Business Development  Bank of Canada  (BDC) offers venture capital to Canadian pioneering entrepreneurs and start-ups.

Business Development Bank of Canada is a federal government owned financial institution with a mission to help develop Canadian businesses through financing, venture capital and consulting services, with a focus on small as well as medium-sized enterprises. BDC’s  entrepreneurial and progressive corporate culture exists to support to Canadian businesses and accelerate the success of entrepreneurs.

Venture Capital is available to businesses at any stage (from seed to late/growth stage investments) involved in:

1. Green Energy Production
2. Environmental and Green Technologies
3. Manufacturing Innovations
4. New Electronics
5. Advanced Materials
6. Improvements in broadband transmission/bandwidth
7. Optical and Wireless Networking Technologies
8. Innovative Life Sciences
9. Novel Information Technologies

Typical initial investments range from $500 000 to $3 000 000 as part of a financing round in the $1 000 000 to $10 000 000 range. In return BDC will ask for up to a 49% control of the company and a position on the Board of Directors.

With over 1000 annual request for venture capital financing, the selection criteria and process is extremely competitive with only a few businesses receiving funding. In order to increases the chances of being selected the business must have a leadership team with excellent credentials along with an attitude that wishes to work alongside BDC,  a unique competitive advantage with strong barriers to entry, significant intellectual property, technologies with broader applications than a single product or market, viability for high growth plus high revenues,  job creation, a clear exit strategy, commitment from other investors and detailed business plan.

Companies wishing to apply for BDC Venture Capital must present business plan. Applicants that demonstrate potential will be asked to submit to a due diligence check and invited to a series of meetings discussing a venture capital ask and possible offer. Once an agreement is reached, funds can be invested. This entire process usually takes 3 to 6 months to complete.  

More information can be found at www.bdc.ca

Please feel free to contact me should you have any questions or comments. I can be reached at jorge@jorgeleclair.ca