already backed several notable tech firms. Recent investments include Montréal-based performance monitoring platform Obkio, AI agent automator Mizo (co-backed with Telegraph Ventures), and Estonia's Avalonia UI, an open-source framework.

### The Bootstrapped Advantage in Corporate VC

Devolutions’ entry into corporate venture capital highlights a strategic shift for highly profitable, bootstrapped tech companies. By funding open-source projects and complementary IT tools without demanding voting control, Devolutions is essentially outsourcing its R&D while building a loyal ecosystem around its core platform. This approach contrasts sharply with traditional VC models that demand aggressive board control and rapid exits.

Furthermore, this move comes at a critical time for the Canadian tech sector. With a recent Deloitte Ventures report noting a 20 percent year-over-year drop in Canadian corporate VC deal volume, Devolutions is stepping in to fill a vital funding gap. If successful, this hybrid model of equity investments and open-source sponsorships could serve as a blueprint for other mid-sized tech firms looking to expand their market footprint without diluting their own ownership.

## Sources

- [betakit.com](https://betakit.com/devolutions-wants-to-support-quebecs-it-ecosystem-with-corporate-venture-capital/)