MONTREAL, Feb. 18, 2025 /CNW/ - Through its investment arm, BDC Capital, the Business Development Bank of Canada (BDC), will commit an additional $500-million to its Growth Venture Fund (GVF) and $450-million to its Growth Equity Partners (GEP) program. This new capital will help Canada's next generation of global champions access the capital they need and help buoy the current chilling effect within the investment ecosystem.
In a period of heightened uncertainty, such as higher inflation and borrowing costs, potential tariffs or increased labour shortages, economic conditions continue to challenge the ability of Canadian entrepreneurs to raise capital.
"We are leaning into our role as Canada's development bank", says Isabelle Hudon, President and CEO, BDC. "We fundamentally believe that our economic resilience begins and ends with the Canadian entrepreneur. Investing in our best and brightest is always a winning strategy, whether it's responding to the short-term uncertainty like tariffs and inflation or shoring up our long-term economic prosperity".
While BDC's investment arm, BDC Capital, has 12 different funds that invest across the business growth cycle, from pre-seed to late-stage, today's capital commitment targets the later-stage companies that have been facing challenges, while also empowering promising early-stage firms with the resources needed to scale into global champions. According to BDC's latest Venture Capital (VC) landscape report, VC investment activity in Canada declined across all stages in 2023. Notably, the capital invested into late-stage companies was almost cut in half compared to 2022. Without sufficient later-stage funding, promising Canadian startups and later-stage companies may need to seek investment from foreign investors to remain competitive. BDC is therefore ensuring these innovative firms are not stymied on their growth path and continue to expand locally.
"A healthy ecosystem requires a balance of funding across all stages of the business lifecycle", says Geneviève Bouthillier, Executive Vice-President, BDC Capital. "That's why BDC acts as an enabler, offering support and financing to all entrepreneurs, regardless of their size, stage or sector. Entrepreneurs are the doers that build businesses, communities, and economies. By investing in their growth, BDC is propelling a variety of Canadian champions for the next decade."
BDC's mission is to generate positive impacts upon the Canadian economy and investing in companies closest to exponential growth will lead to the quickest economic traction. Despite the turbulence, the GVF has had significant traction since its inception in 2024, supporting rapidly expanding businesses such as:
- Certn (Victoria, B.C.), a global leader in online background screening, helps businesses of all sizes know exactly who they are hiring and renting to. BDC's $30-million investment will enable Certn to further expand its AI- and automation-powered background checks and support its ambitious goal of building trust worldwide.
- StackAdapt (Toronto, ON.), a digital advertising platform specializing in native ads, video, audio, connected TV, gaming and digital outdoor advertising. StackAdapt's platform was designed with artificial intelligence (AI) engines and advanced machine learning algorithms to generate the best possible advertising campaign results. The investment from the Venture Capital Growth Fund allowed the company to enhance its team and its marketing strategy to accelerate its international growth.
Launched in 2017, BDC's GEP program accelerates growth by investing equity capital in Canadian mid-market businesses as a minority investor. By partnering with later-stage companies and the next generation of entrepreneurs looking to scale, the GEP has successfully invested over $440 million in 36 Canadian companies, including recent investments in:
- BCES Global (Ottawa, ON.), a consolidator of electrical maintenance and technical service providers, supporting commercial, industrial, and governmental customers. Primary services include preventive maintenance, inspection and testing, engineering and technical services, and health and safety training. BDC's investment enabled Ottawa-based Kroon Electric Corp. to establish a consolidation platform to better serve growing demand for professional electrical services, and to simultaneously acquire three U.S.-based companies.
- Dissan Group (Montreal, QC.), a leading distributor of janitorial supplies and equipment with 60 locations across Canada. BDC's Growth Equity Partners team's support allowed Dissan to acquire three strategic members of its network and begin the next phase of its growth story by leveraging a leading market position.
With almost $1 billion of incremental capital to support business growth, the GVF and GEP investment teams are actively looking to partner with companies across all regions of Canada.
BDC's Growth Equity Partners' (GEP) investment platform allows it to be the sole investor, lead investor, or co-investor in an equity transaction for growth capital or an ownership transition. The GEP targets established, profitable companies with a proven business model with demonstrated products or services, an experienced and financially committed management team and a history of stable positive cash flows.
BDC's Growth Venture Fund (GVF) targets late-stage, innovation-based businesses that are at an inflection point and show strong potential for meaningful scale. The Fund will invest up to $100M per year in late-stage technological companies that leverage innovative technologies and business models in various areas such as: Artificial intelligence (AI) and machine learning (ML) applications for eCommerce, Blockchain technology for Fintech, Cybersecurity, etc. The GVF will expand its original co-investment platform for partners to a hybrid model between direct and co-investments.
About BDC Capital
BDC Capital is committed to supporting innovative Canadian companies in their formative phase by backing them with a full range of capital solutions and advice to accelerate their scaling journey. By collaborating closely with the ecosystem, it is creating the space for innovators to grow and succeed. For more information on BDC Capital's solutions, visit bdc.ca/en/bdc-capital.
About BDC: 80 years as Canada's bank for entrepreneurs
BDC is a partner of choice for all entrepreneurs looking to access the financing and advice they need to build their businesses and tackle the big challenges of our time. Our investment arm, BDC Capital, offers a wide range of risk capital solutions to help grow the most innovative firms. BDC's development role means we are in a state of perpetual evolution – wherever entrepreneurs go and whatever the Canadian economy needs – we will be there to help them defy the odds. 80 years later, that commitment remains very much alive. BDC's services in 2024 alone will add an estimated $25.5 billion in GDP to Canada's economy over the next five years. We are one of Canada's Top 100 Employers and Canada's Best Diversity Employers, and the first financial institution in Canada to receive the B Corp certification in 2013. For more information on our products and services and to consult free tools, templates and articles, visit bdc.ca or join BDC on social media.
SOURCE Business Development Bank of Canada
Flavie Côté, BDC Media Relations, [email protected] / 514-465-6329 / [email protected]
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