Toronto’s McRock Capital announced the second close of its anticipated $65 million fund, with contributions from both Cisco Investments and Teralys Capital Innovation LP, a fund-of-funds based in Montreal.

The fund, called McRock iNFund LP, will focus on businesses in the Industrial Internet of Things (IIoT) space. McRock’s Scott MacDonald mentioned that the team holds a yearly IIoT conference in Montreal, and that startups in the city are always on their radar.

“Montreal is emerging as a hotbed of IIoT activity with companies like mnubo and reelyActive, and we like to have our fingers on the city’s pulse,” said MacDonald. “This June we’ll be hosting our 4^th Annual Industrial Internet of Things (IIoT) Summit in Montreal again, and we’re always on the hunt for big ideas within IIoT.”

McRock said that it’s focused exclusively on the intersection of sensors and software in large industrial markets, otherwise known as the IIoT. The fund will invest in high growth private companies across North America. Specifically it’s targeting large industrial markets looking to maximize the efficiency of operations by connecting the unconnected and using software to make machines, equipment and devices run more intelligently. A final fund close is scheduled in 2015 with a cap of $65 million.

“The addition of Cisco Investments and Teralys to our investor base further validates the tremendous momentum and appeal of the IIoT,” said McRock cofounder Whitney Rockley.

“What makes this so exciting is that only one percent of the world’s devices are connected today,” added Paul Howarth, director, Cisco Corporate Development. “The founders of McRock Capital have deep experience investing in Industrial software companies and are incredibly well positioned to capitalize on the next evolution of the Internet. We are delighted to invest in McRock under our Cisco Canada Innovation Program.”

“Teralys is excited to be joining McRock, a specialized investment fund dedicated to the rapidly growing Industrial Internet of Things sector,” said Eric Legault, managing partner of Teralys Capital. “The founding partners of McRock have backed some very successful entrepreneurs and early disruptors in the past, and will use their experience to support the next generation of high growth companies in that sector.”