Venture capitalist Chamath Palihapitiya has committed $20 million of his own personal money to acquire a majority stake in Toronto-based mobile development shop Xtreme Labs, according to AllThingsD.
Chamath told Liz Gannes that the deal makes sense "in light of the current scarcity of good mobile developers." The VC has put $6 million into the company upfront. He has committed a total of $20 million over three years.
Mr. Palihapitiya knew Xtreme cofounder and CEO Amar Varma from university in Canda. Xtreme has built mobile apps for Microsoft, Groupon, and others.
Chamath, founder of the $275 million Social+Capital Partnership fund, believes that Canada may be the perfect place for budding entrepreneurs to grow up.