BDC Venture Capital invests $63 million in three new Information Technology venture capital funds

Accelerates commitment to re-building Canadian venture capital industry

MONTREAL, May 24, 2012 /CNW Telbec/ - Continuing a pace begun in December of 2011, the Business Development Bank of Canada (BDC) has recently invested $63 million in three new venture capital funds: Rho Canada Ventures II, Celtic House IV and iNovia Capital III.  These three investments help to create venture funds totaling over $300 million in capital from BDC and other co-investors.  Beginning immediately and continuing over the next 5-7 years, these three funds will invest in up to 35 promising young Information and Communications Technology companies across Canada, working to help them develop into global leaders in their industries.

"Because of the quality of their managers and the ongoing support they offer to investee companies, these three venture capital funds perfectly satisfy BDC's objectives:  to help build world-class technology companies in Canada and strengthen the country's venture capital industry," explained Neal Hill, Vice-President, Fund Investments at BDC Venture Capital.

Working closely with BDC to support these new funds were several co-investors, including Teralys Capital, Ontario Venture Capital Fund (OVCF) managed by Northleaf Capital Partners, and Export Development Canada (EDC).   BDC also invests in funds that specialize in the Life Sciences, Energy/Cleantech and AgriBusiness categories, and now holds positions in a total of 25 funds started since 2001.

"With its national charter and mandate to focus on supporting entrepreneurial businesses across Canada, BDC plays a unique role in the VC ecosystem," noted David Adderley, Partner with Celtic House Venture Partners.  "Celtic House is proud that we were chosen as one of the venture capital fund managers that BDC is supporting in an effort to encourage a healthy and profitable VC ecosystem.  We are already close to making our first investments from the new Fund, and look forward to helping another generation of emerging firms become highly successful."

"Via their networks of expertise and in-depth understanding of their industry sector, venture capital funds make a powerful contribution to the development of companies," said Hill. "BDC is determined to continue its efforts to stimulate the establishment and maintenance of top-tier Canadian venture capital funds able to propel our best technology companies onto the global stage."

About BDC Venture Capital
BDC Venture Capital is a major venture capital investor in Canada with more than $1 billion in current and planned investments. BDC VC invests both directly into companies and indirectly into promising VC funds.  Its investments are made primarily into companies involved in the areas of Information Technology, Energy/Cleantech and Health Care.  In addition, through strategic initiatives and investments, it plays a unique role in stimulating both the Canadian venture capital industry and the surrounding innovation ecosystem, including leading efforts in entrepreneur and angel investor development.

About BDC
Canada's business development bank, BDC, puts entrepreneurs first. With almost 1,900 employees and more than 100 business centres across the country, BDC offers financing, subordinate financing, venture capital and consulting services to 29,000 small and medium-sized companies. Their success is vital to Canada's economic prosperity. www.bdc.ca

Maria Constantinescu
Advisor, Public Relations, BDC
514 496-7146
[email protected]