BDC launches new CA$50M vehicle to invest at early stage

 BDC launches new CA$50M vehicle to invest at early stage

Image courtesy: BDC

The Business Development Bank of Canada (BDC) has announced fresh CA$50 million investment in its Seed Venture Fund. The fund will invest at primarily pre-seed and seed-stage in early-stage Canadian software companies eyeing the global markets. It aims to focus on Enterprise SaaS, Digital Health, and FinTech sectors, especially those employing AI to disrupt traditional industries.

BDC Capital, the investment subsidiary of BDC, is a significant player in the venture capital landscape in Canada. It offers a range of investment and advisory services to Canadian businesses, with a focus on small and medium-sized enterprises. It’s involved in different stages, by providing a full range of capital from seed stage to IPO, and across sectors. The firm now manages more than CA$6 billion and is a strategic partner to some of the most well-known startups in the nation.

This move broadens the fund’s mandate to lead seed-stage rounds and focus on regions facing a dearth of seed capital. The fund is also aiming to strengthen its connections with incubators, accelerators, innovation hubs, angels, and early-stage investment partners nationwide. The announcement highlighted that this was being done to create a nurturing environment for young startups.

First launched in 2012, BDC Capital’s seed-stage vehicles have invested in over 190 Canadian companies till date. These companies have garnered over $1 billion in follow-on funding.

Also read: GeologicAI’s robot geologists get US$20M from BEV, BDC & others

BDC hoping to fuel further economic growth by going early stage

Isabelle Hudon, President and CEO of BDC, highlighted the importance of promoting startups across Canada. She further emphasized the role of ample funding and guidance in building resilient, sustainable, and high-performing companies. She added that BDC’s intentional resource allocation to seed-stage firms in underserved areas was also pivotal in developing a pipeline of businesses ready to scale and compete globally.

Jérôme Nycz, Executive Vice President of BDC Capital, stressed the transformative impact of early support on start-ups’ ability to scale, innovate, and ultimately, fuel Canada’s economic expansion.

“We understand that seed-stage businesses need support from an array of partners to develop a winning model early on and we’re making it a priority to help create the right environment and conditions for them to boost the Canadian technology ecosystem from the ground up.”

Jérôme Nycz, Executive Vice President of BDC Capital

The fund has made several large investments in Canadian tech startups in recent months. These include its participation in Miovision’s CA$36M round about a week ago, NOBULL’s CA$70M round earlier this month, and General Fusion’s CA$33.5M Series F round in August.

The Bank also recently announced Thrive Lab, which will invest CA$100 million with like-minded partners in women-led, social impact businesses at the very beginning of their development.

Also read: Innovative AgTech startup Vive secures US$8.4M in funding led by BDC


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